New Delhi, Feb 26 (PTI) The Centre on Friday said it will shortly release Rs 4,800 crore as food subsidy to Chhattisgarh.

This was informed by Piyush Goyal, Minister for Consumer Affairs, Food & Public Distribution, Railways and Commerce & Industry to the Chhattisgarh Chief Minister in a meeting on Friday, an official statement said.

The Centre also capped the quantity of rice to be procured from Chhattisgarh for the central pool at 24 lakh tonnes, which is the same as the previous year.

"Regarding release of admissible amount of food subsidy to the State, the claims received from the State Government have been processed and approximately Rs 4,800 crore will be released shortly," it added.

In the meeting, a discussion also held regarding the acceptance of 40 lakh tonnes of surplus rice in the state during KMS 2020-21.

It was clarified that the procurement operations for the central pool are solely based on the MoU signed between the Centre, Food Corporation of India and the state government concerned.

As per the MoU, if any state gives bonus/financial incentive in direct or indirect form, over and above MSP and if the overall procurement of the state is in excess of the total allocation to the state made by the Centre under PDS/other welfare schemes, such excess quantity will be treated outside the central Pool and will not be taken over by the FCI.

"During KMS (Kharif marketing season) 2020-21, media campaign with photograph of Hon'ble CM detailing an indirect incentive scheme of offering Rs 10,000 per acre to the farmers under Rajiv Gandhi Kisan Nyay Yojna (RGKNY), which is similar to bonus on procurement of paddy, has been brought to notice," the statement said.

Accordingly, the quantum of rice to be procured from Chhattisgarh for the central pool has been capped at 24 Lakh tonnes, which is equivalent to the quantity allowed in previous years, it added.

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