GRAINS OF DISCORD

WITH THE CENTRE STYMYING ITS FREE RICE PLAN, THE CONGRESS GOVT IS GIVING CASH IN LIEU

- Ajay Sukumaran

Barely a month after its resounding victory in the Karnataka assembly election, the Congress has already hit a roadblock. Over the past fortnight, the Siddaramaiah government has found itself scrambling to meet its self-imposed deadline of July 1 to roll out Anna Bhagya, its flagship free foodgrains distribution scheme. To fulfil its poll promise of providing an additional 5 kg to people falling below the poverty line (BPL), it needs to tie up supplies of 228,000 tonnes of rice per month. But the Bharatiya Janata Party (BJP)-led government at the Centre has been playing hardball. Its sudden decision to stop selling rice and wheat to states from its pool and instead dispose of stock in the open market through e-auctions has thrown up a challenge. Having exhausted most avenues, the Congress government has now decided to provide cash in lieu of rice till the crisis is resolved.

Here is the story so far. In June, Chief Minister Siddaramaiah launched the first of the five guarantees that were the key plank on which the Congress fought the Karnataka election. This was a scheme to provide free bus travel for women. Next in line was the Anna Bhagya programme, under which the party promised to double the quantity of free foodgrains being provided to people. By the state government's estimates, this would run up a subsidy bill of about Rs 840 crore per month, or Rs 10,100 crore annually. For the additional supply, the state government approached the Food Corporation of India (FCI), whose regional office initially approved the proposal. But then came the Centre's sudden change of policy on June 13, a decision it says it took in view of the rising prices of rice and wheat.