Centre To Spend Rs11.80 lakh Crore to Provide Free Foodgrains For 81.35 Crore Beneficiaries For Five Years Under PMGKAY

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New Delhi: The Prime Minister Modi-led Cabinet has made a landmark decision to offer complimentary food grains to approximately 81.35 crore recipients through the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for a span of five years starting from January 1, 2024. This historic initiative positions PMGKAY as one of the largest global social welfare programs, dedicated to safeguarding the food and nutritional well-being of 81.35 crore individuals. The estimated expenditure for this ambitious five-year plan is Rs. 11.80 lakh crore.

The decision reflects the strong commitment of PM Narendra Modi towards efficient and targeted welfare through fulfilment of basic food and nutrition requirements of the population. Ensuring food security at this scale during Amrit Kaal would play a pivotal role in dedicating efforts towards building an aspirational and developed India.

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.

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. This initiative is of enormous benefit for  migrants, facilitating both intra and inter State portability of entitlements as part of technology based reforms under Digital India. The free food grains will concurrently ensure uniform implementation of portability under One Nation One Ration Card (ONORC) across the country and will further strengthen this choice-based platform.

The approximate food subsidy for five years for distribution of food grains under PMGKAY will be to the tune of Rs. 11.80 lakh crore. Thus, the Centre will spend approx. Rs. 11.80 lakh crore during the period of next five years as food subsidy under PMGKAY, to provide free food grains to the targeted population

The provision of free food grains under PMGKAY for five years with effect from 1st January 2024 reflects the long-term commitment and vision of Prime Minister Narendra Modi for addressing National food and nutrition security. Provision of free food grains shall mitigate any financial hardship of the affected strata of society in a sustainable manner and ensure long term pricing strategy with zero cost to the beneficiaries which is vital for effective penetration of the Public Distribution System.

As an example, 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.

Government of India has a commitment to the people of the nation – a dignified life by ensuring them access to food and nutritional security through availability of adequate quantity of quality food grains. The Scheme will contribute to fulfilling of Government of India commitment to 81.35 crore persons covered under PMGKAY. 

Keeping in view welfare of the beneficiaries and in order to strengthen the food security in terms of accessibility, affordability and availability of food grains for the targeted population, and to maintain uniformity across the States, the decision has been taken to continue providing food grains, free of cost, under PMGKAY for five years.

This is a historic decision that reflects the dedication and commitment of the Prime Minister of India, Narendra Modi, towards strengthening food and nutrition security in the Country.

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