NEW DELHI: The Centre on Wednesday announced an extension of the free foodgrain scheme — Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) — for five years till December 2028, with the overall subsidy pegged at Rs 11.8 lakh crore.
The scheme entails monthly provision of 5 kg foodgrain to 81.3 crore poor beneficiaries. It also includes supply of 35 kg grains to every family covered by the Antyodaya scheme.
Prime Minister Narendra Modi had announced the extension of the scheme for five years, which was cleared by the cabinet late Tuesday.While the subsidy payout under the scheme for the current calendar year (2023) is pegged around Rs 2 lakh crore, the government has provided a little extra budgeting for a 7-8% annual increase in minimum support price (MSP) and other costs. I&B minister Anurag Singh Thakur said the government’s priority is to ensure every poor citizen gets the allocated quota and the Centre will ensure that there is no shortage of funds for procurement of grains.
Until a year ago, the government was providing wheat at Rs 2 a kg and rice at Rs 3 a kilo, but opted to offer it for free, while withdrawing the additional quota of free grains provided during the Covid-19 period. The move also ended the subsidies being doled out by the states, who were seeking to take credit.
The scheme entails monthly provision of 5 kg foodgrain to 81.3 crore poor beneficiaries. It also includes supply of 35 kg grains to every family covered by the Antyodaya scheme.
Prime Minister Narendra Modi had announced the extension of the scheme for five years, which was cleared by the cabinet late Tuesday.While the subsidy payout under the scheme for the current calendar year (2023) is pegged around Rs 2 lakh crore, the government has provided a little extra budgeting for a 7-8% annual increase in minimum support price (MSP) and other costs. I&B minister Anurag Singh Thakur said the government’s priority is to ensure every poor citizen gets the allocated quota and the Centre will ensure that there is no shortage of funds for procurement of grains.
Until a year ago, the government was providing wheat at Rs 2 a kg and rice at Rs 3 a kilo, but opted to offer it for free, while withdrawing the additional quota of free grains provided during the Covid-19 period. The move also ended the subsidies being doled out by the states, who were seeking to take credit.
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During the current fiscal year, the economic cost of wheat for Food Corporation of India, which procures and stocks grains, is estimated at Rs 27 a kilo, while rice is over Rs 39 a kg. So, the Centre will bear the entire cost under PMGKAY.
The Modi government’s move came along with the implementation of the One Nation One Ration Card scheme, allowing all poor beneficiaries to avail of the scheme anywhere in the country.