Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY)

06 Oct 2022 Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY)

Source: The Indian Express

News: Government extended the food grain distribution under Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) for another three months until December 2022.

About Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY):

• In this scheme, free food grains (5 kg per person per month) were provided to eligible beneficiaries of the National Food Security Act (NFSA), 2013 by the government.
• Food grains provided under PM-GKAY are over and above the monthly entitlement of the beneficiary under the NFSA.
• PM-GKAY is channeled through the Public Distribution System(PDS).
• It provided an effective social safety net during the pandemic and helped the government to dispose of excess grain lying in warehouses.
• Only people covered under NFSA receive free food grains under PM-GKAY.
• Government announced this scheme on March 26, 2020 as a component of Rs 1.7 lakh crore Covid relief package announced just two days after the country went into national lockdown following the outbreak.

Phases of PM-GKAY: Initially, the scheme was only for three months i.e.  April to June 2020.But the scheme keeps on getting extended.

• First Extension: On July 8, 2020, it was extended for five months from July to November 2020.
• Second Phase: Government restarted the PM-GKAY in March-April 2021 when the second Covid-19 wave hit the country.
• Third Extension: The scheme was approved for  another two months from May and June 2021.
• Fourth phase of the scheme is from July to November 2021.
• Fifth phase when the government decided to continue the scheme till the end of March 2022. 
• Sixth phase: The Union cabinet headed by PM Modi extended the scheme until December 2022.

National Food Security Act (NFSA), 2013:

• Aim of the NFSA: To ensure  “access to adequate quantity of quality food at affordable prices” to 50 per cent of the urban and 75 per cent of the rural population of the country.
• Under this food law food grains  are provided  to eligible  beneficiaries at highly subsidised rates. In this scheme.
• Under this scheme, the cost of rice, wheat and coarse grains is Rs 3 per kg, Rs 2 per kg and Rs 1 per kg respectively.
• Antyodaya Anna Yojana (AAY) households, and the Priority Households (PHs) are two categories of beneficiary households under the NFSA.
• Entitlement under AAY: Every month 35 kg of foodgrains provided  to each AAY household irrespective of the number of members in the household.
• Entitlement under PHs: Every month each member of a PH receives 5 kg of foodgrains under the NFSA. Quantity of foodgrains disburse to households under PHs depends upon number of family members. So, the bigger PH family gets the greater quantity of foodgrains.
• Coverage under NFSA: 67.5% is the overall national coverage of the NFSA .

Difference between PM-GKAY and NFSA:

• The PM-GKAY is a programme introduced by the executive just as a top-up to the entitlements of beneficiaries covered by the NFSA, whereas the NFSA is a right-based programme under a law of Parliament.
• PM-GKAY does not cover additional beneficiaries beyond the accepted limit of 81.35 crore persons under the NFSA.

Issues associated with extension of PM-GKAY:

• Politicization of the scheme: There are allegations against the government that it keeps on extending PM-GKAY keeping assembly elections in mind.
• Low utility: As godowns are no longer overflowing and most economic activity resumed to near -normal level.
• Other issues such as failed wheat crop and uncertainty over the kharif rice about to be harvested.
• Possibility of more diversion of food grains as open market prices are hardening, current retail price of wheat and rice is Rs 31 and 38 per kg. So, in this case increasing food grain quantity for distribution would result in poor getting less and not more.
• Continuous extension may affect fiscal prudence due to increase in food subsidies burden with the announcement of PM-GKAY.
• Depletion in stocks of grains due to doubling free rations and less procurement of wheat may fail to curb inflationary expectations in the country.
• Current situation demands the government to raise the minimum support price (MSP) of wheat to replenish wheat stocks in FCI godowns. But, this will  put an undue burden on minimum support price (MSPs)and the fiscal deficit.

Conclusion: PM-GKAY is introduced to ameliorate the distress due to Covid lockdowns. But, current economic situation requires doing away with perverse subsidies through  limiting  the PDS coverage to 30% of the bottom population and  fixing the issue prices of PDS supplies at half the MSP.

Article: Inflation-climate change link(Ashok Gulati);Free grain scheme needs to be backed by imports to cushion wheat prices; Three more months of free food grains for poor: economics & politics of PM-GKAY

Article Link: 

1.https://indianexpress.com/article/opinion/columns/the-link-between-inflation-and-climate-change-8186510/ 

2.https://indianexpress.com/article/opinion/editorials/pradhan-mantri-garib-kalyan-anna-yojana-pds-cereal-stock-modi-8186487/ 

3.https://indianexpress.com/article/explained/3-more-months-of-free-foodgrains-for-poor-economics-politics-of-pm-gkay-8178565/ 

Yojna IAS Daily current affairs eng med 6th Oct

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