India considers free foodgrain

The Indian Government is considering a free handout of wheat and rice to those living below the poverty line in order to dispose of a mounting surplus in government warehouses.

The Indian minister for consumer affairs, Shanta Kumar, told the BBC that there was now a surplus of sixteen million tons of wheat and rice - and it was costing $90 dollars a year to store it.

Indian officials say the proposed scheme would benefit more than 300m people.

From the newsroom of the BBC World Service