The Cabinet, chaired by PM Narendra Modi, has approved allocation of additional foodgrain under Pradhan Mantri Garib Kalyan Anna Yojana Phase III- for another two months i.e. May to June at 5 kg per person per month free of cost.
The State or UT-wise allocation in terms of wheat or rice will be decided by the Department of Food and Public Distribution on the basis of existing allocation ratio under NFSA. In addition, the Department of Food and Public Distribution can decide on the extension of the lifting or distribution period under PMGKAY according to operational requirements keeping in view partial & local lockdown situations, and also arising out of severe weather conditions like cyclones, monsoon, supply chain & Covid-induced constraints etc.
The total outgo in terms of food-grains could be approximately 80 LMT.
The allocation of additional food-grain free of cost to nearly 79.88 Crore individuals under TPDS at 5 Kg / person per month for two months would require an estimated food subsidy of Rs. 25332.92 Cr taking the estimated Economic Cost of Rs. 36789.2 per MT for rice and Rs. 25731.4 per MT for wheat.
Moreover, additional allocation will reduce the problems faced by poor due to economic disruption caused by Covid-19. No poor family would suffer on account of non-availability of food-grains because of disruption in the next 2 months.
