PMGKAY Update: Modi Govt Extends Free Ration Scheme PM Garib Kalyan Anna Yojana Till 2029

In big news for millions of eligible beneficiaries under the government's flagship scheme Prime Minister Garib Kalyan Anna Yojana (PMGKAY), the union government has decided to extend the PMGKAY scheme for another five years till 2029.

Union minister Anurag Thakur said on Wednesday that the scheme provides food grains free of cost to more than 800 million Indians. The extension will be applicable from January 1, 2024.

At a cabinet briefing, Thakur said the extension will cost the exchequer Rs 11.8 trillion. A decision in this regard was taken in the meeting of the Cabinet, led by Prime Minister Narendra Modi, on Tuesday.

One should note that earlier this month, the food ministry announced the extension of the PMGKAY scheme for one year beginning January 1, 2023.

PMGKAY was launched in 2020 to provide additional food grains free of cost, with the National Food Security Act (NFSA). However, in December last year, the government decided to subsume the PMGKAY.

Under the NFSA, up to 75% of the rural and 50% of the urban populations are covered under two categories -- Antyodaya Anna Yojana (AAY) and priority households.

AAY households, which comprise the poorest of the poor, are eligible to receive 35 kg of foodgrains per family each month, while priority households are entitled to 5 kg per person every month.

In January this year, the Cabinet led by Prime Minister Narendra Modi approved a new integrated food security scheme for providing free foodgrains to Antodaya Ann Yojna (AAY) & Primary Household (PHH) beneficiaries, to be rolled out from January 1, 2023. The new scheme was named Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY). Implementation of the new scheme has started from 1st January 2023, benefitting more than 80 crore poor and poorest of poor people.

For effective and uniform implementation of NFSA 2013, PMGKAY subsumed the two subsidy schemes of the Department of Food & Public Distribution (a) Food Subsidy to FCI (b) Food Subsidy for decentralized procurement states dealing with procurement, allocation, and delivery of free foodgrains to the states under NFSA.

PMGKAY expenditure:

According to the Ministry of Women and Child Development, between financial years 2020-22, nearly 111.8 million metric tonnes of food grains were allocated, amounting to a financial outlay of Rs 3.91 trillion. This covered phases I to VII of the scheme over the span of 28 months.

As of January 1, 2023, PMGKAY was extended for another year, with an estimated expenditure of Rs 2 trillion, making it one of the world's largest food security programmes.

What is the NFSA Act?

The National Food Security Act 2013, also known as the Right to Food Act, aims to provide subsidized food grains for approximately 67% or two-thirds of India's population. It was signed into law on September 12, 2013, retroactive to July 5, 2013, under Prime Minister Manmohan Singh's Congress-led UPA Government. The midday meal scheme, Public Distribution System, and maternity entitlements, among other initiatives, fall under this Act.

2024 General Elections And Rising Food Prices:

Inflation, especially rising prices of food items has become a cause of concern for common people in India, with the most affected being the middle class and unprivileged section of our society. With the 2024 General Elections almost just six months away it is highly likely that the decision to extend the scheme is motivated by both political and economic reasons.