Critics say the program would increase food subsidy costs and further bloat the government's fiscal deficit.

WSJ: India Cabinet Clears Food-Security Bill

India lifted most controls over the sugar sector, a step that will likely boost investments in the industry but add to the government's food-subsidy cost.

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It is sold at a higher price than ordinary food, with a subsidy passed back to the farmer.

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Budget plans included tax rises, a drop in real wages and the end of the subsidy on tortillas, the country's staple food.

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The reason for the delay is that the Department for Environment, Food and Rural Affairs (Defra) has introduced a new subsidy payment system in England.

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Food subsidies account for more than 40% of India's total subsidy costs.

WSJ: India Cabinet Clears Food-Security Bill

But Oxfam has been criticised for failing to point out that any reduction in subsidy for farmers would be likely to lead to an increase in the price of food in the shops.

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Obama could have proposed a tax credit that would boost the insurance subsidy for low-wage workers while cutting it for those at the top of the food chain.

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