Cabinet approves further allocation of additional foodgrain to NFSA beneficiaries under PMGKY

The total outgo in terms of foodgrains may be approximately 204 LMT

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the allocation of additional foodgrain under Pradhan Mantri Garib Kalyan Yojana (PMGKY) (Phase IV) – for another period of 5 months i.e., July to November 2021 @5 kg per person per month free of cost for maximum 81.35 Crore beneficiaries covered under National Food Security Act (NFSA) (Antyodaya Anna Yojana and Priority Households) including those covered under Direct Benefit Transfer (DBT).

The sanction of the additional food-grain free of cost to a maximum of 81.35 crore individuals under TPDS @ 5 kg per person per month for five months would entail an estimated food subsidy of Rs 64,031 crore. As the 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 the Government of India.  Thus, the total estimated expenditure to be borne by the Government of India will be Rs 67,266.44 crore.

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. Additional allocation will ameliorate the hardships faced by the poor due to economic disruption caused by Corona Virus.