With the government's decision to reduce retail prices of urad dhal, toor dhal and palmolein supplied through the public distribution system, the State's food subsidy is likely to touch the Rs.4,500-crore mark in the next financial year.
For the current year, the original budget provision was Rs.3,750 crore. Now, the total subsidy utilised is Rs.3,950 crore.
As a sequel to the latest announcement, the government is expected to incur an additional expenditure of Rs.50 crore.
While the supply of rice, wheat, sugar and kerosene is covered under the PDS, the sale of urad dhal, toor dhal and palmolein comes under special PDS. Besides, fortified atta and condiments are sold at concessional prices. As a matter of policy, the State follows universal PDS. The total number of family card holders is nearly two crore.
The reason for the increase is attributed to the increase in the number of family cards and the rise in the sale of commodities.
In the last 10 months, 2.15 lakh fresh family cards have been issued.
Originally, the average sale of commodities was around 70 per cent. Now, it has gone up to 90 per cent in the wake of increase in prices of such commodities in the open market, according to Swaran Singh, Principal Secretary of the State Food, Civil Supplies and Cooperation Department.
Of the total amount of subsidy utilised so far during 2010-2011, rice accounted for the highest share of Rs.3,136 crore. [Rice is sold at Re.1 a kg]. Pulses came next with Rs.432 crore followed by sugar – Rs.250 crore; kerosene – Rs.42 crore; fortified atta – Rs.40 crore and palmolein and condiments – Rs.25 crore each.
In the category of pulses, the monthly requirement of toor dhal is 14,000 tonnes and urad dhal, 11,000 tonnes. Nearly 1.5 crore packets of palmolein are supplied to family card holders.
The requirement of toor dhal is met through Tamil Nadu Civil Supplies Corporation's procurement of the pulse from Karnataka and Andhra Pradesh. Central agencies also meet the State's requirement by floating global tenders.
