December 10, 2010

India's food ministry seeking increase in grain subsidies

India's food ministry has sought an increase in grain subsidies to INR815.25 billion rupees (US$18 billion), according to a ministry official.

The proposed subsidy bill compares with the ministry's earlier estimate of INR682 billion for the financial year ending March 31, the official said.

Finance Minister Pranab Mukherjee, in his February budget, had allocated INR555.78 billion to help pay for food including rice and wheat. Any additional spending would need to be approved by the nation's cabinet.