New Delhi: The Government of India has allowed states to collect foodgrains on credit from the Food Corporation of India, for a period of three months.
This has been done to ensure adequate supply of foodgrains to the public, the office of Finance Minister Nirmala Sitharaman announced on Twitter, at a time when virtually the entire country is in a lockdown due to the spread of the coronavirus.
The decision was taken on a proposal moved by the Department of Food and Public Distribution, under the Ministry of Consumer Affairs, Food and Public Distribution.
The financial assistance will ensure that states do not face any cash constraints in distributing foodgrains to those in need, the government said.
To ensure adequate supply of foodgrains to the public and financially assist the State Govts, Department of Expenditure, @FinMinIndia has agreed to the Food & Public Distribution Department's proposal that foodgrain for 3 months can be lifted by States/ UTs on credit from FCI.
— NSitharamanOffice (@nsitharamanoffc) March 23, 2020
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Relief for lowest income strata
The relief comes at a time that many states like Kerala, Punjab and Delhi have announced relief packages for the poorest sections of society, to protect them from the disruption in economic activity arising out of the spread of COVID-19 in India, and the complete lockdowns announced by the states to curb its spread.
The informal economy has been hit the hardest, with many people belonging to the lowest income strata losing their jobs.
The government has already announced that beneficiaries under the public distribution system can collect their six-month quota of foodgrains in one go, as it looks to ensure adequate food supply to people who have lost their daily livelihoods.
Ram Vilas Paswan, the minister for consumer affairs, food and public distribution, had pointed out the government has more than adequate foodgrain supply. The total foodgrain stock (wheat and rice) with the Centre was at 646 lakh tonnes, as against a requirement of 210 lakh tonnes as of April 2020, he had said.
1अप्रैल 2020 तक PDS के माध्यम से दिए जाने वाले अनाज में चावल 135.8 लाख टन और गेहूं 74.6 लाख टन की आवश्यकता है। कुल 210.4 लाख टन अनाज की जरूरत है जबकि अभी हमारे पास कुल स्टॉक 646.09 लाख टन है। मतलब हमारे पास अनाज का 435.69 लाख टन अतिरिक्त स्टॉक मौजूद है। 1/3 @narendramodi
— Ram Vilas Paswan (@irvpaswan) March 18, 2020
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Measures for contract workers
The government has also come to the aid of contractual labour and outsourced staff working for it, by taking steps to ensure their wages are not deducted because they are unable to attend work.
The finance ministry has issued instructions that this period will be declared as “on duty” and wages will be paid accordingly.
“Due to social distancing and isolation measures to contain spread of COVID-19, there is a likelihood of number of contractual labour & outsourced staff working for Govt of India being unable to attend work, resulting in deduction in wages, thus causing hardship to them,” the office of Sitharaman tweeted.
Due to social distancing and isolation measures to contain spread of COVID19, there is a likelihood of number of contractual labour & outsourced staff working for Govt of India being unable to attend work, resulting in deduction in wages, thus causing hardship to them. (1/2) pic.twitter.com/fivRbENiPo
— NSitharamanOffice (@nsitharamanoffc) March 23, 2020
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