Prime Minister Narendra Modi said the government will extend the free ration scheme, Pradhan Mantri Garib Kalyan Anna Yojana, covering 80 crore poor people, for five years.

Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)

• In March 2020, the Centre launched the scheme to provide free 5 kg food grains per person per month to over 80 crore beneficiaries covered under the National Food Security Act (NFSA) to reduce the hardships of people during the COVID-19 pandemic.

• This is over and above the foodgrains supplied under the National Food Security Act (NFSA).

• Initially in 2020-21, the PMGKAY scheme was announced only for a period of three months of April, May and June 2020 (Phase-I). Later, the government extended the scheme from July to November 2020 (Phase-II).

• With the COVID crisis continuing in 2021-22, the Centre in April 2021 had re-introduced the scheme for a period of two months of May and June 2021 (Phase-III) and extended it for another five months from July to November 2021 (Phase-IV).

• The scheme was again extended from December 2021 to March 2022 (Phase-V).

• On March 26, 2022, the Centre again extended the scheme for six months till September 30 (Phase-VI).

• In September-end, the scheme was extended for a further period of three months up to December 31, 2022 (Phase-VII).

• The benefit of free ration could be availed through portability by any migrant labourer or beneficiary under One Nation One Ration Card (ONORC) plan from nearly 5 lakh ration shops across the country.

New integrated food security scheme

• The National Food Security Act, 2013 provides for coverage of up to 75 per cent of the rural population and up to 50 per cent of the urban population, which at Census 2011 comes to 81.35 crore persons. 

• Under NFSA, while Antodaya Anna Yojana (AAY) households that constitute the poorest of the poor are legally entitled to receive 35 kg of foodgrains per family per month, priority households are entitled to 5 kg per person per month.

• Until December 2022, the foodgrains under the NFSA were distributed at Rs 3 per kg for rice, Rs 2 per kg for wheat and Rs 1 per kg coarse grains to beneficiaries, and additional foodgrains under the PMGKAY were  distributed free of cost. 

• The central government, to remove the financial burden of the poor beneficiaries and to ensure nationwide uniformity and effective implementation of the Act, decided to provide food grains free of cost to Antyodaya Anna Yojana (AAY) households and Priority Households (PHH) beneficiaries under NFSA, for a period of one year beginning from January 1, 2023.

• As per the central government decision, two food subsidy schemes have been subsumed as Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). 

• Under this scheme free foodgrain is being distributed through Targeted Public Distribution System (TPDS) from January 1, 2023.

• The Centre is spending more than Rs 2 lakh crore in 2023 for making foodgrains free of cost to the NFSA beneficiaries.

• Under this scheme, the cost towards intra-state movement and handling of foodgrains and fair price shop dealers’ margin is shared between the central and state government as per the provisions of the Food Security (Assistance to State Governments) Rules, 2015.

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