Thursday, January 12 2006 09:58 Hrs (IST) - World Time -

New Delhi: Ahead of the Left-United Progressive Alliance (UPA) Coordination Committee meeting today (Jan 12, 2006), Finance Minister P Chidambaram yesterday said a decision on whether or not to cut food subsidy would be taken after discussions with political parties.

"That decision (to cut food subsidy) is on hold pending further discussions with Congress party, other parties in the Government and the Left. At the end of discussions, the Government will take a decision," he said during an interaction with the Forum of Financial Writers.

The Government last week decided to reduce off take quantity of food grains for both Above Poverty Line (APL) and Below Poverty Line (BPL) families to 20 kg and 30 kg respectively, while increasing the issue prices for wheat and rice under PDS.

But the move, which would have reportedly brought down food subsidy by Rs 4,524 crore for 2005-06, was put on hold after the Congress party itself asked the Government not to go ahead with the decision.

To a query, Chidambaram denied that decisions taken by the Cabinet are put on hold due to compulsions of coalition politics.

"I do not recall more than two decisions which are temporarily put on hold since 2005," he said.

Yesterday, Agriculture Minister Sharad Pawar had said, "I am not executing the decision on food subsidy cut. The entire decision has been stayed. I will discuss this issue with UPA people."