As part of its measures to contain the rise in prices of rice in the open market, the State government has gone in for the purchase of rice from West Bengal.
Announcing the government’s initiative, Chief Minister Jayalalithaa, in a statement, said the variety of rice equivalent to “Sorna” or IR 36 category would be sold at Rs. 25 a kg and that of “mini kit” rice or super fine variety – Rs. 31 a kg.
The two varieties of rice will be sold through outlets of “Amudham,” retail arm of the Tamil Nadu Civil Supplies Corporation, and cooperative societies. There are 22 “Amudham” outlets including 19 in Chennai and three in Cuddalore and 171 stores across the State belonging to the cooperative sector.
The authorities have lined up for 1,000 tonnes of rice, which is being sourced through spot purchase from the West Bengal Essential Commodities Supply Corporation that also takes care of transportation. The cost of purchase is estimated at Rs. 30 crore.
Sources say that in the open market, the prevailing average rates for fine variety are in the range of Rs. 27 to Rs. 35 and those of super fine variety rice – Rs. 36 to Rs. 39. The arrival of rice from Karnataka has begun. In the weeks to come, the supply situation is likely to ease as paddy being raised through the short-term Kuruvai crop in Tamil Nadu will also be available. The Chief Minister referred to the creation of price stabilisation fund with a corpus of Rs. 50 crore to ensure that the increase in prices of essential commodities was contained in times of increase.
Under the guidelines, the Food, Civil Supplies and Cooperation Department, after securing the government assistance under the fund, is required to sell the commodities, through its agencies, at cost and plough back the proceeds of revenue with the fund.
Pointing out that the Special Public Distribution System had been extended up to March 31, 2013, the Chief Minister said the Union government, with effect from June 30 this year, suddenly stopped providing subsidy for “toor dal.” On an average, the monthly requirement for “toor dhall” was 14,000 tonnes, of which around 2,000 tonnes were provided with a small portion of subsidy. The price of “toor dal” provided by the Union government was Rs. 55 per kg and the State government was making it available at Rs. 30 a kg.
In the case of “urad dal,” the monthly requirement was 10,000 tonnes. With no subsidy support from the Union government, the State government was selling it at Rs. 30 a kg.
As for palmolein oil whose original price was Rs. 66.3 a litre, the Centre was providing it to the State government at Rs. 52.65 a litre. By giving a subsidy of Rs. 27.65 a litre, the State government was making it available to the public at Rs. 25 a litre. The extension of the Special PDS would mean an expenditure of Rs. 907.08 crore, Ms Jayalailthaa said.
