Over 81 crore poor will get free grains for 5 more years

• The Union Cabinet has approved the extension of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for five years, starting January.

Key Points

• Aimed at providing free foodgrains to 81.35 crore people under the National Food Security Act (NFSA)
  • The scheme will cost the government Rs 11.80 lakh in subsidies over the next five years.

Background and Significance

• Launched in April 2020 in response to the Covid-19 outbreak, PMGKAY provided an additional 5 kg of free foodgrains on top of NFSA entitlement.
• The scheme was merged with NFSA in December last year, discontinuing the additional 5 kg provision.
• The extended PMGKAY will run for five years from January 1, 2024, providing free foodgrains to NFSA beneficiaries.
• Estimated to cost Rs 11.80 lakh in subsidies, the extension aims to strengthen food security and alleviate financial hardship for the poor.

Benefits and Nationwide Uniformity

• The scheme assures nationwide uniformity in delivering free foodgrains to beneficiaries across all States/UTs through a network of over 5 lakh Fair Price Shops.
• Aligns with the One Nation One Ration Card (ONORC) initiative, allowing beneficiaries to lift free foodgrains from any fair price shop in the country.

Cost of Foodgrains and Monthly Savings

• The economic cost of 35 kg rice for an Antyodaya family is Rs 1371, and the cost of 35 kg wheat is Rs 946 under PMGKAY, entirely borne by the Government of India.

Prelims Takeaway

• One Nation One Ration Card