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Ration subsidy through banks: Kerala to go ahead with proposal

Posted on Nov 26, 10:24PM | UNI

The Kerala Government will distribute the ration subsidy through banks to ensure that the subsidy reached the beneficiaries, Chief Minister Oommen Chandy said today.

Talking to newspersons here after discussions with the leaders of the Opposition parties at his chamber, the Chief Minister explained the need to bring in changes in the Public Distribution System (PDS).

The decision to disburse subsidy through banks was taken on the suspicion that a large quantity of subsidised rice was getting diverted.

Such a move would prevent blackmarketing of ration goods.

If the subsidised rice distributed through PDS had reached people the price of rice would not have risen in the market, he said.

The Government is spending Rs 700 crore for giving subsidy, he added. The BPL category would continue to get 25 kg of rice a month at Rs 1-a-kg; however smart cards would be made mandatory.

The subsidy for the amount of rice purchased through PDS by APL category would be credited to their bank account, he said. Civil Supplies Corporation would directly procure the rice from the mills. Out of that 62,000 tonnes of rice would be given to schools for the midday meal scheme. Rest of the rice would be distributed through PDS.

He, however, said as suggested by the Opposition the matter would be discussed in the Assembly. Discussions would be carried out with other ministers regarding this, he added.