PM Garib Kalyan Ann Yojana: Estimated Cost for Distribution of Food Grains

Prime Minister Narendra Modi had yesterday announced the extension of Pradhan Mantri Garib Kalyan Ann Yojana till the end of November 2020. He said that the PMGKAY scheme is extended from July till the end of November 2020. During this five-month period, more than 80 crore people will be provided 5 kg free wheat/rice per month along with 1 kg free whole chana to each family per month.

As per reports, the Department of Food and PD has worked out estimated cost under TPDS @ 5 Kg per person per month for three months i.e. April-June, 2020 would entail an estimated subsidy of Rs. 44,131 crore taking the estimated Economic Cost of Rs. 37,267.60/MT for rice and Rs. 26,838.40/MT for wheat (as per BE 2020-2021).

Further, while under NFSA, the expenditure towards intrastate transportation and handling charges for movement from FCI depots to Fair Price Shops (FPSs) as also dealer's margin etc. is shared between Govt. of India and States/UTs as per the sharing pattern and norms for expenditure on this account as per rules framed under NFSA. As Govt. of India is bearing the entire expenditure towards this Scheme, an expenditure of Rs 1,930 crore would be required to be met towards transportation & handling and FPS dealers' margins etc. by Govt. of India as per the existing norms in this regard under NFSA.

ln view of the above, the total estimated expenditure to be borne by Govt. of India towards foodgrain subsidy and expenditure on account intrastate transportation, dealer's margin including additional dealer's margin towards the use of ePOS would be Rs. 46,061crore.

On the basis of above, an estimated cost of 32 million tonnes (12 Million Tonne for April-June 2020 and 20 LMT for July- November 2020) for distribution of foodgrains (Rice and Wheat) from April to November 2020 will be approx. Rs 1,22,829 crores.

As per the Department of Consumer Affairs note, the estimated expenditure towards the distribution of pulses is Rs 5,000 crore for the period April-June 2020. Accordingly, the estimated expenditure for the distribution of pulses during the period April-November 2020 will be Rs 11,800 crore approx.

In addition to above, the estimated cost for distribution of foodgrains to migrant labours for the period of two months is Rs 3,109.52 crore. The foregone cost of Central Issue Price for foodgrains which comes to approximately Rs.1,400 crore per month entails an expenditure of approximately Rs.11,200 crore.

Thus, the estimated cost for distribution of food grains (Rice and Wheat) and pulses will be Rs 1,48,938 crore approx.