BIG Cabinet Decision: PM Garib Kalyan Anna Yojana discontinued; poor to get 5kg free ration under NFSA

The Narendra Modi government today discontinued the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) as the Cabinet did not give any extension to the scheme. Citing improvement in the economic prospects and opening of the markets, the Cabinet today decided to do away with the PMGKAY. However, keeping in mind the poor, the government today said that it will provide rations to the needy under the National Food Security Act for free. The announcement was made by Union Minister Piyush Goyal after a cabinet meeting.

Addressing a press conference, Union Minister Piyush Goyal said, "We all know that the Central government, under the National Food Security Act, provides rice at Rs 3 per kg and wheat at Rs 2 per kg. Now, PM Narendra Modi has taken a historical decision. Now the poor will get rice and wheat for free under the NFSA. Around 81.35 crore people covered under the NFSA will get food grains for free and won't have to pay for them. Those who used to get 35 kg  (21 kg rice and 14 kg wheat) under the Annadata yojana will continue to get it for free. Other people will get 5kg per person for free. The centre will now bear the burden of around Rs 2 lakh crore for food security."

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Under the PMGKAY scheme, the Modi government provided 5 kilograms of wheat and rice free of cost to 80 crores of poor every month. This is over and above the foodgrains supplied under the National Food Security Act (NFSA). So, the Centre used to give 5kg food grain and the state used to give 5kg food grain per person. Later, some states made changes accordingly to balance the amount of wheat and rice. But now people will get 5 kg food grain (4kg wheat and 1kg rice) per person as they used to get before the covid. 

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— Office of Mr. Anurag Thakur (@Anurag_Office) December 23, 2022

In September, the government had extended PMGKAY for three months till December 31. Agriculture Minister Narendra Singh Tomar had said the Centre has provided free foodgrains worth Rs 3.9 lakh crore since April 2020 under the PMGKAY. The PMGKAY scheme was launched in April 2020 and has been extended several times. In September-end, the scheme was extended for a further period of three months up to December 2022 (Phase VII).