Centre released Rs.2,94,718/- Crore towards Food Subsidy to Food Corporation of India and State Governments under PMGKAY and NFSA in 2021-22

New Delhi : For procurement operations under MSP and seamless distribution of foodgrain under Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY) and National Food Security Act 2013 (NFSA), during Financial Year 2021-22 Department of Food & Public Distribution released Rs.2,94,718/- Crore towards Food Subsidy to Food Corporation of India and State Governments under both DCP and non-DCP operations put together against Revised Estimates of Rs.2,92,419.11 Crores.  This release of food subsidy is about 140% of the Food Subsidy released during 2020-21 and about 267% of the Food Subsidy released during 2019-20, as per following details:-

( Rs. Crores )

Year Budget Estimates Revised Estimates Actual Expenditure % Expdr w.r.t. RE
2019-20 1,88,102.21 1,10,187.13 1,10,187.13 100.00
2020-21 1,19,302.22 4,30,414.77 5,47,609.31 127.23
2021-22 2,46,616.00 2,92,419.11 2,94,718.54 100.79

.   Includes Rs.3,39,236/- Crore budgetary provision to NSSF Loan liability

During financial year 2021-22, Department of Food and Public Distribution has achieved 99.83% of Expenditure by incurring Rs.3,04,361/- Crores against Net Allocation of Rs.3,04,879/-Crores

Department of Food & Public Distribution always look forward to ensure that the benefits of its Schemes reach out to various vulnerable sections of the society.  In this direction during financial year 2021-22, Department of Food & Public Distribution released about Rs.24,000/- Crore for the benefit of Scheduled Castes, Rs.12,000/- Crore for Scheduled Tribes and more than Rs.400/- Crore for North Eastern Region.

 In order to address the challenges posed by COVID-19 pandemic, Government of India has released additional foodgrain free of cost @ 5 kg per person per month, to more than 80 Crore National Food Security Act (NFSA) beneficiaries under Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY), over and above their entitlement of foodgrain under NFSA.  This additional allocation has been made in 5 phases so far from April 2020 to March 2022.  Since inception a total of 758 LMT of foodgrain has been allocated under the Scheme with financial implication of Rs.2.60 Lakh Crore.  PMGKAY has now been extended till September, 2022, which will involve an additional allocation of 244 LMT of foodgrain with additional financial implication of about Rs.80,851/- Crore, as per details furnished below:-



Period Allocation

(in LMT)

Financial Implication

 (Rs. Crore)

I April – June, 2020 321.00 Rs.1,13,000.00 Crore
II July – Nov, 2020
III May – June, 2021 79.46 Rs. 26,602.00 Crore
IV July – Nov, 2021 198.78 Rs. 67,266.00 Crore
V Dec’21 – March’22 159.05 Rs. 53,344.52 Crore
VI April – Sept 2022 244.00 Rs.80,850.67 Crore
  GRAND TOTAL 1,002.29 Rs.3,41,062.87 Crore

A total of 1175 LMT of foodgrain that include procurement of Wheat during the Rabi Marketing Season 2021-22 and Paddy in Kharif Marketing Season 2021-22 has been achieved with a direct payment of Rs.2.31 Lakh Crore of Minimum Support Price benefitting more than 154 lakh farmers.  Further, procurement of wheat has recently commenced in RMS 2022-23 in the States of Madhya Pradesh, Haryana, Punjab and Uttar Pradesh and the Department is taking all required steps in this regard.

Government of India has made a number of schematic interventions in order to support the sugar industry and extended financial assistance to sugar mills thereby clearing cane dues of farmers.  To this direction financial assistance was given under various sugar sector schemes – Scheme for Assistance to Sugar Mills for Sugar Season 2018-19, 2019-20 & 2020-21 (Export Schemes); Scheme for Creation and Maintenance of Buffer Stock (Sugar Season 2018-19 – 30 LMT) & (Sugar Season 2019-20 – 40 LMT), Scheme for Sugar Subsidy for extending financial assistance to sugar Mills for enhancement and augmentation of ethanol production capacity, etc. and loan under Sugar Development Fund.  During Financial Year 2021-22, Government of India

 Production of ethanol has increased from 173 crore litres in ESY 2019-20 to 302 crore litres during ESY 2020-21 (October 2020 to Sept 2021). Thus, Ethanol blending has increased by 62%, from 5% in ESY 2019-20 to 8.1% in ESY 2020-21. Production capacity of ethanol in the country has also increased to 825 crore litres as on 30.09.2021 which is sufficient to meet target of 10% ethanol blending in ESY 2021-22.  This production capacity has further increased to 849 crore litres till 31.3.2022.  During the financial year 2021-22, Rs.160 Crore were released to NABARD, the nodal bank, under the Ethanol Interest Subvention Scheme of the Department.  The cumulative released under the Scheme till 2021-22 is Rs.360 Crores.

Total Central Pool Storage Capacity with FCI and Stage Agencies is 958.53 LMT.  Further, Department of Food & Public Distribution has been implementing a Central Sector Scheme for Construction of Godowns with focus on North Eastern Region.  Total outlay of the Scheme is Rs.455.72 Crores and till financial year 2021-22 a cumulative amount of Rs.248.72 Crores has been released under the Scheme.  In order to achieve the physical target set under the Scheme, the validity of the Scheme has now been recommended by the Standing Finance Committee for extension by one year beyond 31-March-2022.

Apart from the above, during financial year 2021-22, Government of India released funds under other flagship Schemes of Department of Food & Public Distribution viz. Integrated Management of Public Distribution System, Centrally Sponsored Pilot Scheme for Fortification of Rice and its Distribution under Public Distribution System, etc.

  • The Integrated Management of Public Distribution System (IMPDS) Scheme with a total outlay of Rs.127.30 Crore is being implemented by the Department.  Till financial year 2021-22, a cumulative total of Rs.81.61 Crore has been released under the Scheme.

 One Nation One Ration Card is an important component under the IMPDS Scheme.  Presently a monthly average of about 2.5 Crore portability transactions (including inter-State, intra-State and PM-GKAY foodgrain transactions) are being recorded in the States/UTs under ONORC. So far, a cumulative total of more than 63 Crore portability transactions have been recorded under the ONORC plan, which comprises of 56 Crore portability transactions performed during the pandemic period.

Centrally Sponsored Pilot Scheme for Fortification of Rice and its Distribution under Public Distribution System, with total outlay of Rs 174.64 Crore was implemented by this Department.  Now pursuant to the announcement made by Hon’ble Prime Minister in his Independence Day Speech on 15-Aug-2022 that the Government will fortify rice given under its various Schemes by 2024, the Rice Fortification Scheme has now been approved for pan-India implementation in the country in a phased manner.  Government of India will incur an additional annual expenditure of Rs.2679/- Crore (approx.) upon its pan-India implementation.

To ensure adequacy of foodgrain in the country thereby making appropriate Budgetary support, bring transparency & efficiency in the Public Distribution System and address the challenges arising out of COVID-19 pandemic, Department of Food & Public Distribution made a number of policy interventions and corresponding budgetary provision during financial year 2021-22.

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