The food ministry will oppose the Kelkar Committee's report, which has recommended heavy cuts in subsidies, ministry sources revealed.

The Kelkar report has recommended that subsidies should be eliminated to stem the dwindling finances. According to the report, half of subsidy on diesel should be eliminated during the current financial year, and the rest in the next fiscal. As for kerosene, the report recommended a cut of 33 per cent in the ongoing subsidy.

The report also argued that the planned food guarantee scheme would enlarge the fiscal deficit problem. It warned that huge subsidies would push the fiscal deficit to an unmanageable 6.1 per cent of the country's gross domestic product (GDP) in 2012-13.

But sources said that the food ministry would convey its opposition to the recommendations to the finance ministry.

The sources said that Congress leadership was eager to rollout the food guarantee scheme as soon as possible as it considered the scheme vital to enhance its image, which has been shattered by soaring prices and several scandals. The sources added that the food ministry was of the view that harsh fiscal measures couldn't be taken on issues which concern the poor.

It may be noted here that the food ministry has already compelled the government to abandon a planned move to increase the price of PDS sugar for BPL (below poverty line) families from Rs 13.50 to Rs 24.