• UGI USER
  • Dec 26, 2022
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81 crore people to get free food grains for one year

Why in News?

  • The Union Cabinet recently decided to provide free foodgrains to all 81 crore beneficiaries covered under the National Food Security Act (NFSA) till December 2023.

More about the news

  • New changes in NFSA:
    • The recipients will now receive 35 kilogrammes of foodgrains gratis for the following year, and others will receive 5 kg gratis each month until December 2023.
    • The additional funding for the programme has been projected by the Union government at 2 lakh crore. The Union Government would be responsible for paying the entire cost of the programme.
    • What is NFSA?
      • Under the NFSA, the Union government offers food grains (rice at Rs. 3 per kg, wheat at Rs. 2 per kg, and coarse grains at Rs. 1
      • By guaranteeing access to sufficient, high-quality food at affordable rates, the legislation seeks to safeguard people’s food and nutritional security.
      • The NFSA covers 75% of the population in rural areas and 50% of the population in urban areas.
      • Under the NFSA, recipient households fall into one of two categories:
      • Antyoday Anna Yojana (AAY): Regardless of the number of family members, AAY households are entitled to 35 kg of food every month.
      • Priority Households: Depending on the size of their family, priority households receive food grains (each member 5 kg per month).
    • The government has discontinued the Pradhan Mantri Garib Kalyan Anna Yojana:
      • It was introduced in 2020 alongside Covid-19, under which 5 kilogrammes of free food grains were given to every citizen in addition to their 5 kg NFSA allocation of food grains purchased at a discount.
      • The NFSA and the scheme have now been combined.
    • The Cabinet Committee on Economic Affairs also approved the Minimum Support Price (MSP) for copra for the 2023 season.
      • It is chaired by the PM.
      • The approval is based on the recommendations of the Commission for Agricultural Costs and Prices.
      • The National Agricultural Cooperative Marketing Federation of India Ltd. [NAFED] and the National Cooperative Consumers’ Federation [NCCF] will continue to act as Central Nodal Agencies for the procurement of copra and de-husked coconut under the Price Support Scheme.

Significance of the move

  • Food security legislation: For the first time in India’s history, there will be a national food security law that guarantees the right of the poor to receive 5 kg of free food.
  • The move lessens the blow because the discontinuation of the PM Garib Kalyan Anna Yojana may hurt the poor.
  • Revenue-saving measure: The government will save Rs 15,000 crore per month, or roughly Rs 1.8 lakh crore per year, by discontinuing the PMGKAY.

Way forward

  • PM’s vision: He has made the unprecedented decision to offer free food security to the underprivileged throughout the nation.
  • The Garib Kalyan Ann Yojna of the Prime Minister also secured 5 kg of free foodgrains for the underprivileged for an extended period of time.
  • Buffer stocks: According to the government, the nation has enough food stored in order to support the welfare programmes.
  • Changes required: The national rural to urban coverage ratio should be lowered from its current 75:50 to 60:40, according to the NITI Aayog.
  • Based on the predicted population in 2020, if this reduction takes place, the number of beneficiaries under the NFSA will fall to 71.62 crores.
  • To make these changes in the law, the government will have to amend sub-section (2) of Section 3 of the NFSA which will require parliamentary approval.