Prices rising, govt to increase subsidy on pulses

Admitting that prices of sugar, pulses and vegetables are rising, the government today said it is planning to increase the subsidy for distribution of pulses through ration shops to provide relief to the common man.

The Cabinet Committee on Economic Affairs is expected to soon consider the proposal in raising the subsidy on pulses as part of measures to counter the impact of shortfall in Monsoon rains which is already 22 per cent deficient.

"While the prices of wheat and rice are stable, the prices of sugar, pulses and vegetable are showing an upward trend," the Prime Minister's Office said in a statement which gave an overview of the Monsoon situation and state of preparedness to meet any eventuality.

"A proposal for increase in subsidy for supply of pulses through Public Distribution System to BPL families

is being brought before Cabinet Committee on Economic Affairs by the Ministry of Consumer Affairs, Food and Public Distribution," it said.

In November 2008, the Centre had launched a scheme to supply pulses at Rs 10/kg subsidy through public distribution system (PDS) to Above Poverty Line (APL) and Below Poverty Line (BPL) families. The scheme was discontinued in June 2011.

Pulses production had declined to 17.21 million tonnes in the 2011-12 crop year (July-June) from record 18.24 million tonnes in the previous year and there is a fear that output could fall in Kharif season this year due to deficit monsoon.

The area under pulses is down by 31 per cent at 4 million hectares so far compared with the year-ago period.

According to the government data, the food inflation rose to 10.81 per cent in June from 10.74 per cent in May. In June last year, inflation rate in this category was 7.6 per cent.