Govt. decided to reduce the prices of rice and wheat sold under the public distribution system. Consumer affaires and public distribution minister reported in a cabinet meeting that this decision is taken by keeping in line with the government’s stated policy of fixing the issue price at 50% of the economic cost, and brought down the prices of wheat and rice sold under public distribution system. As a result of the acceptance of changes by the govt. in methodology of allocation of costs recommended by the Expenditure Reform Commissions (ERC), the economic cost of foodgrains to be distributed through PDS for people below the poverty line (BPL) has been reduced by 25 paise to Rs. 5.65 per kilo for rice and by 35 paise per kg to Rs. 4.15 per kg for wheat. For those above the poverty line (APL) it has been reduced from Rs. 9 a kilo to Rs. 8.30 per kilo for wheat and from Rs. 11.80 per kg to Rs. 11.30 kg for rice, as reported. As earlier PDS prices will be permanently fixed at 50% of the economic cost. Since the economic cost of rice and wheat have now been lowered, the govt. has decided to translate it in the issue price by reducing the price as release. |
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