Home FEATURED NEWS Extension of PMGKAY grain scheme until March will add 40,000 crore to subsidy invoice | India News

Extension of PMGKAY grain scheme until March will add 40,000 crore to subsidy invoice | India News

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NEW DELHI: Sources mentioned the federal government just isn’t averse to the concept of continuous the PM Garib Kalyan Ann Yojana (PMGKAY) scheme for one more 12 months contemplating the way in which it has benefitted the poor and susceptible sections of the society.
Under this scheme, practically 80 recognized beneficiaries get 5kg free foodgrain each month and that is along with the equal amount that they get at extremely subsidised worth below National Food Security Act (NFSA).
Barring six months, the Centre has continued offering the free foodgrain below PMGKAY because it was launched in April 2020 as a measure to defend the poor from the impression of the pandemic. The authorities has estimated the full subsidy of Rs 3.9 lakh crore for the seven phases of PMGKAY.
Extension of the scheme until March 2023 would add one other Rs 40,000 crore to the subsidy invoice, sources mentioned.
While monetary burden is one facet, the true problem for the federal government is the present inventory of wheat to satisfy the requirement. The authorities has been sustaining that there’s sufficient wheat within the central pool to satisfy the allocation for NFSA, different welfare schemes, in addition to the extra requirement for PMGKAY.
According to the federal government’s projection, about 159 lakh tonnes of wheat will likely be accessible within the central pool as on January 1, 2023 towards the buffer norm of 138 lakh tonnes. Sources mentioned if the PMGKAY is prolonged until March, there will likely be one other off-take of about 68 lakh tonnes of wheat between January and March 2023. That will go away the federal government with the full inventory of practically 91 lakh tonnes of wheat as on April 1, 2023 towards the stocking norm of 75 lakh tonnes.
“It will be like somehow managing with what we have before the next crop arrives at mandis from April. There will also be no scope for open market sale of wheat from the government stock,” an official mentioned.
The meals ministry hasn’t but made any concrete assertion on the open market sale of wheat besides saying they’re “keeping close watch” and can take steps when required. Sources mentioned although there have been conferences of this concern, the officers are ready for the federal government’s choice on PMGKAY.
“Whether the FCI will offer the wheat stock in open market depends on the government. If PMGKAY is not extended, then there is such a possibility. Extension of the scheme would leave the FCI with little surplus stock,” mentioned an official.
Meanwhile, wheat flour millers have been urging authorities to go for open sale of wheat there’s brief provide and costs are rising.

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