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Punjab government’s plan to add more freebies to ‘atta-dal’ scheme hits funds roadblock

The AAP government was planning to hand over additional food items like tea leaves, sugar, and mustard oil to the beneficiaries of the ‘atta-dal’ scheme from April 2026.

3 min readChandigarhDec 4, 2025 05:05 PM IST

Under the ‘atta-dal’ scheme, 40 lakh beneficiary families in Punjab receive 5 kg of wheat per family member every month. (Source: Express Archives)

The Punjab government’s proposal to add more freebies—dal, tea leaves, sugar, mustard oil and turmeric—to its ‘atta-dal’ scheme has hit a roadblock, with the cash-strapped finance department expressing reservations on rolling out another dole and burdening the state exchequer.

Sources in the Aam Aadmi Party (AAP) government said that the food department’s proposal was sent to the finance department, which expressed concerns, stating that the government should spend money on creating an asset rather than offering freebies.

Under the ‘atta-dal’ scheme, 40 lakh beneficiary families in Punjab receive 5 kg of wheat per family member every month. The government was planning to add more commodities like 2 kg of dal, 2 kg of sugar, 1 kg of tea leaves, 1 litre of mustard oil, and 200 grams of turmeric.

“Food minister Lal Chand Kataruchak has asked for at least sugar to be added to wheat. Let us see what happens. The decision is pending. Freebies do not mean much. The state government is already spending over Rs 22,000 crore on freebies in the state every year, including free power, free travel for women,” a government functionary said.

AAP was planning to hand over these food items to the beneficiaries from April 2026. “It would have cost us Rs 800 crore to Rs 1,000 crore. It is a burden on the exchequer,” the functionary added.

“We had scheduled a meeting on the issue on November 27. We were not able to hold it as the ministers concerned were preoccupied. We will hold the meeting soon,” said Harpal Cheema, Punjab finance minister.

A SAD-BJP initiative

The ‘atta-dal’ scheme was launched by the SAD-BJP government in 2007, following a pre-poll promise ahead of the Assembly elections that year. Former chief minister Parkash Singh Badal announced the scheme, under which wheat was given at Rs 4 per kg and chana dal at Rs 20 per kg. The scheme was revamped in 2013 under the National Food Security Act (NFSA).

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Now, beneficiaries get free wheat while the Punjab government pays for the transportation of wheat at Rs 50 to 60 crore every year. Eligibility is based on an annual income ceiling and a survey to identify eligible households who are issued ration cards.

Dal was rarely distributed under the scheme. The Congress, in its pre-poll promise before 2017, had also promised free dal and tea leaves, but could not fulfil it for want of funds.

Before the NFSA came into existence, when the state government had to bear the cost of wheat procurement, the government had an outstanding bill of Rs 900 crore. The outstanding still stands, with Punjab State Civil Supplies Corporation Limited, the nodal agency for wheat purchase, paying interest of Rs 5.25 crore every month.

Kanchan Vasdev

Kanchan Vasdev is a Senior Assistant Editor in The Indian Express’ Punjab bureau. She is a highly experienced journalist with 22 years of expertise covering high-stakes politics, governance, and social issues in Northern India. Professional Background Role: Primary reporter covering the Punjab Chief Minister’s Office (CMO), government policies, and the Aam Aadmi Party (AAP) leadership in the state. Experience: She previously worked with The Tribune and has played a key role in launching various city editions. Special Projects: Abandoned Brides: Authored a monograph on brides abandoned by NRIs as part of the Prabha Dutt Memorial Fellowship. Environment: Worked as a Centre for Science and Environment (CSE) fellow, focusing on the pollution levels in the Satluj river. Recent Notable Articles (Late 2025) Her recent reporting focuses on the legislative strategies and political maneuvers of the Bhagwant Mann-led Punjab government: 1. Legislative & Governance Standoffs "Punjab govt advances special Assembly session to pass resolution against VB-G RAM G Bill" (Dec 20, 2025): Reporting on the state's move to block the Centre's "Viksit Bharat" mission, which the state claims will undermine MGNREGA. "Punjab govt doubles down on special sessions, sixth in January" (Dec 19, 2025): Detailing the AAP government's use of special sessions as a legislative tool amid tensions with the Governor. "Punjab asks 'VIP teachers' working near Chandigarh to go back to border districts" (Dec 16, 2025): Reporting on CM Mann's move to end the practice of influential teachers avoiding postings in remote areas. 2. Political Analysis & Rural Polls "Punjab rural polls: Why Akalis are likened to dinosaurs in Punjab" (Dec 19, 2025): Analyzing CM Bhagwant Mann's rhetoric against the Shiromani Akali Dal (SAD) following local body elections. "AAP claims win in 78% Punjab zila parishads as counting continues" (Dec 18, 2025): Breaking down the results of the 2025 rural elections. "Rahul Gandhi and Sidhu alike, says Bhagwant Mann" (Dec 13, 2025): Covering the CM's critique of the Congress leadership. 3. Law Enforcement & Bureaucracy "Suspended Punjab IPS officer Ravjot Kaur Grewal awaits reinstatement" (Dec 10, 2025): Investigative reporting on the bureaucratic red tape involving the Election Commission and the state government. "Punjab declines to give parole to Amritpal Singh" (Nov 27, 2025): Detailing the state government's refusal to grant parole to the radical preacher and sitting MP. 4. Welfare & Economy "Punjab government's plan to add more freebies to 'atta-dal' scheme hits funds roadblock" (Dec 4, 2024): An analysis of the fiscal challenges facing the state's flagship food security program. "Mann leads Punjab delegation to Japan and South Korea for investor outreach" (Dec 2, 2025). Signature Beat Kanchan Vasdev is known for her insider access to Punjab's political executive. Her writing provides deep insights into how state policies are formulated and the friction points between the state government and central authorities. Her dual expertise in environment and law allows her to report on complex issues like the "Farmhouse Policy" (Dec 18, 2025) and river pollution with a unique policy-oriented lens. X (Twitter): @kanchan99 ... Read More

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