Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)

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Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)

Recently the Ministry of Consumer Affairs, Food and Public Distribution has renamed the ‘free food grain scheme’ as Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

  • The Central Government has named its new Integrated Food Security Scheme as PMGKAY. Under this Integrated Food Security Scheme, free food grains are provided to Antyodaya Anna Yojana (AAY) and Primary Household (PHH) beneficiaries under the National Food Security Act (NFSA), 2013.
  • This step will further strengthen the provisions of NFSA, 2013 in terms of access, affordability and availability of food grains to the poor.
  • Two subsidy schemes of the Department of Food and Public Distribution will also be included in this scheme.

Food subsidy to Food Corporation of India (FCI):

This subsidy is given in the form of consumer subsidy and buffer subsidy.

  • Consumer subsidy: is the difference between the economic cost borne by the FCI and the central issue price received.
  • Buffer Subsidy: It is the cost of keeping and maintaining the buffer stock of food grains.

Food subsidy to States undertaking decentralized procurement linked to procurement, allocation and free distribution of food grains to States under NFSA. Earlier, the scheme with the same name (PMGKAY) was launched during the COVID-19 pandemic.

Difference between both the schemes-

  • Earlier, NFSA beneficiaries were getting food grains at a subsidized rate. Under this, 35 kg food grains were being given to each AAY family, and 5 kg food grains per person to PHH.
  • The beneficiaries were getting rice at Rs.3/kg, wheat at Rs.2/kg and millets at the rate of Rs.1/kg. In addition, 5 kg food grains were being provided free of cost during COVID.
  • Now, the government has ended subsidized prices and is providing food grains free of cost for one year. However, additional 15 kg food grains will not be made available.

Source – PIB

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