New Delhi: A Group of Ministers on food today could not arrive at any decision on whether to increase the rate at which the Union Government supplies foodgrains to states for distribution to above poverty line families.

The Food Ministry proposes to raise the central issue price (CIP) of wheat and rice supplied to above poverty line (APL) families under the public distribution system, sources said.

The GoM considered the proposal, but no decision was taken. The Food Ministry has been asked to provide some more information regarding states offtake, the sources said.

The issue of increasing the rate for APL category was referred to the group by the Cabinet. CIP is the rate at which the centre supplies the foodgrains to states. Currently, the CIP of rice for APL families stands at Rs 8.30 per kg and wheat Rs 6.10 a kg.

The ministry proposes that CIP of APL families should be fixed at 70 per cent of the economic cost of the foodgrains. Alternatively, it should be equal to the MSP plus bonus, an official said.

The economic cost worked out by the ministry stands at Rs 14.45 a kg for rice and Rs 13.07 a kg for wheat.

The proposal also included limiting the foodgrain quota to 10 kg per month from the present level of 35 kg a month for every household covered under APL category, the sources said.

Food Minster Sharad Pawar and Finance Minister P Chidambaram were present in the meeting, but Railway Minister Lalu Prasad did not attend the meet, sources said.

In view of procurement of foodgrains falling short of the target, the Food Ministry has been advocating for raising the APL prices or a drastic reduction in the monthly quota so that the offtake declines.

Source : PTI