Food & Civil Supplies (F&CS) Department has clarified that unlike the free ration (rice) provided to beneficiaries under the Priority Household (PHH) and Antyodaya Anna Yojana (AAY) schemes, the ‘tide-over’ scheme operated on a payment basis.
This was stated by F&CS director Chubawati Chang while acknowledging concerns raised by DDCC on alleged “multi-crore discrepancies in the department .
Citing policy guidelines, F&CS Director Chang pointed out that states have the discretion either to pass on the costs associated with food grain procurement, intra-state movement, and handling charges to the recipients, or to bear those expenses themselves.
F&CS clarified that the central government does not contribute financial assistance towards those expenditures. Under this framework, the department stated that it has established a mechanism to secure food grains from the state buffer stock to address critical requirements such as calamity response, and for any exigencies of the society and general public at any given emergency or urgent situations.
The department has clarified that all expenses related to the transportation and handling of food grains under its distribution schemes are fully covered by the recipients. This cost-sharing arrangement significantly reduces the financial burden on the state government.
In addition to this cost structure, the department emphasized its continued oversight of the procurement and distribution processes. It noted that regulatory checks are consistently enforced to maintain transparency and accountability. The department also highlighted its reliance on experienced and reputable suppliers for large-scale procurement, ensuring efficiency and quality in foodgrain distribution across the state.
To enhance the efficiency of the tide-over scheme, the department has introduced comprehensive new guidelines. These include the ongoing enrolment process for General Household (GHH) ration cards, aimed at extending benefits to non-Priority Households (non-PHH) and non-Antyodaya Anna Yojana (AAY) beneficiaries. All eligible citizens may now apply for GHH cards, with the department working to ensure smooth implementation.
The department also recalled the central government’s 2012-13 decision to deregulate the sugar sector by removing the levy on sugar mills. Following this, a revised sugar distribution framework was introduced from June 1, 2013.
Under this model, states choosing to distribute sugar must procure it from the open market via transparent procedures.
While the central government currently allocates sugar only to AAY families at a scale of 1kg per month, the state government has decided to extend this benefit to PHH households as well. This extension aligns with the National Food Security Act and is funded entirely by the state, covering all handling, transport, and dealer commission costs.
Sugar will continue to be distributed to ration cardholders based on demand and on a prepayment basis, the department confirmed.
Following a review by the Centre, sugar distribution under the Public Distribution System (PDS) has been limited to Antyodaya Anna Yojana (AAY) families, with a monthly allotment of 1kg per AAY ration card in participating states. However, aligning with the National Food Security Act, the state government has opted to extend this benefit to Priority Households (PHH) as well.
The Food and Civil Supplies (F&SC) Department confirmed that this expansion does not impose extra costs on consumers, as expenses related to handling, transportation, and dealer commissions are fully covered by the state. Sugar distribution is based on consumer demand and operates on a prepayment model, ensuring flexibility and accountability.
On concerns regarding the limited uptake of Superior Kerosene Oil (SKO), the department noted minimal lifting by government-appointed agencies, attributing this trend to low demand caused by high retail prices set by the Ministry. As a result, allocated SKO quantities often lapse-an outcome the department says reflects market conditions, not administrative inefficiency.
Reaffirming its commitment to transparency and efficiency, the department emphasized ongoing procedural reviews and active engagement with stakeholders to enhance the delivery of essential commodities.
Friday, July 18, 2025