Cabinet extends sugar subsidy for 1.89 crore AAY families till March 2026

In a "sweet" news for Antyodya Anna Yojna (AAY) beneficiary families, the Union Cabinet has approved the extension of the scheme of sugar subsidy for distribution through Public Distribution Scheme (PDS) till March 31, 2026. With the approval of the Cabinet, chaired by Prime Minister Narendra Modi, the government will continue to give subsidy at the rate of one kg per family per month. States have the responsibility to procure and distribute sugar.

The approval is expected to extend benefits worth over ₹1,850 crores during the period of 15th Finance Commission (2020-21 to 2025-26). "Under the scheme, the central government gives subsidy of Rs 18.50 per kg per month of sugar to AAY families of participating states. The approval is expected to extend benefits of more than Rs 1,850 crore during period of 15th Finance Commission (2020-21 to 2025-26). The scheme is expected to benefit about 1.89 crores AAY families of the country," an official statement said.

While the government is already providing free ration under the Pradhan Mantri Garib Kalyan Anna Yojna (PM-GKAY), the measures have been supplemented with the sale of 'Bharat Atta', 'Bharat Dal', tomatoes and onions at affordable prices through government-backed cooperatives. So far, about 3 lakh tons of Bharat Dal (Chana dal) and about 2.4 lakh tons of Bharat Atta have already been sold to benefit ordinary consumers.