Free foodgrains scheme for poor extended by 5 yrs

New Delhi: The Central government will provide free food grains to about 81.35 crore beneficiaries under the ‘Pradhan Mantri Garib Kalyan Anna Yojana’ (PMGKAY) for a period of five years with effect from 1st January 2024. The scheme will cost the government an estimated cost of Rs. 11.80 lakh crore.

The decision was taken in the Cabinet meeting led by the Prime Minister on Wednesday. The scheme would provide nationwide uniformity in the delivery of food grains free of cost in all States/UTs through a network of over 5 lakh ‘Fair Price Shops’ under a common logo. The free food grains will concurrently ensure uniform implementation of portability under the One Nation One Ration Card (ONORC) across the country and will further strengthen this choice-based platform. In December last year, the Centre decided to subsume the PMGKAY, which was launched in 2020 to provide additional foodgrains free of cost, with the National Food Security Act (NFSA).

Under the NFSA, up to 75 per cent of the rural population and 50 per cent of the urban population are being covered under two categories — Antyodaya Anna Yojana (AAY) and priority households. While AAY households, which constitute the poorest of the poor, are entitled to 35 kg of foodgrains per family per month, priority households get 5 kg per person per month.

The ministry said that the distribution of foodgrains free of cost is being done in order to remove the financial burden of the poor beneficiaries and to ensure nationwide uniformity and effective implementation of the NFSA (2013).

It further stated that the decision was taken to strengthen the provisions of NFSA in terms of accessibility, affordability and availability of entitled foodgrains for the poor. The move was to ensure effective and uniform implementation of the NFSA (One Nation -One Price -One Ration), the ministry added.

“The Central Government fully bears the food subsidy for procuring, allocating, transporting and delivering the foodgrains to the designated depot in the States with the help of the two food subsidy schemes, namely, Food Subsidy to FCI and Food Subsidy to Decentralized Procurement (DCP) States,” the ministry informed.

These two food subsidy schemes have been subsumed as Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for effective and uniform implementation of the NFSA as also to strengthen the food security network in the country.” Under this scheme, free foodgrains are being distributed through Targeted Public Distribution System (TPDS) from 1st January 2023.

The additional cost of making foodgrains free of cost to the NFSA beneficiaries is being borne by the Government of India,” the statement said. The NFSA 2013 provides for coverage of up to 75% of the rural population and up to 50% of the urban population, which as per Census 2011 comes to 81.35 crore persons.

“The Coverage under the Act is substantially high to ensure that all the vulnerable and needy sections of the society get its benefit. At present, against the intended coverage of 81.35 crore, 80.48 crore beneficiaries are identified by the States/UTs under the Act for distribution of free foodgrains under the PMGKAY,” the ministry said.