Government releases Rs 24,250 crore to FCI as food subsidy till Apr 29

New Delhi: The government has released Rs 24,250 crore till April 29 of this fiscal as food subsidy to state-owned FCI out of total projected requirement of about Rs 1.19 lakh crore for the full financial year. The Food Corporation of India (FCI) is the government's nodal agency for procurement and distribution of foodgrains.

In a written reply to Lok Sabha, said Food Minister Ram Vilas Paswan that out of the projected requirement of Rs 1,18,734 crore in 2015-16 fiscal, the government has released Rs 24,250 crore as food subsidy to FCI till April 29. "States are allocated foodgrains at subsidised rates under the Public Distribution System, National Food Security Act and other welfare schemes.

Difference between economic cost and the central issue price (CIP) at which foodgrains are issued to states are reimbursed to FCI as subsidy," he added. However, said Paswan the Centre releases food subsidy directly to those states where procurement system is decentralised. Replying to a separate query, said Paswan that 11 states/UTs are currently implementing the food law, which was passed in 2013.

"Remaining 25 states/UTs have not completed all the preparatory measures required for implementation of the Act," he added. The Centre has give an extension till September this year to the States/UTs to complete identification of beneficiaries and other preparatory measures. The law aims at providing legal entitlement to 5 kg of subsidised foodgrains per person per month at Rs 1-3/kg to two-thirds of the country's population.