Centre will roll out within two months the direct cash transfer of food subsidies on a pilot basis in six Union Territories through the public distribution system. Briefing newsmen on the outcome of the State food ministers conference that concluded in New Delhi today, Food and Public Distribution Minister, K.V Thomas said, the Centre has also sought the views of state governments on the alternate model. He said, the pilot scheme in the UT's will be tested in the meantime.

The alternative model involves movement of foodgrains at near market prices up to the ration shops levels and transfer of food subsidy to the beneficiaries bank accounts so that food subsidy reaches the intended beneficiaries and is not cornered by vested interests. Mr. Thomas said, the move would go long way in curbing leakages of foodgrains meant for ration shops.

The government's food subsidy given to run the public distribution system (PDS) is estimated to be 75,000 crore rupees in the current fiscal, against 72,823 crore rupees in 2011-12.

Mr. Thomas said, the Centre has asked the States to shore up their storage facilities to meet the requirements following the passage of the Food Security Bill in Parliament. Mr. Thomas said, the Cabinet has approved full computerisation of Public distribution system under which Central assistance will be given to states on a fifty fifty ratio, while it would be Ninety is to ten ratio for the North eastern region.