Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)

Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)

• The new integrated food security system, which will provide free food grains to Antodaya Anna Yojna (AAY) and Primary Household (PHH) recipients, will be implemented on January 1, 2023.
• The Union government has dubbed its new free foodgrain scheme, established under the National Food Security Act of 2013, the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).
• The integrated system is expected to reinforce the provisions of the NFSA, 2013 in terms of foodgrain access, affordability, and availability for the poor.

What exactly is PM-GKAY?

• PMGKAY is a component of the Pradhan Mantri Garib Kalyan Package (PMGKP) designed to assist the underprivileged in their fight against Covid-19.
• The initiative aims to give an additional 5 kilogram grains (wheat or rice) for free to each person covered by the National Food Security Act 2013, in addition to the 5 kg of subsidized foodgrain already provided under the Public Distribution System (PDS).
• It was previously announced to cover 80 crore ration cardholders for three months (April, May, and June 2020). It was later extended to September 2022 and then to December.
• The Ministry of Finance is its nodal Ministry.

The new scheme's name is similar to that of the free foodgrain scheme announced as part of the Centre's Covid-19 package in 2020.

Previous plan:

• The distinction between the two schemes is that around 81 crore NFSA beneficiaries were entitled to free 5 kg of foodgrain per person per month in addition to their monthly benefits.
• They were, however, had to pay the subsidized rate of foodgrains (Rs 3 per kg rice, Rs 2 per kg wheat, and Rs 1 per kg coarse grains) in order to acquire the amount to which they were entitled-35 kilograms each Antyoday Anna Yojana Household and 5kg per person in a Priority Household per month.

New Program:

• Under the new scheme, the government has eliminated subsidized prices and is giving food grains for free for a year.
• However, the excess quantity that was available during the Covid epidemic will no longer be made available to these people.
• They will be given the amount of food grain they are entitled to under the NFSA.

Issues:

• Expensive: It is exceedingly costly for the government to support, which raises the demand for a plentiful supply of cheap grains. In 2022, India was forced to limit wheat and rice exports due to irregular weather, which pushed up food costs and shook global agricultural markets.
• Increased Fiscal Deficit: This could jeopardize the government's goal of reducing the fiscal deficit to 6.4% of GDP.
• Inflation: The program's choice may have an impact on inflation. Rice and wheat prices are rising due to poor production during a heatwave and spotty monsoon, which account for around 10% of India's retail inflation.

About National Food Security Act (NFSA), 2013

• It was passed in July 2013.
• It grants legal entitlement to highly subsidized food grains to 67% of the population (75% in rural areas and 50% in urban areas).
• Foodgrains were sold at heavily subsidized prices of Rs. 1/-, Rs. 2/-, and Rs. 3/- per kg under the Targeted Public Distribution System (TPDS) for nutri-cereals, wheat, and rice, respectively.
• The Ministry of Consumer Affairs, Food & Public Distribution's Department of Food and Public Distribution is the nodal ministry for executing this Act.
• Eligibility: According to Section 3 of the Act, the word "eligible households" refers to two types of households.
• Priority households are entitled to 5 kg of food per person each month.
• Families eligible for the Antyodaya Anna Yojana (AAY) receive 35 kilograms each month.

Issues:

Census data and population figures:

• The NFSA coverage is still based on the population figures from the 2011 census.
• In its affidavit, the Union stated in court that the Act required coverage to be updated based on the most recent reported census statistics.
• The NFSA coverage, however, cannot be estimated because the 2021 census has been postponed indefinitely and no date has been announced.

What Related Initiatives Has the Government Launched?

• • National Food Security Mission
  • Rashtriya Krishi Vikas Yojana (RKVY)
  • Integrated Schemes on Oilseeds, Pulses, Palm oil and Maize (ISOPOM)
  • Pradhan Mantri Fasal Bima Yojana