Tamil Nadu govt. decides to keep special PDS intact

Tamil Nadu government continues special PDS despite rising subsidy bill, keeping prices unchanged for over 15 years.

Despite the mounting subsidy bill, the State government has decided to continue with the special public distribution system, under which “tur dhal” and palmolein oil are provided to ration cardholders every month. 

As per an estimate, the government is incurring annually around ₹2,865 crore for palmolein oil and ₹1,900 crore for “tur dhal.”  The annual overall food subsidy bill comes to ₹10,500 crore.

For every kg of “tur dhal” supplied to ration cardholders under the special PDS, the government’s subsidy amounts to ₹79.15 and, for every litre of  palmolein oil, it is ₹118.91, after collecting ₹30 and ₹25 from the cardholders. The selling prices under the PDS have remained intact for over 15 years.

These days, the rates at which the government procures the two commodities are printed on receipts issued by fair price shops. According to a receipt given to a cardholder in Vandalur, on the outskirts of Chennai on Wednesday, the rates mentioned were ₹109.15 and ₹143.91. Every month around 20,000 tonnes of “tur dal” and 2 crore litres (pouches) of palmolein oil are procured by Tamil Nadu Civil Supplies Corporation.

To give an idea of the increase in the price of edible oil, a perusal of the data with the Price Monitoring Division of the Department of Consumer Affairs in the Union government reveals that the average price of palm oil in the retail market in southern States of the country was ₹95.42 exactly a year ago.  Now, it is ₹144.19.

Given the degree of sensitivity associated with the PDS and with the Assembly election slated for next year, the DMK top brass has killed the idea of effecting a hike in the selling prices or making any other change in the existing arrangement, sources said.