The Union Cabinet, on Wednesday, decided to extend the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) to provide 5 kilograms of free food grains per month to 81.35 crore poor people for another five years, which would cost the exchequer `11.80 lakh crore.
The Cabinet meeting, chaired by Prime Minister Narendra Modi, also approved the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan, which focuses on 11 critical interventions for Particularly Vulnerable Tribal Groups. Additionally, the Cabinet approved a central scheme to provide drones to 15,000 progressive women Self Help Groups (SHGs) with an outlay of `1,261 crore for two years beginning in 2024-25.”
The Cabinet also cleared the Terms of Reference of the 16th Finance Commission to suggest the ratio for the devolution of taxes between the Centre and States. Additionally, it will review financing for disaster management initiatives for five years beginning April 1, 2026.
Information and Broadcasting Minister Anurag Thakur told the media, “Keeping in view the welfare of the beneficiaries and to strengthen 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 the PMGKAY for five years.”
The scheme was last extended until December 31, 2023. The PMGKAY was introduced in 2020 as a pandemic relief measure, providing 5 kg of free food grains per beneficiary per month, in addition to the 5 kg of subsidised food grain under the National Food Security Act (NFSA).
In December 2022, as the PMGKAY came to an end after multiple extensions, it was subsumed under the NFSA, providing ration for free for one year. Under the NFSA, two categories are covering up to 75 per cent of the rural population and 50 per cent of the urban population — Antyodaya Anna Yojana (AAY) and priority households. AAY households, comprising the poorest of the poor, are entitled to receive 35 kg of food grains per family per month, while priority households receive 5 kg per person per month.
Termed as a historic decision, the Government has stated that the extension of free grain distribution under the PMGKAY for the next five years reflects the long-term commitment and vision of the government in addressing national food and nutrition security. This move is expected to help mitigate any financial hardship faced by the affected strata of society in a sustainable manner and ensure a long-term pricing strategy with zero cost to the beneficiaries. This, according to a statement, is vital for the effective penetration of the Public Distribution System.
For example, the economic cost of 35 kg of rice for an Antyodaya family is `1,371, while the cost of 35 kg of wheat is `946. These costs are being borne by the Central Government. As a result, the monthly savings of ration cardholders are significant due to the provision of free food grains, it added.
Free grains will be distributed through a network of over 5 lakh fair price shops under a common logo. Beneficiaries can obtain their entitled grains from any fair price shop in the country under the One Nation One Ration Card initiative.
