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In a major move, the Narendra Modi government on Friday made the distribution of foodgrains through ration shops completely free to around 810 million beneficiaries, while scrapping the extra 5kg foodgrains they were getting under the Pradhan Mantri Gareeb kalian Ann Yojana (PMGKAI).
Until now, PDS beneficiaries were getting 5 kg of wheat, rice or coarse grains at Rs 3 per kg for rice, Rs 2 for wheat and one rupee for coarse grains under the National Food Security Act (NFSA) of 2013. That apart from , since Covid, an additional 5 kg has been given for free to the same 810 million users.
Henceforth, while PDS will be free, PMKGAI will not continue from December onwards. The official said the PDS has been freed for a period starting in December 2022. This would also mean that the mandate would end barely months before the 2024 general elections.
A move to scrap PMGKAI and make PDS completely free even for Antoday Anna Yojana (AAI) beneficiaries would save a significant amount of wheat from the Central Fund, whose stocks fell to a six-year low in December.
The decision, however, will put an additional financial burden on the exchequer of Rs two trillion annually, says Food Minister Piyush Goyal
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