29/07/2008 (The Hindu), Hyderabad - Food and Agriculture Minister Sharad Pawar on Monday launched the sale of palmolein oil through ration shops at subsidised rates.

Under the programme, all white ration card holders would get one litre of palm oil at a subsidised rate of Rs 45 against the market price of nearly Rs 65.

"Andhra Pradesh was the first state to come forward and utilise the scheme. We have decided to launch it here," Pawar told reporters.

The Centre would import 1.25 lakh tons of palmolein per month for distribution among 23 states, he said adding that the state would get a quota of 20,000 tons per month.

The Union Government would bear a subsidy burden of Rs 1,500 crore per year on account of this scheme, Pawar said.

While the Centre would supply palm oil to the state at Rs 54 per litre, the state government would provide a further subsidy of Rs 9 per, the Chief Minister Y S Rajasekhara Reddy, who was also present on the occasion said.

The scheme, aimed at providing relief to common people burdened by the soaring prices of essential commodities, would benefit about two crore families in the state.

This would be in addition to the supply of subsidised rice at Rs two per kg to the Below Poverty Line (BPL) families through the fair price shops.