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LATEST NEWS UPDATES | The Public Distribution System is more than free grains -Dipa Sinha

The Public Distribution System is more than free grains -Dipa Sinha

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published Published on Dec 29, 2022   modified Modified on Dec 30, 2022

-Moneycontrol.com

The free and subsidised grains are an implicit income transfer to people and ensure basic protection from starvation

The distribution of free grains through the Public Distribution System (PDS) under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) has been one of the main relief measures undertaken by the Indian government in response to the economic distress brought about by the Covid pandemic. From April 2020 until the end of 2022, all beneficiaries under the National Food Security Act (NFSA) were given five kilograms of free foodgrains per person per month (with a break between November 2020 to May 2021). With the pandemic almost coming to an end and the stocks of foodgrains under the Food Corporation of India (FCI) depleting to the lowest levels in the last four years, many anticipated that the PMGKAY would not be continued further. There were also reports of the finance ministry being unhappy about the last extension due to the additional subsidy burden.

In this context, the central government based on a cabinet decision came up with an unexpected announcement on December 23. While the PMGKAY has indeed not been extended to 2023, the foodgrains being distributed under the NFSA at Rs 3 per kg for rice and Rs 2 per kg for wheat will now be given for free for a year (up to December 2023). This move will result in an additional burden of about Rs 18,000 crore per year for the government, while it would be saving around Rs 1.8 lakh crore that it would have to spend had it continued with the PMGKAY.

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Moneycontrol.com, 29 December, 2022, https://www.moneycontrol.com/news/opinion/the-public-distribution-system-is-more-than-free-grains-9779271.html


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