Prudent Management of Foodgrain Stocks

To ensure adequate availability of wheat and rice in central pool, to keep a check on the open market prices, to augment the domestic availability and to ensure food security, the Central Government has taken following steps for prudent management of foodgrains stocks:

  • Steps have been taken to maximize procurement of wheat and rice and MSP of wheat and paddy has been increased successively.
  • State Governments, particularly through the Decentralized Procurement (DCP), are encouraged to maximize procurement of wheat and rice by taking up procurement of paddy from farmers by State Agencies.
  • Strategic reserves of 5 million tonnes of food grains over the existing buffer norms has been maintained to be used in extreme situations.
  • Sale of wheat and rice was undertaken through Open Market Sale Scheme (OMSS) (Domestic) to check inflationary trend in food security.
  • Central Issue Prices (CIPs) of rice and wheat have not been revised since July, 2002.

Replacing Food with Cash

The Cash Transfer of Food Subsidy Rules, 2015 were notified by the Department of Food and Public Distribution on September 3, 2015. Section 12 of the National Food Security Act, 2013 stated that reforms under the Public Distribution System (PDS) be undertaken from time to time, and that the Central Government may make rules in this regard. These reforms include the introduction of cash transfer schemes to targeted beneficiaries over time.

The Cash Transfer of Food Subsidy Rules, 2015 provide for direct cash transfers to beneficiaries in certain identified areas in States and Union Territories. For States and Union Territories which are not identified under this scheme, food grains will continue to be transferred under the existing PDS scheme.

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