Under the National Food Security Act, up to 75% of the rural population and 50% of the urban population are legally entitled to subsidized foodgrains through the Targeted Public Distribution System. As a result, the Act covers roughly two-thirds of the population in terms of receiving heavily subsidized foodgrains.
The scheme would also ensure that the National Food Security Act (NFSA) is implemented effectively and uniformly. Previously, under the NFSA, beneficiaries received subsidized food grains at Rs 3 per kg for rice, Rs 2 per kg for wheat, and Rs 1 per kg for coarse grains. The Centre has decided that beneficiaries will now receive food grains at no cost beginning in 2023.
"According to the Union Ministry of Consumer Affairs, Food and Public Distribution, the government is committed to fulfilling its commitment and providing free foodgrain to the 81.35 crore people covered by the NFSA.
The Cabinet decided to launch a new Central Sector scheme to fulfil the vision of One Nation - One Price - One Ration in order to fulfil its commitment.
Under the scheme, the Government of India will provide free foodgrains to all NFSA beneficiaries, including Antyodaya Ann Yojana (AAY) households and Priority Household (PHH) individuals, for the next year through a nationwide network of 5.33 lakh Fair Price Shops.
The decision will strengthen the provisions of the NFSA, 2013 in terms of foodgrain accessibility, affordability, and availability for the poor.
The new integrated scheme will replace two existing food subsidy schemes run by the Department of Food and Public Distribution:
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Food Subsidy to FCI for NFSA, and
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Food Subsidy for decentralized procurement states, which deal with the procurement, allocation, and delivery of free foodgrains to states under NFSA "According to the ministry's statement.
