India food subsidy law to cost $27.1 billion

A proposed new food security law in India guaranteeing subsidised grains for the poor would cost the country an estimated 1.1 trillion rupees (S$27.1 billion), an official said on Wednesday. -- PHOTO: AP

NEW DELHI - A PROPOSED new food security law in India guaranteeing subsidised grains for the poor would cost the country an estimated 1.1 trillion rupees (S$27.1 billion), an official said on Wednesday.

The senior food ministry official, speaking to Dow Jones Newswires on condition of anonymity, said the government planned to introduce a bill in the monsoon session of parliament, which begins on Aug 1.

'It will be politically prudent for the government to get it (the bill) passed before Christmas,' he said, adding that it would help bolster support for the government among the poor at a time of surging food prices.

The cost of food is up nearly 10 per cent over the year, according to the latest inflation figures, and some months have seen a spike of nearly 20 per cent compared to a year ago.

Last December, there were demonstrations about the price of onions, which are a staple in Indian cooking.

Under the current draft of the law, anyone living under the official poverty line would be guaranteed 7.0kg (15.4 pounds) of subsidised grain. -- AFP