Free ration for six months more; to cost Rs 80,000 crore

The Union Cupboard on Saturday determined to increase the free ration scheme — Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) — by six months to September-end 2022, at a further value of Rs 80,000 crore to the exchequer. The federal government has to this point spent about Rs 2.6 trillion on the scheme, which was launched in April 2020.

“Beneath the prolonged PM-GKAY every beneficiary will get further 5 kg free ration per particular person monthly along with his regular quota of foodgrain below the Nationwide Meals Safety Act. Which means each poor family would get practically double the traditional amount of ration,” as per an announcement issued by the division of meals and public distribution after the Cupboard assembly.

“We’ve got sufficient foodgrain inventory to fulfill the requirement below PMGKAY for the following six months,” Sudhanshu Pandey, secretary, division of meals and public distribution, informed FE.

The PMGKAY was first rolled out as a complete aid bundle in March 2020.

The goal was “to achieve out to the poorest of the poor” and “assist them combat the battle towards Covid-19”.

The federal government is anticipating to save lots of round Rs 60,000 crore, due to lower-than-estimated procurement of wheat and rice in 2022-23 because of excessive mandi costs and elevated demand for the grains within the world markets following the Russia-Ukraine struggle that would increase exports.

So, on a web foundation, extension of PMGKAY could not upset the Finances math.

The scheme, initially launched for the April-June interval of FY21, was later prolonged until November-end, 2020; within the wake of the second wave of the pandemic, it was re-introduced in Could 2021 after which received prolonged until FY22-end. “Despite the fact that the Covid-19 pandemic has considerably abated and financial actions are gathering momentum, this PMGKAY extension would be certain that no poor family goes to mattress with out meals throughout this time of restoration,” the division mentioned. The scheme covers practically 80 crore beneficiaries.

“It’s price highlighting that the federal government had allotted about 75.9 million tonne of free foodgrain below the PMGKAY until Part V. With one other 24.4 miliopn tonne of free foodgrain below this extension (Part VI), the combination allocation of free foodgrain below the PMGKAY now stands at 100.3 million tonne,” in keeping with the federal government assertion.

The good thing about free ration will be availed by means of portability by any migrant labour or beneficiary below One-Nation-One-Ration-Card plan from practically 5 lakh ration retailers throughout the nation. To this point, over 61 crore portability transactions have benefitted the beneficiaries away from their properties.