A grain market
A grain marketIANS (File photo)

Cabinet nod for allocation of additional food grain to NFSA beneficiaries for another five months

New Delhi, June 23, 2021

The Union Cabinet today approved allocation of additional food grain under the Pradhan Mantri Garib Kalyan Yojana (Phase IV) for another five months from July to November, 2021.

The food grain, at 5 kg per person per month, will be given free of cost for 81.35 crore beneficiaries covered under the National Food Security Act (NFSA) (Antyodaya Anna Yojana and Priority Households) including those covered under Direct Benefit Transfer (DBT), an official press release said.

The decision will entail an estimated food subsidy of Rs 64,031 crore, the release said.

"As Government of India is bearing the entire expenditure towards this scheme without any contribution by States/UTs, an additional expenditure of about Rs. 3,234.85 crore would be required to be met towards transportation and handling and FPS dealers’ margins etc. by Government of India. Thus, the total estimated expenditure to be borne by Government of India will be Rs. 67,266.44 crore," it said.

The allocation in terms of wheat/rice shall be decided by the Department of Food & Public Distribution. Also, the Department of Food and Public Distribution may decide on the extension of the lifting/distribution period under Phase III and Phase IV of PMGKAY as per operational requirements, arising out of adverse weather conditions like monsoon, snowfall, etc. and supply chain and Covid-induced constraints.

The total outgo in terms of foodgrains may be approximately 204 LMT, the release said.

"Additional allocation will ameliorate the hardships faced by poor due to economic disruption caused by coronavirus. No poor family will suffer on account of non-availability of food grains due to disruption in the next five months," the release added.


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