Karnataka BPL card holders to get cash in lieu of 5 kg rice

Unable to source rice for its flagship Anna Bhagya scheme, the Siddaramaiah-led government in Karnataka decided on Wednesday to credit money to beneficiaries’ accounts in lieu of 5 kg rice. The decision comes even as the government is under fire from the Opposition BJP over the scheme promised in the Congress’ poll plank.

A decision to this effect was taken in the state Cabinet meeting. “We had promised implementation of the scheme from July 1. We are keeping our word,” Food and Civil Supplies Minister K H Muniyappa told reporters here, blaming the Union government for not selling rice in the open market despite having stocks. The state was forced to come up with an alternative because of the Centre’s vicious politics, he alleged.

Beginning July 1, BPL card holders, who qualify for Anna Bhagya scheme, will get money worth 5 kg rice at Rs 34 a kg. This is the price at which the government usually procures rice from the Food Corporation of India (FCI).

Read | Explained | A look at how Karnataka's Anna Bhagya issue has played out so far

This means that the government will credit Rs 170 per head.

For instance, if a household has three members registered in the BPL card, it will get Rs 510 a month. The money will be credited to the account of the card holder.

This temporary arrangement will continue till the government procures adequate rice to fulfil the promise of 10 kg rice under the scheme. Meanwhile, the government will soon call for tenders for rice in which any eligible institution can take part.

Since 95 per cent of the beneficiaries have already completed their e-KYC, there will be no problem in identifying the bank accounts of the beneficiaries, added Law and Parliamentary Affairs Minister H K Patil.

Other grocery items

“Families will now have the liberty of purchasing dal, ragi, jowar, oil or any other grocery items of their choice with this money,” he pointed out.

Slamming the Congress government, former Chief Minister Basavaraj Bommai said, “The Congress government promised 10 kg rice and they have to give it. If not, the BJP will launch a protest as announced earlier. One kg of rice costs Rs 50-Rs 60 in the market. The government is now saying they will give Rs 34 a kg. This means are getting only 2.5 kg as against the promised 5 kg. With every promise, the Congress is going back on its word.”

Karnataka has 1.2 crore BPL card holders, including Priority House Holds (PHH) and Antodaya cards, covering a population of 4.42 crore population.

2.28L tonnes needed

The state government needs about 2.28 lakh tonnes of rice to give 5 kg rice to the beneficiaries under the scheme.

The union government is already providing 5 kg under the National Food Security Act (NFSA). This will cost the state exchequer Rs 800 crore a month, according to the minister.

Meanwhile, Karnataka has about 14 lakh BPL cards in excess to the Centre’s target for the state.

The state government will have to chip in its own money to give rice to these card holders.

The government needs 20,000 tonnes of rice to provide the minimum 5 kg rice guaranteed under the National Food Security Actto these beneficiaries.

“Since this is a small amount, we will be able to get it from any of the central agencies,” an official from the departrment of Food and Civil Supplies told DH.

For this, the government will need about Rs 65 crore a month.