Reduction in food subsidy likely to add 2,000 cr burden on Telangana, ap

Telangana99com: In what could be a major blow to both Telangana and Andhra Pradesh, the Centre has reduced its share in rice subsidy to people living below the poverty line.

The Centre has asked both states to implement the new guidelines under the Food Security Act with effect from October 1. This will impose a financial burden of about Rs 2,000 crore on the two Telugu states. While Telangana will have to cough up about Rs 700 crore, Andhra Pradesh will have to spend about Rs 1,250 crore to meet the additional rice subsidy.

As per the new guidelines of the Food Security Act, the Centre will only reimburse the rice subsidy for people living below the poverty line. If any state government wants to extend the rice subsidy to more number of people, it should bear the additional financial burden. According to the revised statistics of the Centre, only 60.96 per cent of rural population and 41.04 per cent of urban population in Telangana and Andhra Pradesh live below the poverty line. But, the BPL cards issued in the two states outnumber the total population.

“Now we will have to spend around Rs 700 crore to procure additional 40 lakh tonnes of rice for distribution to BPL families in the state as the Centre has cut down the rice supply to 80 lakh tonnes from 1.2 lakh tonnes,” said a senior official in Telangana government.


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