TS govt to extend Centre\'s free rice scheme to all 90 lakh ration card holders

HYDERABAD: After the Prime Minister Narendra Modi-led government at the Centre recently announced extension of the free food grain scheme to the poor under the National Food Security Act (NFSA) for a year, the Bharat Rashtra Samithi (BRS) government has decided to extend the scheme to all ration card holders in the state.

Telangana has 55 lakh ration card-holders covered by the NFSA, but the state government issued an additional 35 lakh ration cards to cover more beneficiaries by increasing the income cap, covering 2.83 crore individuals in 90 lakh households.

While the Centre provides 5 kg of rice per person at RS. 3 per kg for each household under the NFSA, the state government has increased this to Rs. 6 kg per person at Rs. 1 per kg. The state government is bearing an additional Rs. 2 per kg, as well as an additional one kg for each individual in each household.

The state government's rice subsidy cost has risen to nearly Rs. 2,800 crore. This is expected to double to Rs. 5,600 crore, if all ration card holders are covered until December 2023. With the Centre's decision to extend the free rice scheme till December 2023, the state government's subsidy burden will increase even further, as it will not recover even the current Rs. 1 per kg for all 90 lakh ration card holders covering 2.83 crore people.

While the Centre has set a maximum income limit of Rs. 1.2 lakh per household per year to issue ration cards under the NFSA, Chief Minister K. Chandrashekar Rao has enhanced this limit to Rs. 1.50 lakh in rural areas and Rs. 2 lakh in urban areas. As a result, an additional 35 lakh households are now eligible for ration cards, with the state government bearing the expenditure.

Minister for civil supplies Gangula Kamalakar is said to have informed the CM on Monday of the Centre's decision to implement the free food grain scheme until December 2023 for those covered by the NFSA and urged him to take a decision on the 35 lakh ration card holders covered by the state government's food security rules, 2017.

The CM is said to have responded positively to the idea of expanding the scheme to all 90 lakh ration card holders, and an official announcement is expected soon.