22. Central Government to allocate required quantity of foodgrains from central pool to State
Governments.—(1) The Central Government shall, for ensuring the regular supply of foodgrains to
persons belonging to eligible households, allocate from the central pool the required quantity of
foodgrains to the State Governments under the Targeted Public Distribution System, as per the
entitlements under section 3 and at prices specified in Schedule I.
(2) The Central Government shall allocate foodgrains in accordance with the number of persons
belonging to the eligible households identified in each State under section 10.
(3) The Central Government shall provide foodgrains in respect of entitlements under sections 4, 5
and section 6, to the State Governments, at prices specified for the persons belonging to eligible
households in Schedule I.
(4) Without prejudice to sub-section (1), the Central Government shall,—
(a) procure foodgrains for the central pool through its own agencies and the State Governments
and their agencies;
(b) allocate foodgrains to the States;
(c) provide for transportation of foodgrains, as per allocation, to the depots designated by the
Central Government in each State;
(d) provide assistance to the State Government in meeting the expenditure incurred by it towards
intra-State movement, handling of foodgrains and margins paid to fair price shop dealers, in
accordance with such norms and manner as may be prescribed by the Central Government; and
(e) create and maintain required modern and scientific storage facilities at various levels.
23. Provisions for funds by Central Government to State Government in certain cases.—In case
of short supply of foodgrains from the central pool to a State, the Central Government shall provide funds
to the extent of short supply to the State Government for meeting obligations under Chapter II in such
manner as may be prescribed by the Central Government.