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India

Grains

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01/09/2013

Consumption and marketing

Food subsidies

Signed the National Food Security Bill into law, following receipt of parliamentary approval in August. The law entitles the general population to a ration of 5 kg of foodgrains per person per month, but families covered by the Antyodaya Anna Yojna (AAY) scheme will continue to receive a monthly allowance of 35 kg of foodgrains per household. For the first three years, supplies will be distributed through the Targeted Public Distribution System at subsidized prices of Rupees 3 (USD 0.05), 2 (USD 0.03) and 1 (USD 0.02) per kg of rice, wheat and coarse grains, respectively, after which prices are to be determined based on the prevailing minimum support prices for the crops. Pregnant women, lactating mothers and children between six months and fourteen years of age will also be entitled to meals free of charge. A food security allowance is to be provided to beneficiaries when foodgrain supplies cannot be provided. The scheme is expected to cover up to 75 percent of the rural population and 50 percent of urban dwellers. The percentage coverage of rural and urban areas in each state will be determined by the central government, while state governments were tasked with identifying eligible households and given one year’s time to do so