Govt makes foodgrain free of cost for 81.35 cr people under NFSA for 1 yr

New Delhi: In a pro-poor move, the government on Friday decided to provide free foodgrains to 81.35 crore people for one year under the National Food Security Act (NFSA) at an estimated cost of Rs 2 lakh crore. Currently, the beneficiaries covered under the NFSA pay Rs 1-3 per kg.

Beneficiaries under NFSA to get foodgrain free of cost till December 2023

Under the Act, foodgrain is allocated at 5 kg per person per month for priority households category and at 35 kg per family per month for Antodaya Anna Yojna (AAY) families at highly subsidised prices of Re 1, Rs 2 and Rs 3 per kg for coarse cereals, wheat and rice, respectively.
With the Cabinet decision on Friday, beneficiaries under NFSA will get foodgrains free of cost for one year till December 2023.

81.35 cr people to receive benefits

The decision comes days ahead of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) ending on December 31, 2022. The PMGKAY was launched in April 2020 to provide relief to the poor during the COVID-19 pandemic. "The Prime Minister has taken a historic decision of providing foodgrain to the poor free of cost. A total of 81.35 crore people would benefit," Food Minister Piyush Goyal told reporters after the Cabinet meeting.

The move will entail an expenditure of about Rs 2 lakh crore for the exchequer, he said, adding the entire cost will be borne by the Union government. Government officials described the latest Cabinet decision as a "new year gift for the country's poor", saying that over 81.35 crore people will now get free foodgrains under NFSA. The beneficiaries will not have to pay a single rupee to get foodgrains, they added. On the PMGKAY, Goyal said the government provided free foodgrain (5 kg per person per month) for 28 months.
Asked if PMGKAY would be extended beyond December 31, 2022, the minister said the scheme has been merged with NFSA and the additional quantity is now not required.

Financial conditions improved now: Piyush Goyal

Goyal further said the additional foodgrain under the PMGKAY, which was started during COVID because of financial stress of poor people, is not needed now. "Financial conditions have now become normal. Still, to provide relief to poor the government has made foodgrain under NFSA free of cost," the food minister said. The Centre enacted NFSA in July 2013, giving legal entitlement to 67 per cent of the population (75 per cent in rural areas and 50 per cent in urban areas) to receive highly subsidised foodgrain.

The coverage under the Act is based on the population figures of Census 2011. The NFSA is being implemented in all 36 states/UTs and covers about 81.35 crore persons.

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