The Karnataka government has announced that starting February, Below Poverty Line (BPL) families will receive an additional 5 kg of rice instead of cash under the Anna Bhagya guarantee scheme. Food and Civil Supplies Minister KH Muniyappa confirmed the decision on Wednesday, February 19, stating that the Union government has now committed to providing the required quantity of rice to the state. An official order was issued later in the day.
Since July 1, 2023, the Karnataka government had been providing only 5 kg of rice against its promise of 10 kg, as the Union government had refused to supply rice under the Open Market Sale Scheme. To compensate, the Congress government started disbursing Rs 170 per beneficiary per month as a direct bank transfer (DBT), based on a rate of Rs 34 per kg. Now, with the Union government agreeing to sell rice to the state at a fixed price until June, Karnataka has decided to resume distributing rice instead of cash.
Minister Muniyappa stated that Union Minister Pralhad Joshi had “orally assured” the Karnataka government that it would receive as much rice as needed beyond June as well. According to him, this would save the state government between Rs 150-190 crore per month.
The Congress government had initially planned to distribute 10 kg of rice per person under Anna Bhagya, one of its five key guarantees in the 2023 assembly elections manifesto. However, shortly after coming to power, the Union government refused to supply the required 27.48 lakh metric tonnes annually (2.29 lakh metric tonnes per month).
“The Union had adequate rice stocks but did not give us the required 27.48 lakh metric tonnes per year. To stand by our word, we transferred Rs 170 in lieu of 5 kg of rice through DBT to each beneficiary,” Muniyappa said.
The Food and Civil Supplies Minister explained that paddy-growing states such as Telangana, Andhra Pradesh, Chhattisgarh, Punjab, and Haryana produce rice at a Minimum Support Price (MSP) of Rs 40-42 per kg. Despite this, he said, the Union provides rice to states at a subsidised rate. Currently, the Food Corporation of India (FCI) has agreed to supply rice to Karnataka at Rs 22.5 per kg until June, after which the price may change under the Open Market Sale Scheme. The state government has requested Union Minister Joshi to ensure a continuous supply of rice for at least two years to sustain the scheme.
The issue of rice supply from the FCI became a point of contention in June 2023. Chief Minister Siddaramaiah accused the Union government of taking a “political decision” to stop selling rice and wheat to state governments. He alleged that though the FCI had agreed to supply Karnataka with the necessary rice for Anna Bhagya on June 13, 2023, it reversed the decision the next day after the Ministry of Consumer Affairs, Food, and Public Distribution discontinued sales to state governments—except for North-Eastern and Hilly states or those facing law and order issues or natural calamities.