Free Foodgrains For Poor For One Year Under NFSA, PMGKAY Relief Withdrawn
Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.
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By Linus Garg
First publised on 2022-12-27 03:45:28
About the Author
Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.
View all posts by this Author
With
economic activity gaining momentum in 2022 after the Covid-related disruption
of nearly two years, the government announced a major shift in policy in
providing free foodgrains to the poor. The government was providing 5 kg of foodgrains
free to over 81cr people under the Pradhan Mantri Garib Kalyan Anna Yojana
(PMGKAY) ever since the migrant crisis that erupted during the Covid lockdown
resulted in loss of livelihood and distress among the poor in India. This was
in addition to the 5 kg of foodgrains the same population was entitled to and
receiving at a subsidised rate of Rs 2/3 per kg under the National Food
Security Act (NFSA).
From
January 1, 2023, the free food grains distributed under PMGKAY will be stopped.
Instead, for one year till December 31, 2023, the poor will receive 5 kg
foodgrains totally free under the NFSA. This means that they will not have to
pay even the subsidized rates and will get their entitlement free from the fair
price shops (generally called ration shops). This is a good move by the
government as the financial implication will be low and will be mostly set off
against the withdrawal of the free scheme under PMGKAY.
This has to
be seen under the light of the procurement of foodgrains by the government. As
on December 1, the government had 55.46 metric tonnes (mt) of foodgrains in
warehouses (the low figure is due to poor crop in the last wheat season). Just
50 mt per year is required to fulfil the entitlement under NFSA. Hence, the
government will not need to procure more than 65-70mt every year. The normal
procurement is over 90mt which results in overflowing warehouses which in turn
results in foodgrains rotting or becoming fodder for rats. But the political
pressure of procuring wheat and rice at MSP will always be there and that is
why it is urgent to introduce farm sector reforms.
