Union Minister for Consumer Affairs, Food and Public Distribution, Railways and Commerce and Industry on Friday held a meeting with Chhattisgarh Chief Minister and told him that Centre will soon release Rs 4,800 crore of food subsidy.

According to a statement issued by the Ministry of Consumer Affairs, Food & Public Distribution, the procurement operations for the Central Pool including quantity to be procured is based on the MoU signed between Food Corporation of India and Chhattisgarh government.

Acceptane of 40 lakh MT of surplus rice in Chhattisgarh during 2020-21 was also discussed in the meeting.

As per the MoU, if any state gives bonus/financial incentive in direct or indirect form, over and above the MSP and if the overall procurement of the state is in excess of the total allocation to the state made by Union government under TPDS/Other Welfare Schemes, such excess quantity will be treated outside the Central Pool and will not be taken over by FCI.

On the issue of shortage of gunny bags, Union government has already permitted state government to utilize used jute bags for procurement of paddy as well as delivery of rice for the Central Pool stocks to be consumed within the state for PDS/OWS.

This permission was given in the month of October 2020, right at the inception of KMS 20-21.