Centre ups wheat allocation after two years under PMGKAY, but states still face 12-20% shortfall vs 2022
The Indian government has increased wheat allocation for nine states under the National Food Security Act (NFSA) and the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) from October-November 2024. The new allocation, while higher than the current, remains 12-20% lower than the pre-cut levels from May 2022. The 2022 reduction was due to decreased wheat stock and rising prices.
Although the Centre increased wheat allocation under the National Food Security Act, 2013 / Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for nine of the 10 states/UT after two years, the states will still receive 12-20% less wheat per month compared to their pre-cut allocations in May 2022.
According to the Union Food Ministry order issued on September 24, 2024, effective from October-November 2024, the nine states, which account for 54.41 crore (67%) of total the NFSA/PMGKAY beneficiaries, will collectively receive 12.26 lakh metric tonnes of wheat per month, an increase of 3.09 lakh metric tonnes from their current allocation of 9.17 lakh metric tonnes, but 2.81 lakh metric tonnes (18.64%) lower than their pre-cut allocation of 15.07 lakh metric tonnes before June 2022.
On May 13, 2022, the Centre reduced the wheat allocations for nine states and one UT — Bihar, Gujarat, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Tamil Nadu, Uttar Pradesh, West Bengal, and Delhi — starting June 2022. To compensate, the Centre gave an equivalent increase in rice allocation. However, Delhi does not figure in the list and will continue to receive its current allocation of 22,433.59 metric tonnes, down from 29,705.43 metric tonnes before the cut in May 2022.
Union Food Secretary Sanjiv Chopra had announced on September 18 that a Committee of Ministers has approved an increase of 35 lakh metric tonnes of wheat under the PMGKAY/NFSA
Under the NFS Act, 2013, beneficiaries are entitled to receive food grains at subsidised rates — rice at `3/kg, wheat `2/kg, and coarse grains `1/kg. In November last year, the Centre decided to provide free foodgrains to NFSA beneficiaries under PMGKAY for five years from January 1, 2024.
This could be the first step towards restoration of the wheat quota under NFSA, which was reduced by the government on May 13, 2022 following a dip in wheat production and stock and rise in prices that year.
Wheat stock in the central pool fell to 303.46 lakh MT as on May 1, 2022 from 525.65 lakh MT a year ago. As per the data available with the Food Corporation of India, wheat stock in the central pool stood at 251.46 lakh MT as on September 1, 2024.
The wheat allocation reduction became one of the issues during the 2024 Lok Sabha elections, with states like Uttar Pradesh and Gujarat pushing for more wheat under the food security law. Odisha BJP government also demanded an increase in the state’s wheat allocation, which became zero from 24,830.48 metric tonnes per month in May 2022. It has been increased to 19,906.01 metric tonnes.
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