Posts Tagged ‘food subsidy’

FCI enjoys Big Food Subsidy also in 2010-11

August 27, 2011 Leave a comment

Centre’s subsidy to the Food Corporation of India (FCI) for obtaining foodgrain surged by 35.11% to Rs 57,925 crore in the fiscal year 2010-11 as compared to Rs 42,873 crore in the financial year 2009-10, Prof KV Thomas, the minister of state for consumer affairs, food and public distribution said in a written reply in the the Lok Sabha.

As per the government data furnished by Thomas, the cost of wheat procurement cost surged by 50.51% to Rs 30,731 crore in 2010-11 as against Rs 20,417 crore in 2009-10. The cost of rice procurement rose by 13.06% to Rs 36,679 crore as compared to Rs 32,440 crore in 2009-10.

Prof Thomas has stated that the cost escalation has been due to numerous factors such as surge in the minimum support price (MSP) of wheat and rice, along with the surge in the quantity of foodgrains to be allocated under numerous schemes.