Roti to be available at Re 1: Punjab govt likely to launch another sasti roti scheme

[LahoreEstate]

* Officials say over 20% of subsidised flour reportedly ‘hidden’ by tandoors
* Industries Department says new scheme unfeasible
* Pundits say move designed to increase PML-N political clout

By Anwer Hussain Sumra

LAHORE: The Punjab government is likely to launch a Rs 28 billion scheme of sasti roti (cheap bread) with a plan to provide roti at half the rate (one rupee) of the current scheme of Rs 2 per roti.

According to sources in the Punjab Civil Secretariat, the Industries department has submitted a summary for approval in this regard on the desires of Punjab Chief Minister Shahbaz Sharif and Chief Secretary Javed Mehmood. They claimed the PML-N had decided to take the initiative as it would add to their political clout in the province and would endear them to the needy masses, whose vote they may require.

The Punjab government had announced a Rs 160 Annual Development Programme (ADP) in the current fiscal year to initiate and execute more than 3,000 development schemes. Of the total earmarked amount, the government could utilise only Rs 40 billion until the last week of this month, which is 25 percent of the earmarked amount. The government has decided to provide subsidy on roti to gain approval from the poor of society and provide them with cheap food.

In the ongoing sasti roti scheme of Rs 2, the Punjab government was providing 60,000 flour bags of 20 kilogrammes to more than 12,000 tandoors (clay ovens) every day. The government had earmarked Rs 7.5 billion to continue the subsidy provided to the tandoors until June 30, 2009. The government was providing a Rs 165 subsidy on each bag.

Pilferage: The sources said that over 20 percent of the subsidised flour was reportedly being hidden by tandoor owners. There is no regulatory mechanism to check the pilferage of subsidised flour in the open market. To counter this practice, the government has decided to provide flour in coloured bags, the sources said. In case of roti at Re 1, the government would have to provide a subsidy of Rs 330 on each bag, they said.

Unfeasible: In a note for the chief secretary, the Industries department observed that Re 1 roti was not feasible. Therefore, if the government was committed to launching it, it should start the scheme as a pilot project initially in Lahore to get feedback, the note said.

The scheme should be started after removing all loopholes present in ongoing sasti roti scheme, the department said, adding that all stakeholders should be taken into confidence as the government might have to provide additional money along with the subsidised four to tandoor owners in the to-be-introduced scheme.

The new scheme would become part of the budgetary support and would become a permanent liability on the government, an official concerned said. He said the government would not be able to afford such a subsidy if it became permanent.

Pundits: Political pundits said the PML-N was willing to risk the financial loss for the political advantage. Industries Secretary Tahir Raza Naqvi confirmed that this move was under consideration in brainstorming sessions.

http://www.dailytimes.com.pk/default.asp...009_pg13_1