Centre 'may be inclined' to extend food scheme for poor

Vibha Sharma

New Delhi, September 14

With the deadline drawing close, all eyes are on whether the Centre will extend the Pradhan Mantri Garib Kalyan Anna Yojana beyond September 30, given the current wheat stocks. Most states, including those ruled by the BJP, want the scheme to continue, which has so far been extended six times, the last being on April 1.

Sources say the Centre is considering extending the food programme, keeping in mind the approaching festival season and the political situation. “The Centre may be inclined to extend the programme beyond September 30,” they say. As per the FCI website, the current rice stock in the country is 244.63 LMT (lakh tonnes) and wheat 248.22 LMT. While paddy procurement will begin next month, the total quantity of unmilled paddy lying with the FCI and state agencies is 161.60 LMT, which is enough.

However, the government has to make do with the existing wheat stock for the next six months when the new crop arrives. At the current consumption rate, 20 to 21 LMT wheat is required every month. As per the stocking norms, 44.60 LMT as operational stock and 30 LMT as strategic reserves should be available on April 1 when the next crop starts arriving.

However, the heat wave in Punjab and Haryana affected the wheat crop, resulting in shrivelled grains and the next crop is expected to arrive in the mandis beginning April 1, 2023. Till then, the country has to rely on its existing stocks. Therefore, the government had increased the quota of rice in free ration, which is being objected to by states where wheat is consumed, the sources said.

The Expenditure Department under the Finance Ministry is believed to have advised against extending the scheme on food security and fiscal grounds.The government has already placed restrictions on the export of wheat and flour, triggering a jump in the demand for wheat flour overseas.

Kharif production is expected to fall by 10-12 million tonnes this season due to poor rains in certain areas a well as crop diversification.