Additional allocation of food grains to States/Union Territories for natural calamities/festivals/additional requirements

No: ----- Dated: Jan, 02 2014

Additional allocation of food grains to States/Union Territories for natural calamities/festivals/additional requirements

The Cabinet Committee on Economic Affairs has approved, that subject to availability of foodgrains in the Central Pool, allocation of foodgrains for festivals and natural calamities to States/ Union Territories (UTs) will be made at Minimum Support Price (MSP) and MSP derived prices for wheat and rice respectively, and at economic cost for any other additional foodgrains requirement of the States/UTs.

The CCEA has also approved the revision in price of allotment made to the Government of Uttarakhand for flood relief in the current year from economic cost to MSP/MSP derived prices in consonance with this decision regarding allocation for calamity relief.

Background:

The Government of India allocates foodgrains to States/UTs under the Targeted Public Distribution System (TPDS). However, requests are received from State Governments and UT administrations for additional allocation on account of either higher coverage of population under the Targetted Public Distribution System (TPDS) or for natural calamities such as droughts, floods, earthquakes etc. or festivals like Onam, Kumbh Mela, Char Dham Yatra, Amarnath Yatra etc. The Government has been making additional allocation of foodgrains on the basis of the Cabinet's instructions in February, 2000 and E-GoM's decision dated 17.9.2009 at Open Market Sale Scheme (OMSS) prices, economic cost or MSP/MSP derived prices at present