Cash transfer to the beneficiaries of the Anna Bhagya scheme in lieu of free 5 kg rice to be provided under it, announced after the Cabinet meeting on Wednesday, is likely to continue for about three months since enough stock of rice has to be built before the supply to the PDS can be started. The cash transfer will also bring down the cost of Anna Bhagya implementation by an estimated 5% to 10%.
Food and Civil Supplies Department sources said the process of stocking the rice would take at least a couple of months, and more than the tendering process, time has to be given to the supplier to supply the required quantum of rice. “The government has put in place a plan for the three-month period.”
Karnataka requires 2.29 lakh tonnes of rice a month to support the scheme which provides for an additional 5 kg of free rice each member of BPL families and Antyodaya card holders.
May start around October
“There are many variables that are being considered. Procurement is likely to start around October (end of kharif harvest) which will coincide with the start of the rabi season. The price of rice is also expected to come down by then, availability of rice may be more and OMSS(D) (sale by the Central government in which States can participate to purchase rice) may restart by then.”
Sources said the three Central agencies — NAFED, NCCF, and Kendriya Bhandar — had quoted ₹34.60 a kg, including the cost of transportation to the district headquarters, which is equivalent to one kg of rice if the State procures from the Food Corporation of India. “There were two issues that they had flagged. Because of the short notice, they expressed an inability to supply rice in gunny bags and wished to supply in plastic bags. They also sought time to source fortified rice. They were also not willing to negotiate on the price that they had quoted.”
The overall cost estimated to implement the 5 kg free rice scheme could come down by 5% to 10%. “The estimated monthly cost of ₹840 crore to implement the scheme also included transportation and commission cost of ₹2.60 per kg, which the government will not have to incur in the DBT that is now estimated to cost ₹750 crore to ₹800 crore monthly.”
Aadhaar linking
While the Anna Bhagya-related DBT transfers will start on July 1, transfers to beneficiaries will be done through July, sources said, adding that those who have not linked their bank accounts to the BPL card will be asked to do so to get the benefits.
