Centre extends free foodgrain scheme for 800 million till this Diwali

The Central authorities on Monday extended the ongoing totally free extra foodgrains distribution scheme under the Pradhan Mantri Garib Kalyan Anna Yojana for 5 far more months commencing from July till November as thousands and thousands of poor family members stay poorly impacted thanks to the next wave of Covid-19.

The PMGKAY-3 was originally declared for the months of Might and June in perspective of the next wave of COVID-19.

Under the Garib Kalyan scheme, Centre distributes 5 kg of wheat or rice for each particular person for each thirty day period totally free of charge to pretty much 800 million beneficiaries of the Nationwide Food Safety Act (NFSA), over and above their usual regular entitlement.

Right after today, extension, the extra subsidy need under PMGKAY-3 at the present-day rate should really swell to over Rs 90,000 crore which includes Rs 26,000 crore for the initial two months.

This should really be over and above the usual PDS subsidy need of Rs 1.8 trillion in FY22.

The scheme which was initial introduced through the initial wave of Covid in April 2020, was restarted again in Might 2021 in mild of the next Covid wave.

Nevertheless, a crucial differentiator in between the two strategies was that not like the initial, this time around pulses didn’t form part of the totally free distribution scheme as the Centre didn’t have ample stocks in its warehouses.

According to rough estimates around twenty million tonnes of extra grains will be desired to meet up with the extra need of 5 months commencing from July.

This, should really not be issue as foods grains stocks in Central pool as on Might 1, 2021 was in extra of 100 million tonnes (this bundled 17.six million tonnes of unmilled rice)

In Might and June under PMGKAY-3, around 8 million tonnes of extra foodgrains are to be distributed to nearly 800 million NFSA beneficiaries each and every thirty day period.

In the meantime, knowledge confirmed that till June 3, under the PMGKAY-3, states have lifted far more than six.four million tonnes of foodgrains from Food Company of India’s depot (which is around 80 for each cent of the total PMGKAY allocation for Might and June 2021).

Of this around two.8 million tonnes had been distributed by 34 states and UTs to around 550 million NFSA beneficiaries for Might 2021 and around 130,000 tonnes of foodgrains have been distributed to around 26 million NFSA beneficiaries for June 2021 (see chart).

This is in addition to the usual distribution under the NFSA, which attained pretty much 90 for each cent of meant beneficiaries in Might 2021 and twelve p.c of them in June till June 3, 2021. The foods subsidy incurred for PMGKAY-3 till June 3, for Might and June was Rs 9,two hundred crore.

Final yr, in Fy-21, amid the nationwide lockdown, the Centre released the PMGKAY-1 in April 2020, originally for a few months commencing from April, which was later on extended to 5 months as the situation continued to stay fragile.

Under this the Centre distributed 5 kilograms of wheat or rice for each particular person for each thirty day period to pretty much 80 crore beneficiaries over and above the normal entitlement under the Food Safety Act for totally free.

In addition, all the eligible family members ended up also distributed 1 kilogram of pulses for each thirty day period without any demand.

As a result of two tranches of the PM Garib Kalyan Yojana and one of Atmanirbhar Bharat, the central authorities distributed around 32 million tonnes (mt) of extra grain in FY21 over and above the usual sale through the public distribution method (PDS) and other welfare strategies of around fifty five mt of wheat and rice.

According to the authorities, the total subsidy for totally free distribution of grains arrived to around Rs 46,061 crore for the initial a few months of April, Might and June.

Right after that the Garib Kalyan Anna Yojana was extended for 5 far more months, it bore an extra subsidy of around Rs seventy six,000 crore.

For that reason, the total subsidy implication for both of those the deals of Garib Kalyan arrived to around Rs 1.forty nine trillion (although actual estimates confirmed it could be lesser at around Rs 1.05 trillion), which also bundled subsidy incurred for distribution of pulses and on totally free distribution of grains to migrants for Atmanirbhar Bharat.

However the Centre promises that its totally free foodgrains distribution scheme has greatly served those who ended up in dire have to have through the pandemic, but, civil modern society activists say that the advantage was only confined to those who possessed a NFSA ration card.

Position of Food Grains Lifting and Distribution under PMGKAY-3 (Till June 3, 2021)

Regular Allocation (million tonnes for each thirty day period) Lifting By States (In million tonnes) Thirty day period of Distribution Dispersed Amount (In million tonnes) Beneficiaries Lined (in million) Subsidy Shipped
3.ninety six six.30 Might 2021 two.seventy five 550 Rs 8755 cr
June 2021 .thirteen 26.four Rs 473 cr
Full two.82 Rs 9229 cr

Take note: Distribution for Might and June months is ongoing. Timeline for lifting foods grains by States from FCI has been extended by 15 days (i.e. 15th June). Till June 3, 2021, pretty much 34 States and UTs have begun totally free foodgrain distribution under PMGKAY – III

Supply: Ministry of Food and Client Affairs