News Highlight
Gujarat to Punjab states seek an extension of the free foodgrains scheme (Pradhan Mantri Garib Kalyan Anna Yojana) beyond September 30.
Key Takeaway
- With several states planning to seek an extension of the free foodgrains scheme, the Centre may be inclined to keep it running for at least a few months longer.
- The PMGK Anna Yojana was initially announced for three months (April-June 2020) and was later extended several times.
Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY)
- PM-GKAY is a food security welfare scheme announced by the Central Government in March 2020, during the Covid-19 pandemic.
- It is a part of the Pradhan Mantri Garib Kalyan Package (PMGKP) to help the poor fight the battle against Covid-19.
- Nodal Ministry: Ministry of Finance.
- Implementing Agency: Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution.
- Objective: To feed the poorest citizens of India by providing grain through the Public Distribution System to all the priority households (ration card holders and those identified by the Antyodaya Anna Yojana scheme).
- What will the beneficiaries get under the scheme?
- Under this scheme, the centre provides the poor 5kg of free food grains per month. This is in addition to the subsidised (Rs 2-3 per kg) ration provided under the National Food Security Act (NFSA) to families covered under the Public Distribution System (PDS).
- Achievements of the scheme
- By March 2022, the Government had spent approximately Rs. 2.60 Lakh Crore and another Rs. 80,000 Crore were spent over till September 2022, taking the total expenditure under PM-GKAY to nearly 3.40 Lakh Crore.
- Till Phase V (i.e. till March 2022), the Government had allocated about 759 Lakh Metric Tonnes (LMT) of free food grains under the PM-GKAY.
- Even though the Covid-19 pandemic has significantly lessened and economic activities are gathering momentum, this PM-GKAY extension has ensured that no poor household goes to bed without food during this time of recovery.
Should the Programme be extended further?
- The exhausting stocks of wheat and rice and the likely huge subsidy burden could pose a massive challenge in front of the government in extending the free food grain scheme any further.
- While the Centre can tackle the subsidy issue, getting enough food grain to meet the buffer stock norms won’t be possible.
- If the PMGKAY scheme is extended till March 2023, the overall rice stock in the central pool may go below the buffer norm by 22 lakh tonnes.
- Further, estimates also signal that such an extension may cost around Rs 90,000 crore to the exchequer through subsidy.
Pic Courtesy: freepik
Content Source: Indian Express