Centre extends free foodgrain scheme for 800 million until this Diwali

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The Central authorities on Monday prolonged the continuing free further distribution scheme underneath the Pradhan Mantri Garib Kalyan Anna Yojana for 5 extra months ranging from July until November as hundreds of thousands of poor households stay badly impacted because of the second wave of Covid-19.


The PMGKAY-3 was initially introduced for the months of Could and June in view of the second wave of COVID-19.





Below the Garib Kalyan scheme, Centre distributes 5 kg of wheat or rice per individual per 30 days freed from price to nearly 800 million beneficiaries of the Meals Safety Act (NFSA), over and above their regular month-to-month entitlement.


After right now, extension, the extra subsidy requirement underneath PMGKAY-3 on the present price ought to swell to over Rs 90,000 crore together with Rs 26,000 crore for the primary two months.


This needs to be over and above the same old subsidy requirement of Rs 1.8 trillion in FY22.


The scheme which was first launched through the first wave of Covid in April 2020, was restarted once more in Could 2021 in gentle of the second Covid wave.


Nonetheless, an important differentiator between the 2 schemes was that not like the primary, this time round pulses didn’t type a part of the free distribution scheme because the Centre didn’t have sufficient shares in its warehouses.


Based on tough estimates round 20 million tonnes of additional grains might be wanted to fulfill the extra requirement of 5 months ranging from July.


This, shouldn’t be drawback as meals grains shares in Central pool as on Could 1, 2021 was in extra of 100 million tonnes (this included 17.6 million tonnes of unmilled rice)


In Could and June underneath PMGKAY-3, round 8 million tonnes of additional are to be distributed to almost 800 million NFSA beneficiaries every month.


In the meantime, knowledge confirmed that until June 3, underneath the PMGKAY-3, states have lifted greater than 6.4 million tonnes of from Meals Company of India’s depot (which is round 80 per cent of the full PMGKAY allocation for Could and June 2021).


Of this round 2.8 million tonnes had been distributed by 34 states and UTs to round 550 million NFSA beneficiaries for Could 2021 and round 130,000 tonnes of foodgrains have been distributed to round 26 million NFSA beneficiaries for June 2021 (see chart).


That is along with the same old distribution underneath the NFSA, which reached nearly 90 per cent of meant beneficiaries in Could 2021 and 12 p.c of them in June until June 3, 2021. The meals subsidy incurred for PMGKAY-3 until June 3, for Could and June was Rs 9,200 crore.


Final yr, in Fy-21, amid the nationwide lockdown, the Centre launched the PMGKAY-1 in April 2020, initially for 3 months ranging from April, which was later prolonged to 5 months because the scenario continued to stay fragile.


Below this the Centre distributed 5 kilograms of wheat or rice per individual per 30 days to nearly 80 crore beneficiaries over and above the traditional entitlement underneath the Meals Safety Act without spending a dime.


As well as, all of the eligible households had been additionally distributed 1 kilogram of pulses per 30 days with none cost.


By way of two tranches of the PM Garib Kalyan Yojana and one among Atmanirbhar Bharat, the central authorities distributed round 32 million tonnes (mt) of further grain in FY21 over and above the same old sale by the general public distribution system (PDS) and different welfare schemes of round 55 mt of wheat and rice.


Based on the federal government, the full subsidy without spending a dime distribution of grains got here to round Rs 46,061 crore for the primary three months of April, Could and June.


After that the Garib Kalyan Anna Yojana was prolonged for 5 extra months, it bore an extra subsidy of round Rs 76,000 crore.


Subsequently, the full subsidy implication for each the packages of Garib Kalyan got here to round Rs 1.49 trillion (although precise estimates confirmed it may very well be lesser at round Rs 1.05 trillion), which additionally included subsidy incurred for distribution of pulses and on free distribution of grains to migrants for Atmanirbhar Bharat.


Although the Centre claims that its free foodgrains distribution scheme has vastly helped those that had been in dire want through the pandemic, however, civil society activists say that the profit was solely restricted to those that possessed a NFSA ration card.


Standing of Meals Grains Lifting and Distribution underneath PMGKAY-3 (Until June 3, 2021)








Month-to-month Allocation (million tonnes per 30 days)

Lifting By States (In million tonnes)

Month of Distribution

Distributed Amount (In million tonnes)

Beneficiaries Coated (in million)

Subsidy Delivered

3.96

6.30

Could 2021

2.75

550

Rs 8755 cr



June 2021

0.13

26.4

Rs 473 cr



Complete

2.82


Rs 9229 cr




*million tonnes per 30 days


***In million tonnes


***in million


NOTE: Distribution for Could and June months is ongoing. Timeline for lifting meals grains by States from FCI has been prolonged by 15 days (i.e. fifteenth June). Until June 3, 2021, nearly 34 States and UTs have began free foodgrain distribution underneath PMGKAY – III


Supply: Ministry of Meals and Client Affairs



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