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Food Stamp Scheme in Sindh under study

KARACHI: The Sindh government is actively considering a proposal of Food Stamp Scheme as envisaged by the Sindh Food Department to benefit the lower tiers of the society.

Proposed to be launched in all the five Divisions of Sindh one an experimental basis, the scheme envisages the supply of one bag of 20 kg net of quality wheat flour to a family at Rs 6 per kg.

The proposal envisages the unloading of 1,000 bags of 100 kg wheat stocks in a district and therefore 21,000 tonnes of wheat would be required monthly whereas annual offtake under the Food Stamp Scheme would be 252,000 tonnes.

The Sindh Food Department is currently bearing a subsidy of Rs 86 per bag of 100 kg and for the Food Stamp Scheme, the subsidy for 252,000 tonnes of wheat would be to the tune of Rs 216.720 million.

The department provides wheat to flour mills at Rs 7 per kg whereas ex-mill price of flour is fixed at Rs 8.50 per kg. Thus, Rs 50 per bag of 20 kg Atta will further be borne as a subsidy, excluding service charge of Rs 0.50 per bag, for the Utility Stores Corporation.

On supply/grinding of 252,000 tonnes of wheat, with 15 percent extraction, 10.710 million bags of 20 kg Atta will be produced and subsidy would be Rs 540.855 million as as such the total subsidy would be Rs 757.575 million.

According to informed sources the scheme would be run by commissioners/deputy commissioners to be declared ex-officio divisional/district administrators.

The beneficiaries of the scheme would be selected by the district administration as per criteria proposed in the action plan.

The beneficiaries would get Atta under the Food Stamp Scheme through the network of the Utility Stores Corporation.

The action plan proposes the publication of Food Stamp Booklets for beneficiaries whose name would be registered in the beneficiary registers. These booklets would be issued to the head of the family. APP