Rs. 107,634.80 Crore in 2020-21, Rs. 130,560.08 Crore in 2021-22 and Rs. 39,996.15 Crore in 2022-23 (till 12th July) cost incurred by FCI on PMGKAY

The Union Minister of State for Consumer Affairs, Food and Public Distribution, Ms. Sadhvi Niranjan Jyoti in a written reply to a question in Rajya Sabha today informed that the Department of Food and Public Distribution (DFPD) deals with the release of food subsidy to Food Corporation of India (FCI) and States which have adopted Decentralized Procurement (DCP). States are allocated food grains at subsidized rates under National Food Security Act, 2013 (NFSA) and Other Welfare Schemes (OWS). Difference between Economic Cost and Central Issue Price (CIP), at which food grains are issued to States, is reimbursed to FCI as food subsidy. In case of DCP States, food subsidy is directly released to States by Government of India for quantity of food grains procured and distributed by them under NFSA and Other Welfare Schemes. FCI further releases funds to Non-DCP States for quantum of food grains received by FCI from Non-DCP States. The subsidy is provided to DCP States and FCI, which is the instrument of the Government of India for procurement and distribution of wheat and rice under NFSA and Other Welfare Schemes and for maintaining the buffer stock of food grains as a measure of food security.

Cost incurred by Food Corporation of India on food grain issued to States under PMGKAY during the year 2020-21 and 2021-22 and 2022-23 (up to 12.07.2022) are enclosed at Annexure-I.

Further, details of food subsidy released to Decentralized Procurement (DCP) States by Department of Food & Public Distribution during 2020-21, 2021-22 and 2022-23 up to 12.07.2022 under PMGKAY are enclosed at Annexure-II.

The provisional/advance food subsidy is released to all (DCP) States on the basis of their quarterly claims which is an ongoing and continuous process. These claims are processed keeping in view the opening and closing balance of stocks, procurement, allocation and distribution of food grains, FCI’s reconciliation, Utilization Certificates received, Economic Cost of food grains etc., among others under the said scheme.

Department of Food & Public Distribution, Government of India has been continuously releasing amount of food subsidy to the States Government against their subsidy claims under PMGKAY.

Annexure-I

Annexure-II

Details of funds released by DFPD to DCP States under PMGKAY as on 12.07.2022

                                         (Rs. in Crores)