Food Subsidy

Odisha writes to Centre seeking release of pending food subsidy to state

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

Additional budget for FCI is indicative estimate; food subsidy enough: Govt

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

Union Budget 2023-24: Big cut in food, fertiliser subsidy bill in FY24

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

Budget 2023: Many PLI schemes are in the pipeline, says Piyush Goyal

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

India aims for $17 bn cut in food, fertiliser subsidies in 2023-24: Report

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

Congress says PM Modi's New Year 'gift' cuts rations of 810 mn poor by 50%

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

No free lunches

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

Free grain under NFSA: States to save on food bill, lose political mileage

Food subsidies are a major portion of subsidies provided by states

Centre saves subsidy and wheat stocks by making PDS free, ending PMGKAY

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

Fiscal consolidation risks

Food distribution decision will be tough to reverse

Centre makes PDS free for 810 mn people; annual outlay likely at Rs 2 trn

Govt merges certain benefits of PMGKAY into PDS

PM Modi to take call on extending PMGKAY beyond Dec: MoS Shobha Karandlaje

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

Centre set to offer wheat to millers, biscuit makers to tame prices: Report

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

Govt seeks approval for Rs 4.36 trillion additional spending in FY23

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

PMGKAY likely to end in December on fiscal, foodgrain constraints

"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

Cut I-T, review capital gains tax in Budget 2023-24: CII to govt

FM Nirmala Sitharaman's pre-Budget consultations from today

India opposes group consultation on food subsidies programme at WTO

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

Best of BS Opinion: Extension of PMGKAY, convergent growth, and more

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

Centre extends free food grain scheme till Dec at a cost of Rs 45k cr

Move to cost the exchequer additional Rs 44,762 crore

FinMin opposed extension of PMGKAY a day ahead of Cabinet approval

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