81 crore people to get free food grains for one year

The Central Government has decided to merge the PMGKAY with the National food security Act (NFSA) and aims to provide free foodgrains to all 81 crore beneficiaries covered under the NFSA for one year.

Food Security:

• According to NFSA, Food Security is defined as the availability of sufficient food grains to meet the domestic demand as well as access, at the individual level, to adequate means of food at affordable prices.
• The globally recognized definition of food security is access to food at the household level at all times to ensure a healthy and active life for all its members.

What change the decision will bring about?

• The beneficiary families which used to pay Rs 1 for coarse cereals, Rs 2 for wheat, and Rs 3 for rice per kg will now get 35 kg of food grains free for the next year.
• Others will get 5 kg for free in a month till December 2023.

Impact:                     

• India will now have a central food security legislation that gives the poor a ‘right’ to receive 5 kg of foodgrains free of cost.
• Earlier, the poor paid a small price of Rs 3 per kg for rice and Rs 2 per kg for wheat.
• The decision softens the blow the poor may suffer with the PM Garib Kalyan Anna Yojana (PMGKY) being discontinued by the end of the month.

Significance of the move:

• The discontinuation of PMGKAY comes at a time when the food grains stock has depleted over the months.
• The decision softens the blow the poor may suffer with the PM Garib Kalyan Anna Yojana being discontinued by the end of the month.

What is National Food Security Act (NFSA)?

• Under the Act, each Antyodaya Anna Yojana household, which refers to the poorest sections of the country, is entitled to 35 kg of food grains per month.
• This policy covers approximately 2.37 crore households or 9.01 crore persons, as on February 1, 2021.
• Besides, nearly 70.35 crore persons from priority households, or those who hold a ration card, are entitled to 5 kg of food grains per person per month.

Limitations of the scheme

• Corruption: The scheme has been affected by widespread corruption, leakages, and failure to distribute grain to the intended recipients.
• Leakages: Out of the 79.25 crore beneficiaries under the National Food Security Act (NFSA), only 55 crores have so far received their 5 kg.
• Inaccessibility: Many people were denied their share due to their inability to access ration cards.
• Low consumption: Livelihood losses led to a decline in aggregate demand and resulted in the lowest-ever consumption expenditure by the people owing to the scarcity of cash.
• Resale of subsidized grains: This in turn led to the selling of the free grains obtained in the local markets for cash.