Economic study suggests revision of CIP to lessen food stuff subsidy bill

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Observing that the foodstuff subsidy is starting to be “unmanageably large”, the Financial Survey 2020-21 has advised the revision of Central Issue Rates (CIP) of foodgrains released from the central pool, which have been unchanged for the final a number of many years.

“The meals subsidy monthly bill is turning into unmanageably substantial. Whilst it is complicated to lower the economic price of meals administration in look at of growing motivation in direction of food stuff protection, there is a need to have to consider the revision of CIP to reduce the bulging food subsidy bill,” mentioned the study.

The CIP is the cost at which the government helps make out there foodgrains for beneficiaries of the National Food Stability Act, 2013 and other welfare schemes to the states from the central pool.

For occasion, the CIPs of rice, wheat and coarse grains are Rs 300 for each quintal, Rs 200 for every quintal and Rs 100 per quintal respectively below NFSA, Mid-Working day Meal Scheme, and Integrated Child Progress Services (ICDS). It has been unchanged considering the fact that 2013, when the NFSA arrived into effect.

The CIP is larger for other welfare schemes (rice Rs 565 for each quintal, wheat Rs 415 for every quintal and coarse grains Rs 300 for each quintal). It is even increased for Tide Over allocations — rice Rs 830/quintal, wheat Rs 610/quintal and coarse grains Rs 450/quintal). For each these categories, there has been no change given that April 2016.

“The CIP of wheat and rice for NFSA beneficiaries has not been revised since the introduction of the Act in 2013 from Rs 200 for every quintal in case of wheat and Rs 300 for every quintal in situation of rice. On the other hand, the economic charge of wheat for FCI (Food stuff Corporation of India) functions has increased from Rs 1908.32 for each quintal in 2013-14 to Rs 2683.84 for each quintal in 2020-21,” said the Survey.

“Similarly, the financial charge of rice has increased from Rs 2615.51 per quintal in 2013-14 to Rs 3723.76 for each quintal in 2020-21,” it said.

“Further, the NFSA provides a broader protection than the erstwhile TPDS. These all taken collectively has resulted in the increase in foodstuff subsidy,” it additional.

The federal government had funds food stuff subsidy at Rs 1,15,570 crore for the recent money calendar year in opposition to the revised estimate of Rs 1,08,688 crore very last 12 months.

The survey has suggested the revision of CIP at a time when the three farm legal guidelines, introduced by the government, have been opposed by the farmers and the opposition events.

The survey termed the a few rules as “a treatment, not a malady”.

“The three agricultural reform legislations are intended and intended mostly for the gain of smaller and marginal farmers which constitute all over 85 for every cent of the total quantity of farmers and are the most important sufferer of the regressive APMC controlled market routine. The freshly launched farm laws herald a new era of marketplace freedom which can go a extended way in the advancement of farmer welfare in India,” the study said.

The study has also proposed placing up of “agricultural schools” in rural places.

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