Odisha government seeks release of Rs 10,333 crore food subsidy bill

BHUBANESWAR: With the pending food subsidy bill of Odisha rising to Rs 10,333 crore, the State government on Wednesday urged the Centre to release the money immediately to bail out the State paddy procuring agency from financial stress.

Expressing concern over delayed release of food subsidy and non-evacuation of surplus rice from the State, Food Supplies and Consumer Welfare Minister Ranendra Pratap Swain wrote a letter to Union Minister for Consumer Affairs, Food and Public Distribution Piyush Goyal requesting him to resolve the pressing issues.

He said the Odisha State Civil Supplies Corporation, the designated agency for procurement of paddy for the State government, is to receive Rs 7,931.90 crore as provisional subsidy and advance subsidy of Rs 2,402.19 crore taking the total subsidy claim to Rs 10,334 crore by the end of April 2022. 

"The additional interest incurred till March 31, 2022 because of delay in release and short release of subsidy comes to around Rs 5,454.67 crore which remains unrecouped. The Centre should pay the interest component failing which the State will bear the additional cost," Swain said.

In the 2021-22 kharif marketing season (KMS), out of 52 lakh tonne of procurement of rice, the State’s consumption will be about 39 lakh tonne under public distribution system (PDS) and other welfare schemes. 

The State is likely to have a surplus of 13 lakh tonne of rice which should be lifted immediately for smooth procurement operation. 

In addition, the State government has taken all necessary steps to deliver five lakh tonne of fortified parboiled rice to FCI as per target given by Department of Food and Public Distribution in the Ministry of Consumer Affairs, Food and Public Distribution.

The State is in a position to deliver higher quantity of fortified parboiled rice and DFPD has been requested to give additional target of fortified parboiled rice during KMS 2021-22.