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Central Government Extends Scheme of Sugar Subsidy for AAY Families Until 2026

The purpose of extending the scheme of sugar subsidy is to alleviate the financial strain on the most economically disadvantaged groups in society.

Shivam Dwivedi
Central Government Extends Sugar Subsidy Scheme for AAY Families Until 2026 (Photo Source: Pexels)
Central Government Extends Sugar Subsidy Scheme for AAY Families Until 2026 (Photo Source: Pexels)

The Union Cabinet, led by Prime Minister Narendra Modi, has approved an extension of the sugar subsidy program for Antyodya Anna Yojna (AAY) families through the Public Distribution Scheme (PDS) for an extra two years, until March 31, 2026. This is a significant step towards the sweetness of platter of the poorest citizens. This extension, indicative of the Central Government's unwavering commitment to the welfare of the nation's citizens, particularly those grappling with economic challenges, reinforces its dedication to ensuring that even the most vulnerable have access to basic necessities.

The sugar subsidy scheme not only provides financial relief but also aims to improve the health of the underprivileged by supplementing their diets with energy-boosting sugar.

Subsidy Details

Under the scheme, the Central Government offers a monthly subsidy of Rs.18.50 per kg of sugar to AAY families in participating states. This approval is anticipated to generate benefits exceeding Rs.1850 crore during the 15th Finance Commission period (2020-21 to 2025-26). Approximately 1.89 crore AAY families across the country are expected to benefit from this extension.

Synergy with Existing Initiatives

The Government of India has been actively supporting citizens through various initiatives, including the Pradhan Mantri Garib Kalyan Anna Yojna (PM-GKAY), which provides free ration. In addition to this, measures such as the sale of 'Bharat Atta,' 'Bharat Dal,' as well as tomatoes and onions at affordable prices, have been implemented to ensure an ample supply of food beyond the PM-GKAY.

Notably, significant quantities of Bharat Dal (Chana dal) and Bharat Atta have already been sold, benefiting ordinary consumers and aligning with the government's vision of 'Food for All, Nutrition for All.'

Financial Impact and Beneficiaries

The extension of the sugar subsidy scheme is projected to have a substantial financial impact, with benefits extending well into the next five years. The Government's commitment to providing essential commodities at subsidized rates underscores its dedication to fulfilling the 'Modi ki Guarantee' of ensuring food security and nutrition for all.

With this recent approval, the Government will persist in providing subsidies to participating states for the distribution of sugar to AAY families through the PDS, maintaining the rate of one kg per family per month. States, in turn, are entrusted with the responsibility of procuring and efficiently distributing sugar to eligible beneficiaries.

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