CM Siddaramaiah on Wednesday suggested the Union government's decision came a day after the FCI agreed to sell rice to Karnataka.
Chief Minister Siddaramaiah lashed out at the Union Government for halting supply of rice and wheat of state governments on Wednesday. (supplied)
The Siddaramaiah-led Karnataka government’s ambitious Anna Bhagya scheme seems to have hit a roadblock, with the Narendra Modi-led Union government ordering the Food Corporation of India (FCI) to discontinue the sale of food grains to states under the open market sale scheme (domestic).
The state government has scheduled the launch of the Anna Bhagya scheme — one of the five guarantees the Congress had made to the voters — on 1 July.
Terming the Union government’s decision anti-poor, Siddaramaiah on Wednesday, 14 June, said it was aimed at curtailing the Congress government’s Anna Bhagya scheme.
“The Union government should not have politicised this (scheme). A day after the FCI agreed to supply the required rice to Karnataka, the government took this anti-poor stand. This is an anti-poor government,” he fumed.
The Congress, in the run-up to last month’s Karnataka Assembly elections, assured 10 kg of rice to the Below Poverty Line (BPL) and Antyodaya card holders under the Anna Bhagya scheme if it came to power.
Winning by a landslide, the party formed the government and put its stamp of approval on this and the other four poll “guarantees”.
The chief minister said that the state government would require 2.28 lakh metric tonnes of rice every month, costing ₹840 crore, to implement the scheme.
In a bid to moderate the market prices of rice and wheat, the Union government directed the FCI to liquidate wheat and rice under the open market sale scheme (domestic) to private parties from the Central pool and discontinue the supply of both food grains to states.
In a letter addressed to FCI on 13 June, the Union government said 15 lakh metric tonnes from Central pool stock could be offered to flour mills, private traders, bulk buyers, and manufacturers of wheat products through e-auction to bring down the increasing prices of wheat.
Karnataka CM @siddaramaiah makes big allegation against Union govt led by @narendramodi.
@CMofKarnataka accuses Union govt of stalling sale of rice by FCI to Karnataka which was to be procured for ‘Anna Bhagya’ scheme. Says move comes after FCI already approved sale under OMSS. pic.twitter.com/Wc6MGG5qPT
— Anusha Ravi Sood (@anusharavi10) June 14, 2023
“The FCI may liquidate rice under OMSS(D) to private parties from the Central pool stock as per the requirement to moderate the market prices,” the order said.
While discontinuing the sale of wheat and rice under OMSS(D) to state governments, the Centre clarified that it would continue this sale to the North-Eastern states, hilly states, and those facing law and order situations and natural calamities “at an existing rate of ₹3,000 per quintal”.
Siddaramaiah claimed that the FCI officials agreed to supply 2.8 lakh metric tonnes of rice to Karnataka after the state approached the corporation on 9 June.
He read this out from an official letter. A copy of the letter is with South First.
“A day after the Cabinet meeting, we not only held talks but also wrote a letter to the FCI on 9 June for the supply of 2.28 lakh metric tonnes of rice to Karnataka to implement Anna Bhagya Yojana,” Siddaramaiah told reporters on Wednesday.
“Responding to our letter on 12 June, the FCI said it would supply the demanded rice to the state. It also agreed to supply rice at ₹3,400 per quintal and a transportation charge of ₹2.6 per km,” the chief minister added.
The FCI, in fact, wrote two letters to Karnataka.
In the first letter dated 12 June, it agreed to supply 2,08,425.750 metric tonnes of rice, while in the other letter, it approved the supply of 13,819.485 metric tonnes of rice in July.
Siddaramaiah said the rice supply would cost ₹36 per kg to the state exchequer. “We require ₹10,092 crore per year to implement this ambitious scheme,” he noted.
Karnataka was set to purchase the rice from FCI at a pre-determined cost that was applicable to all states.
“On the FCI’s promise, we announced the launch date. Despite having 7 lakh metric tonnes of rice in stock with the FCI, the Union government discontinued the supply of rice and wheat to the states. What is the intention of the Union government?” he asked.
Following the Centre’s directive to the FCI, Karnataka approached other states on Wednesday in a bid to keep up with its promised date of delivery for Anna Bhagya.
The state turned to the Telangana, Chhattisgarh, and Punjab governments for rice.
“The Punjab government has conveyed that it doesn’t have sufficient stocks. The Chhattisgarh government assured us it would supply rice, and would announce their final decision at the earliest,” said Siddaramaiah.
He is also sending Minister for Food and Civil Supplies KH Muniyappa to hold talks with the Telangana government.
“I also spoke with the Telangana chief minister. Minister Muniyappa will fly to the neighbouring state tomorrow and is scheduled to hold talks with the government,” said Siddaramaiah on Wednesday.
Criticising the BJP-led Union government, Siddaramaiah said: “What should we call the BJP for this act? Anti-poor? They are anti-poor. It has enough stock, but is not providing rice to Karnataka.”
He continued: “We are buying food grains at the predetermined cost and not free of cost. We will try to implement the scheme. If the implementation of Anna Bhagya is delayed, the Union government is responsible.”
Asked whether the state government would participate in the auction, Siddaramaiah said: “We cannot participate in the auction/tender as it is for private parties and the cost will be huge.”
He added: “If the FCI directed us to hold talks with the Union government, we would have approached it. The FCI agreed to supply rice. Despite the political conspiracy by the Modi government, we will implement the scheme.”
While Chief Minister Siddaramaiah fumed at the Union government, BJP leaders in Karnataka mocked the Congress government.
Some even personally attacked Siddaramaiah, saying he was giving excuses instead of implementing the scheme as promised.
Throughout the election, you consistently emphasised the importance of walk the talk and utilised the opportunity for free publicity. Yet, now you seem to be accusing the Central government of engaging in political tactics within the free rice scheme. @siddaramaiah (1/4)
— Sunil Kumar Karkala (@karkalasunil) June 14, 2023
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