Bharat Atta: Subsidized Wheat Flour Scheme

Synopsis

• In a bid to maintain stability in food prices during the festive season, the Indian government has unveiled a subsidized packaged wheat flour initiative accessible to all consumers.
• Termed “Bharat Atta,” the scheme aims to release a quarter of a million tonnes of state-owned wheat to various cooperative outlets and federations.

Bharat Atta

Distribution Channels: The government has chosen Kendriya Bhandar, a network of cooperative general stores, along with the National Agricultural Cooperative Marketing Federation and National Cooperative Consumers’ Federation, as the primary channels for distributing Bharat Atta.

Reduced Price: Bharat Atta is offered at a reduced price of ₹27.50 per kilogram, which is lower than the earlier rate of ₹29.50 at Kendriya Bhandar.

Expansion: To ensure accessibility, the subsidized flour will be available at Kendriya Bhandar, NAFED, NCCF, government cooperative outlets, and food vans operated by NAFED and NCCF.

Government Support: The government is facilitating this scheme by milling the wheat through firms selected through a tender process, thereby minimizing the milling cost, which is approximately ₹1.80 per kilogram for large wheat millers.

Why such a move?

Free Cereals: PM recently announced that cereals would be provided free of cost to 800 million beneficiaries entitled to subsidized food for the next five years.

Price Controls: The government has implemented various measures such as banning wheat and rice exports, setting a floor price for onion exports, and reducing import duties on pulses to combat rising food prices.

Election Context: These anti-inflation measures come as India faces key assembly elections in five states and a general election in the near future.Challenges in implementation

Cereal Inflation: Despite a significant wheat harvest, India continues to grapple with high cereal inflation, which has persisted for over a year, reaching double digits.

Record Foodgrain Production: The fourth and final round of estimates for the 2022-23 crop output indicates a record high in foodgrain production. However, wheat production slightly decreased from initial estimates.

Positive Outlook: Despite minor fluctuations, wheat production remains higher than the previous year, reflecting a positive outlook for addressing food price concerns.

The government’s subsidized wheat flour initiative, Bharat Atta, exemplifies its dedication to ensuring that the joy of the festive season is not marred by soaring food prices.