Financing the food chain: Challenges to ensure India remains hunger-free

The govt will face unprecedented budgetary challenges to ensure India remains hunger-free

On June 30, Prime Minister Na­rendra Modi extended the free grain distribution sche­me un­der the Pradhan Mantri Garib Kalyan Yojana (PMGKY) for five months till November. 

The decision will not only provide re­lief to millions of poor people as the Co­vid-19 pandemic infects economic activity, but also help Food Corporation of India (FCI), the country’s chief grain-procurement agency, clear its bulging food stocks.

The question, though, is whether the government will be in a position to sustain this level of spending. In fact, the cost of procuring and distributing food is only one aspect of the fresh fiscal burden; the