Cash transfer scheme launched in Karnataka in lieu of ‘Anna Bhagya’

New Delhi, July 10

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The Congress party on Monday announced launching a cash transfer scheme in Karnataka to substitute the “Anna Bhagya Guarantee” of the state government.

Under “Anna Bhagta”, 10 kg of rice free of cost was to be provided to all families in Karnataka who are below the poverty line.

The Congress alleged petty politics played by the Narendra Modi-led government has forced the party to shelve the scheme for the time being.

Congress general secretary, Jairam Ramesh, said the Modi government has played “petty and vindictive politics” on food security for the poor in Karnataka.

Accusing the Modi government of trying to sabotage the Anna Bhagya guarantee, he said the state government has given a befitting reply to Modi government’s design even as it (state government) continues its efforts to get additional rice.

Ramesh said on June 12, Food Corporation of India (FCI) agreed to supply additional rice required for “Anna Bhagya” for which the state government offered to pay at the rate of Rs 34 per kg of the rice.

However, one day later (June 13), the Modi government cancelled the approval while allowing the FCI to continue selling rice at Rs 20 per kg to ethanol producers.

“Congress government in Karnataka will not be shaken in its resolve to implement its guarantee. Therefore, for the time being, it is launching a scheme today that will supply Rs 170 every month to each of the 4.42 crore persons in the state covered by ration card”, Ramesh said.

“This transfer is equivalent to the amount the state government would have paid the FCI had the Modi government not intervened at the last minute and stopped the sale of rice even though there are ample buffer stocks available”, he added.

The Congress leader alleged that after preventing the Karnataka government from purchasing rice from FCI, the Modi government asked the FCI to e-auction rice to private traders with the condition that Karnataka would not buy from them. However, the e-auction has flopped miserably as more than 99 per cent of rice offered for e-auction remains unsold, Ramesh said.

“It is clear that that Modi Government has greater faith in private traders to control inflation than in state governments and the public distribution system”, the Congress leader said.

Ramesh remarked that while the Modi government talks of “cooperative federalism”, it policies smack of “confrontational federalism”.