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DFPD estimated Rs 1,48,938 cr as cost for distribution of foodgrains and pulses under PMGKAY during April – Nov 2020 

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Estimated cost for distribution of foodgrainsOn June 30, 2020, Prime Minister Shri Narendra Modi, during televised address to the nation, announced the extension of Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY) from July, 2020 till the end of November 2020. Click Here to Read.

  • Now, on July 1, 2020, Department of Food and Public Distribution (DFPD) under Ministry of Consumer Affairs, Food and Public Distribution has worked out estimated cost for distribution of food grains (Rice and Wheat) and pulses under PMGKAY, which will be Rs 1,48,938 crore approx for a period between 8 months from April to November 2020.
  • Notably, Govt. of India is bearing the entire expenditure towards this Scheme.

Major Breakdown of Cost:

The estimations were made under the Targeted Public Distribution System (TPDS).

-An estimated cost of 32 million tonne for distribution of foodgrains (Rice and Wheat) from April to November 2020 will be approx. Rs 1,22,829 crores.

-An estimated expenditure for distribution of pulses during the period April-November 2020 will be Rs 11,800 crore approx.

-An expenditure of Rs 1,930 crore would be required to be met towards transportation & handling and Fair Price Shops (FPSs) dealers’ margins etc.

-In addition to above, the estimated cost for distribution of foodgrains to migrant labours for the period of two months is Rs 3,109.52 crore. 

-The foregone cost of Central Issue Price for foodgrains under the National Food Security Act (NFSA) is approximately Rs.11,200 crore.

About Pradhan Mantri Garib Kalyan Ann Yojana:

Initially launched from April, 2020 for 3 months, the scheme aims to provide  5 kg free wheat or rice per month along with 1 kg free whole chana (pulses) to each family per month covering 80 crore poor people which are severely impacted by the lockdown to contain COVID-19 spread. Now, it has extended for 5 months till November 2020 i.e. the overall period of the scheme becomes 8 months.

About Ministry of Consumer Affairs, Food and Public Distribution:
Union Minister– Ram Vilas Paswan (Constituency-Bihar)
Departments– Department of Food & Public Distribution (DFPD) and Department of Consumer Affairs (DCA)
Secretary (Food & Public Distribution)– Sudhanshu Pandey