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What free food rations hide: A rollback of social security in India -Jean Drèze

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The sugar-coated termination of Pradhan Mantri Garib Kalyan Anna Yojana calls for an urgent expansion of alternative social security measures.

Much confusion surrounds the Modi government’s recent move to modify the foodgrain entitlements of National Food Security Act cardholders from January 1, 2023 onwards.

The move actually has two steps, cleverly synchronised. The first step consists of waiving, for one year, the token payments that National Food Security Act, or NFSA, cardholders normally make for their foodgrain rations. The second step – the big one – is the termination of Pradhan Mantri Garib Kalyan Anna Yojana.

The first step is of little consequence. Remember, the bulk of NFSA cardholders, known as Priority households, are entitled to 5 kg of cereals per person per month under the National Food Security Act. Until now, they were paying Rs 2 per kg for wheat and Rs 3 per kg for rice. In 2023, they will get the same amount for free and save Rs 10 to 15 per person per month. This is not going to be of much help. Nor is this step going to cost much to the central government – perhaps Rs 15,000 crore or so.

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