The stats are available for a change. 75% rural families and 50% urban coverage subject to a priority coverage of 46% rural poor ( 2001 census) and 24% urban poor that will be updated as the government hopes to a lower number.

Apparently cost of subsidies already a INR650 bln will be only INR 770 bln ( an additional $3 bln compared to a trade deficit of near $110 bln) after 2011 census data is updated.

The Food Security Act promises just 7 kg of grain but at a give away price of 3, 2, 1 per kg for Rice, wheat and coarse cereal, per person instead of a current PDS cost of 35kgs of grain, and sugar at higher prices, at 25-30% discount to the market(probably 2006 prices, i believe) . 

There are no food grain shortages in the country per se but the BPL card system already in currency would need enhancements to ensure priority families are reached first and spillovers are managed in a targeted fashion for maximum impact without creating new loopholes for siphoning of this giveaway grain for local market distribution.  

Posted via email from The India Investment Post