Cabinet extends free foodgrain scheme for 81 cr poor for five years

Prime Minister Narendra Modi had announced the extension of the scheme, which was to end this December, during election rallies in Madhya Pradesh and Chhattisgarh in November.

The Union government had launched the PMGKAY in April 2020 in the wake of the Covid-19 outbreak. Under the PMGKAY, an additional quantity of 5 kg of free foodgrains was provided to every person on top of their NFSA entitlement of subsidised foodgrains. Under the NFSA, the government provides rice at Rs 3 per kg, wheat at Rs 2 per kg and coarse grains at Rs 1 per kg.

In December last year, the government merged the PMGKAY with the NFSA and decided to provide free foodgrains to NFSA beneficiaries as per their entitlement for a year beginning January 2023. But it discontinued the additional quantity (5 kg) that was being provided under the PMGKAY.

On Tuesday, the Union cabinet that met under Prime Minister Modi, cleared the scheme’s extension. “Free food grains (rice , wheat and coarse grains/millets) under PMGKAY for 5 years from 1.1.2024 will strengthen food security and mitigate any financial hardship of the poor and vulnerable sections of the population.

It would provide Nation-wide uniformity in delivery of food grains free of cost in all States/UTs through a network of over 5 lakh Fair Price Shops under a common logo,” the official statement said. “It will also enable ease of living, in terms of allowing beneficiaries to lift free of cost food-grains from any fair price shop in the country under the ONORC-One Nation One Ration Card- initiative,” it said.

Citing an example of the cost of the foodgrains being provided under the PMGKAY, the statement said that the economic cost of 35 kg rice for an Antyodaya family comes to Rs 1371, while the cost of 35 kg wheat comes to Rs. 946, which is being borne by GOI under PMGKAY, and the foodgrains are provided completely free to the families.
“Thus, the monthly savings of ration card holders are significant, on account of the free foodgrains,” said the statement.