The tale begins on April 1, when the Gujarat government implemented the Centre's decision to increase the prices of wheat and rice for those holding above-poverty-line (APL) ration cards while maintaining the old prices for those holding below-poverty-line (BPL) cards. While the latter cards are used by the card-holders, APL cards are rarely used for lifting grains, etc from ration shops; the document has other uses to which it is employed.

Gujarat has given out 33 lakh BPL cards, but receives a quota of wheat and rice from the Food Corporation of India sufficient only for 22 lakh cards (based on the 1991 census). To make up the deficit, the government transfers 15,000 tonnes of foodgrains from the under-utilised APL category to the BPL sector.

The problem, however, is that with APL prices hiked, the government is effectively buying dear and selling cheap. Wheat prices for APL cards were hiked from to Rs 8 a kg and rice to Rs 10, while BPL card prices remain the same at Rs 2 and Rs 3 respectively.

Adding to the problem is the fact that the State provides for a limit of 12.5 kg per card against the Centre limit of 10 kg. The FCI allots grains only according to the central limit, so that's another difference for the state government to make up.

All told, it spells a difference of Rs 50 crores. This will not affect the APL card-holders, nor the BPL card-holders; this burden will have to be borne by the state government.

When contacted, Civil Supplies Minister Jaspal Singh admitted that the State would have to bear the additional burden. ``The BJP Government had promised the poor adequate food at subsidised rates and we are keeping our word, even if the government has to bear the brunt.''

According to Singh, the State required over 29,000 tonnes of foodgrains to service BPL cards; it received 10,000 tonnes from the FCI and 15,000 from the APL quota, leaving a shortfall of about 4,000. With APL prices comparing favourably to those on the open market, the offtake is expected to decrease further. This gradually would render redundant the entire facility of fair price shops for those above poverty line.

However, Singh plans to introduce a system that would, at least partially, offset the loss: A three card system in which the creamy layer would have no subsidy, those below that would receive marginal discounts and BPL cardholders receive maximum benefits. ``In Gujarat, even the richest man has a fair price shop card which he never uses; why should he get subsidies?'' he asked.