Food Subsidy

It said that the anticipated cost is required to be released in the form of advance subsidy at the rate of 90% of admissible claims on a quantity basis in the first month of every quarter

An extra-budgetary provision of Rs 1.45 lakh crore made to state-run FCI in the Budget for 2023-24 fiscal is an "indicative outlay" of short term working capital, otherwise the food subsidy outlay made for the agency is "adequate" to cover all the anticipated procurement costs for PDS, according to the food ministry. Food Corporation of India (FCI) is the Centre's nodal agency for procurement and distribution of foodgrains through the Public Distribution System (PDS). The difference between the economic cost and central issue price of foodgrains is paid as a food subsidy to the agency. A big part of the Union government spending comes from outside the budget, which is referred to as internal and extra-budgetary resources (IEBR). IEBR constitutes the resources raised by public sector units through profits, loans and equity. An IEBR provision of Rs 1.45 lakh crore has been made for FCI in the Budget for the 2023-24 financial year. According to the ministry, "The purpose of an outlay o

Possible triggers? Abolition of extra free foodgrain distributed as part of PMGKAY, cooling of international fertiliser prices

As and when other PLI schemes get approved, the cabinet is empowered to approve it

The government expects to budget around Rs 2.3 trillion for food subsidies in the coming fiscal year, compared with Rs 2.7 trillion for the current year to March 31

The Congress on Tuesday alleged that the Modi government has reduced the ration of the 81 crore poor people by 50 percent in the new year. The opposition party said 81 crore Indians who were eligible for 10 kilograms of foodgrains will now get only five kilograms. "The year 2023 began with the depressing news that PM Modi's Cabinet has discontinued the Pradhan Mantri Garib Anna Kalyan Yojana (PMGKAY), which provided an additional 5 kgs of food grains to beneficiaries under the National Food Security Act (NFSA)," said AICC general secretary Jairam Ramesh. He said with this sudden reduction of rations by 50 percent, the prime minister has taken this "regressive" decision with no consultation with state governments nor any discussion in Parliament. The Centre had undertaken the distribution of free food grains for 28 months under PMGKAY in view of the Covid pandemic but the scheme ended in December. However, the Cabinet has decided that subsidised foodgrains distributed to about 81.35

The free food scheme is driven by electoral considerations, but its long-term fiscal risks outweigh the short-term gains

Food subsidies are a major portion of subsidies provided by states

If PMGKAY was continued beyond December 2022, at least Rs 40,000 crore would have got spent for three months (Jan to March)

Food distribution decision will be tough to reverse

Govt merges certain benefits of PMGKAY into PDS

Prime Minister Narendra Modi will take a call on extending the PMGKAY scheme to provide free ration to the poor beyond December, Union Minister Shobha Karandlaje said on Thursday said stressing that the government has sufficient foodgrains stock. If Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) has to be extended, the decision will be taken by the Cabinet, headed by the prime minister. The Cabinet meeting is scheduled on Friday. In September, the government had extended PMGKAY for three months till December 31. "Covid-19 cases are coming. The scheme is till December. ...After that, the decision (on extending it) will be taken by the prime minister," Karandlaje, Minister of State for Agriculture, told reporters. In last 28 months, the government has spent Rs 1.80 lakh crore on distribution of free ration to the poor under PMGKAY, she said. The government has sufficient foodgrains stock to meet the requirement under the food security law and other welfare schemes, she added. The

Wheat prices have surged in India this year after a sudden rise in temperatures hit crop yields and output

Fertiliser, food subsidies, payments to OMCs for LPG dominated supplementary demand

"The food subsidy burden is already crossing Rs 3 trillion and we are hopeful that it will be brought down below that mark," said a senior government official

FM Nirmala Sitharaman's pre-Budget consultations from today

The members had expressed concern with India's "lack of full transparency" in taking recourse to the Bali Decision as well as in replies to certain questions raised in the Agri Committee

Here is the best of Business Standard's opinion pieces for today

Move to cost the exchequer additional Rs 44,762 crore

Office memorandum flagged fiscal concerns due to impact of Ukraine war on fuel prices. With Covid-19 having largely subsided, reasons for which earlier extensions were given no more seem to hold