Government allocates additional 55 lakh tonnes rice instead of wheat under PMGKAY

The Centre on Wednesday said it has allocated additional 55 lakh tonnes of rice in place of wheat under the free ration scheme PMGKAY on demand from the states amid efforts to scale up delivery of fortified rice under the public distribution system from next year.

Addressing a press conference, food secretary Sudhanshu Pandey clarified that this is being done not because of the likely fall in the government's wheat procurement following expected drop in output and rise in exports.

Pandey asserted that wheat consuming states like Punjab, Haryana and Rajasthan will continue to get wheat under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

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The decision to provide additional rice in place of wheat under the PMGKAY was taken after due consultation with all states and the additional subsidy burden would be around Rs 4,800 crore, he said.

Under the National Food Security Act (NFSA), foodgrains are provided at subsidised rates by the Centre via ration shops, also called Public Distribution System (PDS), to over 80 crore beneficiaries.

Whereas under the PMGKAY — launched in March 2020 to reduce the hardships of people during the coronavirus pandemic — about 5 kg free grains are distributed to the NFSA beneficiaries.

The PMGKAY has been extended several times and is now valid till September 2022.

Citing reasons for allocating rice in place of wheat under the PMGKAY, the secretary said the Centre is making efforts to position enough stock of fortified rice for PDS distribution to NFSA beneficiaries from next year.

At present, the government has a surplus rice stock, more than the NFSA requirement of 35 million tonnes. The government's rice procurement was about 60 million tonnes last year and it would be around the same level this year, he said.

In the current year, the government is covering distribution of fortified rice in aspirational and heavy burdened districts, and also in the ICDS (Integrated Child Development Services) and PM-Poshan.

"Next year, we will be distributing fortified rice for the entire PDS. Therefore, it is incumbent upon the government to position its stock in such a way we get the fortified rice and distribute the same next year," Pandey said.

Further, the secretary explained that since rice fortification happens at the time of milling, it is necessary to move out the existing stock from millers and get them distributed under the existing schemes.

The government is currently having a surplus fortified rice stock of 83,000 tonnes. About 17.5 million tonnes is the requirement of fortified rice for the PM-Poshan, ICDC and aspirational districts this year, against which 8.6 million tonnes is already available he said.

"This means we will be able to meet the fortification target this year as well as position ourselves for scaling up this operation of fortified rice distribution under PDS in next year," Pandey said.

Due to these factors, the Centre has allocated additional 55 lakh tonnes of rice in place of wheat under the PMGKAY, and is also in talks with states for distribution of rice in place of wheat under NFSA, he added.

Stating that distribution of old rice stocks has several benefits, Pandey said this will reduce strain on logistics because fortified rice will be distributed from mills located in consuming states.

This will also help states to avoid any delay in reimbursement of subsidy on rice. Since rice procurement is decentralised, states procure the grain on behalf of the Centre and get it milled for distribution under PDS. The states are paid the subsidy after the stocks are distributed via PDS, he said.

It is a "win-win situation" for both the Centre and states, he said and added, "All these decisions are taken as part of the overall grain management policy."

Earlier, the government followed a fixed ratio for rice and wheat distribution under the NFSA keeping in mind the higher subsidy cost incurred for rice.

"It makes sense to offload additional stocks when you have surplus rice so that you position yourself for distribution of fortified rice," he added.

Prime Minister Narendra Modi in his address on the 75th Independence Day had announced that fortified rice will be provided through all central government schemes by 2024.