Cash instead of rice as ‘Anna Bhagya’ scheme goes awry

Bengaluru: On Wednesday, the Karnataka Cabinet made a decision regarding the ‘Anna Bhagya’ scheme, opting to provide cash instead of the five kilograms of rice to beneficiaries until the state government successfully procures rice from alternative sources.

This move, aimed at sustaining the Congress’ pre-poll promise, will see the government transfer funds to Below Poverty Line (BPL) cardholders based on the prevailing market price of five kilograms of rice. It is estimated that this initiative will cost the government approximately Rs. 750-800 crore per month.

Under the revised system, the designated amount will be disbursed to the head of the BPL cardholder’s family, with each individual cardholder receiving a monthly sum of Rs. 170. Explaining the rationale behind this decision, Food and Civil Supplies Minister KH Muniyappa stated that the government came to this decision as it had earlier promised to implement the scheme on July 1. He also went on to say that this arrangement will continue till the government procures rice from other sources.

The funds are expected to be transferred to beneficiaries in July, facilitating their ability to purchase food grains of their choice. The state government had initially approached the Food Corporation of India (FCI) for rice supplies, but the request was declined. Consequently, the Congress government in Karnataka had even reached out to central agencies such as the National Agricultural Cooperative Marketing Federation of India (NAFED) to secure the required rice quantities.

Chief Minister Siddaramaiah blamed the central government for refusing to provide rice. Siddaramaiah said that despite their willingness to pay the market price, the central government is unwilling to supply rice, thereby obstructing their scheme and adversely affecting the underprivileged. As a result, the state government will substitute rice with monetary assistance. For a family of four categorized as Below Poverty Line, each member will receive Rs 170.

It is noteworthy that out of the 10 kilograms of rice initially promised by the Congress party, five kilograms were to be sourced from the central government. However, the state government was unable to procure the remaining rice quantity before the deadline, prompting the decision to transfer funds to BPL cardholders instead.