Janjivan Bureau / New Delhi: The BJP-led Union government today extended by three months the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)—the programme to provide free rations to the poor. Coming ahead of the critical Gujarat and Himachal Pradesh elections, the move has also been taken in mind high inflation in the country amid the ongoing festival season.
Briefing about the decisions in the Cabinet meeting headed by Prime Minister Narendra Modi, Union Minister Anurag Thakur said the scheme to provide 5 kg of wheat and rice free of cost to 80 crore poor every month, which was ending on Friday, will now run through December 31.
“For the next three months there will be festival season in the country,” he said, adding that 122 LMT (lakh tonnes) food grains will be provided to more than 80 crore people at a cost of over Rs 44,762 crore.
The scheme was started in April 2020 to help the poor whose livelihoods were shuttered by a nationwide lockdown aimed at containing the spread of the Coronavirus.
With the deadline drawing close, all eyes are on whether the Centre will extend the Yojana beyond September 30 given the current state of wheat stocks. Most states, including those ruled by the BJP, wanted the scheme to continue, which has now been extended seven times, the last being on April 1.
As per the FCI website, the current rice stock in the country is 244.63 LMT (lakh tonnes) and wheat 248.22 LMT. While paddy procurement will begin next month, the total quantity of unmilled paddy lying with the FCI and state agencies is 161.60 LMT, which is enough to fulfil the demand, say officials.
However, the government has to make do with the existing wheat stock for the next six months when the new crop arrives. At the current consumption rate, 20 to 21 LMT wheat is required every month. As per the stocking norms, 44.60 LMT as operational stock and 30 LMT as strategic reserves should be available on April 1 when the next crop starts arriving.
The heat wave in Punjab and Haryana affected the wheat crop, resulting in shrivelled grains and the next crop is expected to arrive in the mandis beginning April 1, 2023. Till then, the country has to rely on its existing stocks. Therefore, the government had increased the quota of rice in free ration, which was also objected to by states where wheat is consumed, the sources said.
Notably, the Expenditure Department under the Finance Ministry is believed to have advised against extending the scheme on food security and fiscal grounds.
The government has already placed restrictions on the export of wheat and flour, triggering a jump in the demand for wheat flour overseas. Kharif production is expected to fall by 10-12 million tonnes this season due to poor rains in certain areas as well as crop diversification.