Cocktail of Economics and Politics
Indian Economy & Market|January 2023
During COVID period, for 28 months free distribution of food grains was done under Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). Now the Central government has decided to provide Free Foodgrains to about 81.35 crore beneficiaries under the National Food Security Act for one year from January 1, 2023. The Centre will spend more than Rs 2 lakh crore in this period as food subsidy under NFSA and other welfare schemes.
Shivanand Pandit
Cocktail of Economics and Politics

The government of India T has announced a new year's gift! In a Cabinet meeting held on December 23, 2022, the Union government decided to give 5 kilograms of free foodgrains every month for around 81 crore legatees of the National Food Security Act (NFSA) in the year 2023 instead of charging a subsidized sum as is presently done. This move will relax the shock of the termination of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). The scheme ended in December 2022 and has provided an additional 5 kilograms of free grains every month to NFSA beneficiaries after being hurled as a crisis measure in response to the COVID-19 epidemic in April 2020 and since received numerous postponements.

The NFSA 2013 allows up to 75% of the people staying in rural areas and 50% of the people staying in urban areas to obtain subsidized foodgrains from the Targeted Public Distribution System (TDPS) under two groups of beneficiaries. They are Antodaya Anna Yojana (AAY) households and Priority Households (PHH). The NFSA allows 35 kilograms of food grains per AAY household per month, and 5 kilograms of foodgrains per PHH person per month, at a subsidized amount of ₹3 per kilogram of rice, *2 per kilogram of wheat and 1 per kilogram of coarse cereal. Approximately 81 crore people have been spotted and are covered under the NFSA yearly.

Then again, the PMGKAY was publicized during the nationwide lockdown in March 2020, to safeguard livings in the pandemic by giving additional 5 kilograms of free food grains per person per month to the NFSA beneficiaries. Primarily announced for a period of 3 months from April to June 2020, the plan ran with consecutive postponements until December 2022.

Impact on the Food Subsidy

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