The Indian government said on Friday that they would cover the costs of free food grains provided under the National Food Security Act (NFSA) beyond December 2023. The National Food Security Act’s ration distribution will now be free for 81.3 crore low-income people starting in January 23. Under the NFSA, sometimes known as the food legislation, the government currently provides 5 kilogrammes of food grains to each person each month for a cost of Rs 2-3 per kg. Families enrolled in the Antyodaya Anna Yojana (AAY) receive 35 kg of food grains each month.
Rice and wheat are provided to the underprivileged under the NFSA for Rs 3 per kg each. This is in addition to the NFSA’s monthly provision of heavily subsidised food grains.The most recent Cabinet decision, according to government officials, is a “new year present for the country’s underprivileged,” since more than 80 crore people will now receive free food grains under the NFSA. The recipients won’t have to pay even one rupee to receive food supplies. They noted that the Center will now allocate over $2 lakh crore annually to this programme.
By discontinuing the free food programme from the epidemic era, the government will save at least 1.5 lakh crore over the following 12 months since they will only pay on one food scheme rather than several programmes, according to an official who wished to remain anonymous. Reuters cited a dealer with a multinational trade business in New Delhi as saying, “The ending of prior scheme means the government can now sell 2 to 3 million tonnes in the open market to calm prices.”
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