Govt to sell pulses, cooking oil at cheaper rate via PDS

To protect BPL families from possible price rise, the Cabinet Committee on Economic Affairs (CCEA) today gave its approval for selling imported pulses and edible oil at subsidised rates through ration  shops.

The CCEA also approved an outlay of Rs 884 crore for computerisation of public distribution system (PDS) that is aimed, among other things, elimination of bogus ration cards.

Announcing the decisions, Finance Minister P Chidambaram said, "The CCEA today gave its approval for introducing a variant of the earlier scheme for subsidised distribution of imported pulses through PDS with a subsidy of Rs 20 per kg." The scheme on pulses, which was discontinued in June, will be relaunched for six months till March 31, 2013. Four lakh tonnes of imported pulses would be supplied at  an higher subsidy.

In the earlier scheme, 6.52 crore BPL families were supplied pulses at a subsidy of Rs 10 per kg.

Similarly, the government has approved extension of a scheme for supply of 10 lakh tonnes of imported edible oil via PDS for one more year till September 30, 2012 at a subsidy of Rs 15 per kg.

The schemes on pulses and edible oil are aimed at protecting BPL (Below Poverty Line) families as retail prices of these two commodities are expected to be under pressure in the wake of a possible fall in production.

The CCEA also decided to continue the ban on export of edible oil as domestic availability would be lower this year because of poor monsoon.

However, it permitted export of edible oil in branded packs of up to 5 kg with a quantitative restriction of up to 20,000 per annum with effect from this month.