Food Subsidy

Food and Consumer Affairs Minister Pralhad Joshi on Monday launched sales of tomatoes at a subsidised rate of Rs 60 per kg in Delhi-NCR as part of the government's efforts to stabilise prices and provide relief to the common man. The National Cooperative Consumers' Federation of India Ltd (NCCF) vans will provide tomatoes at a subsidised rate. The tomatoes will be sold in Delhi along with Noida and Gurugram, according to an official statement. The Centre undertook the market intervention initiative to stabilise rising tomato prices in the retail market. While addressing the media during the flagging-off ceremony, Joshi said the Department of Consumer Affairs has decided to launch this initiative to check the surge of tomato prices in major cities, especially Delhi. "From today onwards subsidised tomatoes will be sold for Rs 60 per kg," he said. Vegetable vendors are selling tomatoes at Rs 70-100 per kg in the national capital, depending on the quality and locations. Joshi said th

The Budget is anticipated to be unveiled in the third week of July. The NDA 3.0 administration might strengthen specific welfare-oriented schemes, prioritising fiscal prudence

The data also shows that the government's external financing of the deficit has reached 148 per cent of the Revised Estimate till February 2024

Food and fertiliser subsidies account for about one-ninth of India's total budget spending of Rs 45 trillion during the current fiscal year that ends on March 31

The ongoing financial year's food subsidy has already surpassed the allocated Rs 1.97 trillion in Budget 2023-24

The subsidy outgo for FY24 was planned at Rs 4.03 trillion, but it could rise up to Rs 4.53 trillion

In October, the price of pulses, which accounts for a nine per cent share in the total cost of a veg thali, increased by 19 per cent year-on-year. This kept the thali cost from falling further, CRISIL

Union Food and Consumer Affairs Minister Piyush Goyal on Monday launched the sale of subsidised chana dal at Rs 60 per kg under a brand name 'Bharat Dal' to provide pulses at an affordable rate to consumers. Chana dal is being sold in Delhi-NCR through the retail outlets of National Agricultural Cooperative Marketing Federation (NAFED). It will also be available at retail stores of NCCF, Kendriya Bhandar and Mother Dairy's Safal. According to an official statement, Goyal launched the "sale of subsidised chana dal under the brand name 'Bharat Dal' at the rate of Rs 60 per kg for one kg pack and Rs 55 per kg for 30 kg pack." The introduction of 'Bharat Dal is a major step taken by the Central Government towards making pulses available to consumers at affordable prices by converting chana stock of the government into chana dal, it added. The milling and packaging of the chana dal is undertaken by NAFED for distribution through its retail outlets in Delhi-NCR and also through the outle

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