Food corporation’s subsidy rose to 35 percent in 2010-11: Thomas

August 23rd, 2011 - 6:28 pm ICT by IANS  

New Delhi, Aug 23 (IANS) The government’s subsidy to the Food Corporation of India (FCI) for procuring foodgrain rose by 35.11 percent to Rs.57,925 crore in 2010-11 against Rs.42,873 crore in 2009-10, parliament was informed Tuesday.

“As per revisited estimates prepared by FCI, the subsidy to be incurred by FCI in the financial year 2010-11 will be 35 percent more than that incurred in 2009-10,” K.V. Thomas, the minister of state for consumer affairs, food and public distribution said in a written reply in the the Lok Sabha.

According to the data furnished by Thomas, the wheat procurement cost increased by 50.51 percent at Rs.30,731 crore in 2010-11 as compared to Rs.20,417 crore in 2009-10.

The cost of rice procurement increased by 13.06 percent at Rs.36,679 crore as against Rs.32,440 crore in 2009-10.

Thomas said that the cost escalation was due to several factors like increase in the minimum support price of wheat and rice, coupled with an increase in the quantity of foodgrains to be allocated under various schemes.

Related Stories

Tags: , , , , , , , , , , , , , , ,

Posted in Business |