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Centre cuts wheat allocation to 10 states under NFSA

Days after it minimize the wheat allocation beneath the Pradhan Mantri Garib Kalyan Anna Yojana within the wake of grain’s dwindling availability attributable to decrease opening inventory, sluggish procurement and aggressive shopping for by personal merchants, the Centre on Saturday introduced minimize within the wheat allocation of 10 states beneath the National Food Security Act, 2013. However, these states have been allotted further amount of rice that is the same as the minimize of their wheat allocation.

Addressing a press convention on Saturday, Food Secretary Sudhanshu Pandey stated that after consulting with the states, the Centre has reallocated some portions by altering ratios of wheat and rice. For instance, states getting wheat and rice within the ratio of 60:40 will now get it within the ratio of 40:60, he stated.

Similarly, 75:25 ratio of wheat and rice has been made 60:40, Pandey stated, including that states the place rice allocation has been zero, will proceed to get wheat. For all small states, NE states and particular class states, allocation has not been modified, he stated.

Meanwhile, in a communication to states, the Union Food Ministry stated, “To ensure management of foodgrain stocks as per norms, to position rice stock for distribution of fortified rice, ease the pressure on the logistics and after due consultations, it has been decided to revise the NFSA allocation of rice and wheat under AAY & PHH category in r/o 10 States/ UTs i.e. Bihar, Jharkhand, Odisha, West Bengal, Delhi, UP, Gujarat, Maharashtra, Madhya Pradesh and Tamil Nadu and under tide over category in r/o 3 states i.e. Uttarakhand, Kerala and Tamil Nadu for the remaining 10 months of FY 2022-23 i.e. June, 2022 to March, 2023…”

The 10 states of which wheat allocation has been revised downward beneath the NFSA are: Bihar, Jharkhand, Odisha, West Bengal, Delhi, Uttar Pradesh, Gujarat, Maharashtra, Madhya Pradesh and Tamil Nadu and these accounts about 67 per cent (or 55.14 crore) of 81.35-crore beneficiaries coated beneath the NFSA. After the revision, their mixed month-to-month wheat allocation would come right down to 9.39-lakh metric tonnes from their present allocation of 15.36-lakh tonnes — a drop of 5.97-lakh metric tonnes. However, these states will probably be supplied further rice that will probably be equal to chop of their wheat allocations.

Besides, tied over allocation of wheat for 3 states — Uttarakhand, Kerala and Tamil Nadu — has been minimize. The mixed present month-to-month tied over wheat allocation of those states is about 1.13-lakh metric tonnes. However, after the revision, it might turn into nil.
The NFSA offers that “in case any state/UT’s allocation under NFSA is lower than their current allocation, it will be protected up to the level of average off-take under erstwhile normal TPDS during 2010-11 to 2012-13, at prices to be determined by the Centre”. This further amount of foodgrains is known as the tide over allocation.

“The validity period for lifting of the revised foodgrains for June 2022 will be up to 30 days from the date of issue of this letter. The validity period for rest of the months (July 2022-March 2023) will be up to last date of the month preceding the allocation month,” the Ministry stated.

“If any quantity of wheat of the existing allocation is already lifted by states, adjustment may be done for the respective quantity during the remaining period of the year,” it stated.

“There will be no change in cost sharing on account of such distribution, including food subsidy, intra-state transportation and dealer’s margin/additional dealers margin, it will continue as per current sharing basis,” it added. According to the Food Ministry, the transfer is predicted to save lots of 61 LMT wheat over the remaining10 months of the present monetary yr.

On May 4, the Centre had introduced a minimize in wheat allocation beneath the PMGKAY for the remaining 5 months until September 2022. That minimize is estimated to save lots of 55-lakh metric tonnes of wheat until September 2022. However, an equal amount of rice has been allotted to
the states beneath the PMGKAY.

The Centre’s transfer comes at a time when there was a sudden spike in wheat and atta costs amid rising demand and decrease manufacturing and public procurement. According to the federal government, the opening public inventory wheat as on April 1 stood at 190 LMT. A amount of 195 LMT of wheat is predicted to be procured throughout the present rabi season. According to the ministry, 180 LMT wheat has been procured until May 13 throughout the present rabi season.

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