Free grain under NFSA: States to save on food bill, lose political mileage

Food subsidies are a major portion of subsidies provided by states

With the Centre making the supply of rice and wheat through ration shops free under the National Food Security Act (NFSA) for one year, states that were further subsidising the foodgrain under the public distribution system (PDS) are likely to make huge savings in FY24. 

While the Central government provides rice and wheat at Rs 3 and Rs 2 per kg, respectively, to states under the NFSA, many states further subsidise that foodgrain at fair price shops. States, such as Andhra Pradesh, Chhattisgarh, Madhya Pradesh, Odisha, and Telangana, provide rice at Rs 1 per kg, while Jharkhand, Karnataka, Kerala, Tamil