The upcoming general elections have changed the dynamics of politics in the country. As the UPA Government has brought an Ordinance on food security, the Congress Government in Karnataka led by Chief Minister Siddaramaiah is all set to introduce Rs1 per kg rice scheme from July 10.
The rice politics which is seen by the Congress as a major game-changer in the election has set Karnataka Chief Minister Siddaramaiah to take on this ambitious project as promised in the election manifesto. It would cost Rs4,300 crore per annum to the exchequer.
Karnataka’s Rs1 per kg rice scheme which was announced by CM Siddaramaiah, a coronation gift to the State on the first day of assuming office, has come in for severe criticism by his own party leaders apart from the Opposition and bureaucracy. According to the rice scheme, each family would get 30 kg of rice at Rs1 per kg. It would benefit 90.17 lakh families.
According to Karnataka Food, Civil Supplies and Consumer Affairs Minister Dinesh Gundu Rao, the initiative would cost the exchequer Rs4,200-Rs4,300 crore this fiscal by way of subsidy.
He said, “Karnataka gets 1,78,000 tonnes of rice from the Centre every month and needs additional 1,07,000 tonnes to implement the initiative which would cost the exchequer Rs4,200-Rs4,300 crore this fiscal by way of subsidy”. The State Government is also planning to procure rice from Chhattisgarh which has a bumper crop. The Government plans to buy entire additional requirement from Chhattisgarh.
Rao told reporters that Karnataka has sought an additional 10,000-15,000 tonnes from the Centre. He said the State’s entire additional requirement can be met by Chhattisgarh which has a “bumper stock”.
According to sources, the State Government can buy rice from Chhattisgarh at Rs22.90 per kg but with transportation cost it would be Rs26-27. In addition, the Government has already issued notification facilitating buying from other agencies.
According to Government sources, nearly one crore households would benefit from this scheme. Rao said, “There is sufficient stock. let there be no doubt or apprehension over the implementation. There is financial support. There won’t be any problem in its implementation.”
Dr R Balasubramaniam, who submitted an elaborate report on PDS to the Karnataka lokayukta, feels it is going to be a daunting task for the Government to distribute the grain through existing system effectively. He feels the Government would face problem of bogus cards as well as more than five lakh families not been included would pose a problem to the existing PDS system.
Many have also raised questions about propriety in giving subsidised rice to non-rice eaters. According to Professor Narasimappa, as Karnataka has different food habit types like eating jowar and ragi the Rs1 rice scheme must include other grains depending upon consumption pattern.
Many feel the political parties must move towards sustainable politics instead of making people dependent as welfare politics world over has failed. According to Professor RS Deshpande, Director of Bangalore-based Institute of Social and Economic Change (ISEC), it is certainly a populist scheme. He said, “This is a populist scheme. It will certainly have impact on the price of rice in the market. Nobody is bothered about sustainable politics. As we have seen many schemes, it will collapse in a few years.”
Even though the rice politics has its origin in Tami Nadu, the BJP Government in Karnataka gave every BPl family 20 kg of rice at Rs3 per kg. The Siddaramaiah-led Congress Government in Karnataka is continuing the scheme ahead of general elections.
A Congress leader on the condition of anonymity told The Pioneer that the Rs1 per kg rice scheme aimed at elections and also the Chief Minister wants this to be a game-changing agent in the upcoming elections.
Many economists argue that this scheme will adversely affect labour market and upset the supply demand. In 2011-12, the cost of subsidising food was Rs790 crore. This year, it’s expected to be close to a staggering Rs5,000 crore. Even though the Chief Minister has been saying he would cut wasteful expenditure, many are skeptical about revenue moping.