India to provide free ration to poor people for one year under food law

In a significant move, the Narendra Modi government on Friday announced that it will grant free rations for a whole year under the National Food Security Act (NFSA) for 81.35 crore impoverished people.

The government presently supplies 5 kilogrammes of food grains to each person, every month, under the NFSA, popularly known as the food law, at a cost of Rs 2-3 per kg. Antyodaya Anna Yojana (AAY)-covered families receive 35 kg of food grains each month.

Under the NFSA, poor persons receive rice for Rs 3 per kg and wheat for Rs 2 per kg.

Union food minister Piyush Goyal informed the union cabinet's decision and stated that the Centre will be responsible for delivering all free food grains under the NFSA. It is estimated that the exchequer will incur yearly expenses of Rs 2 lakh crore.

Meanwhile, the government opted not to prolong the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), a free ration programme that expires on December 31.

The 81.35 crore people covered by NFSA receive a free monthly allocation of five kilogrammes of food grains under PMGKAY. This is in addition to the NFSA's monthly provision of heavily subsidised food grains.

As a result of the most recent Cabinet decision, over 80 crore people would now receive free food grains under the NFSA, according to government officials, who described the decision as the "new year gift for the country’s poor."

The recipients won't have to pay even one rupee to receive food supplies. They claimed that the Center will now spend over Rs 2 lakh crore annually on this programme.