No plans to extend free ration scheme owing to economic recovery: Report

The Central government has no plans to extend the distribution of free ration under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) after November 30 in view of the recovery in the economy. Food Secretary Sudhanshu Pandey, on Friday, said that the Union government has no plans to prolong the free ration policy beyond November 30, which was created as a safety net for the poor after the outbreak of Covid-19 pandemic, the Business Standard reported.

The government decision is taken as the economy is reviving and the open market sale scheme disposal of foodgrains has been exceptionally good this year, according to Pandey.

Prime Minister Garib Kalyan Anna Yojana

In March last year, the Prime Minister Garib Kalyan Anna Yojana (PMKGAY) was introduced to provide foodgrains to poor people amid the lockdown induced by
Covid-19 pandemic. The scheme was originally intended to run from April to June 2020, however it was then extended until November 30, 2021.

The government provides free rice and wheat to 80 crore beneficiaries under the PMGKAY scheme. Under the Open Market Sale Scheme programme, the government has been providing rice and wheat to bulk consumers in order to increase domestic availability and keep prices under control.

Centre will incur an additional expenditure of Rs 67,266.44 crore to extend the free food grains distribution programme for five months beginning in July, the report added quoting official estimates. The total expenditure on free food in FY 22 stands at Rs 93,868 crore including the extra spending of Rs 26,602 for May and June under the scheme.