Central Issue Price

Central Issue Price

Context: The Union Minister for Consumer Affairs, Food and Public Distribution assured yesterday of no change in CIP amidst concern after the Economy survey talked of revision in it.

Concept:

• The CIP is the price at which the government makes available food grains for the beneficiaries of the National Food Security Act, 2013 and other welfare schemes to the states from the central pool. Ex- Under NFSA CIP is at Rs 3, Rs 2 and Re 1 for rice, wheat and coarse grains respectively.
• Economy Survey 2020-21 said that the food subsidy is becoming “unmanageably large” and the revision is needed for the Central Issue Prices (CIP) of food grains released from the central pool as it has not been changed for long.
• The Centre procures food grains from farmers at a minimum support price (MSP) and sells it to the states at central issue prices. It is responsible for transporting the grains to godowns in each state.
• The states are responsible for transporting these to Fair price shops and fixing retail price to be charged at the fair price shops.