Current Affairs 2024 - Pradhan Mantri Garib Kalyan Anna Yojana

MA

Mayuri

Feb, 2025

2 min read

‍Introduction‍

The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) has been a crucial intervention in addressing food security concerns, especially during the Covid-19 pandemic. Recently, the Indian government announced its extension for an additional five years, signaling a continued focus on ensuring access to essential foodgrains for vulnerable populations. This decision integrates short-term relief measures with the larger framework of the National Food Security Act (NFSA), 2013, providing a safety net for millions. However, while the move has immediate benefits, it also presents challenges related to fiscal sustainability and long-term policy effectiveness.

What is PMGKAY?

  • Origin and Purpose: Launched in 2020 during the Covid-19 pandemic to provide 5 kg of free foodgrains per person to eligible households under the NFSA.
  • Key Extensions: Initially set to end in December 2022, extended till December 2023, and now for another five years.
  • Scale and Impact: Over 1,118 lakh metric tonnes of foodgrains allocated since inception, with a financial outlay of ₹3.9 lakh crore.

About the National Food Security Act, 2013

  • Rights-Based Approach: Marks a shift from welfare to rights-based food security, legally covering up to 67% of the population.
  • Beneficiaries: Includes Antyodaya Anna Yojana (AAY) and Priority Households (PHH).
  • Key Provisions:
    • AAY families: 35 kg of foodgrains per month.
    • PHH families: 5 kg per person per month.
    • Eldest woman as the head of the household for issuing ration cards.

Integration of PMGKAY with NFSA

  • In January 2023, the PMGKAY was merged with the NFSA, providing rations at no cost to AAY and PHH families.
  • This move eliminated pandemic-specific provisions while continuing the free ration component as a universal benefit.

Impacts of the Extension of PMGKAY

Positive Impacts:

  1. Food Security Assurance: Ensures uninterrupted access to food for vulnerable populations, addressing immediate nutritional needs.
  2. Crisis Resilience: Acts as a safety net during natural disasters or economic disruptions.
  3. Support to Farmers: Boosts rural economies through large-scale procurement of foodgrains.
  4. Social Welfare: Promotes equity and community well-being, reinforcing collective responsibility.
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Negative Impacts:

  1. Fiscal Strain: The program’s long-term cost, including rising procurement expenses, could burden the government budget and widen the fiscal deficit.
  2. Market Disruptions: Heavy subsidies can distort market prices, affecting private traders and the agricultural sector.
  3. Dependency Culture: Risks fostering reliance on government aid, hindering self-sufficiency.
  4. Policy Populism: May encourage unsustainable competitive populist measures, putting additional pressure on public finances.
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Way Forward

Short-Term Measures:

  1. Digital Food Vouchers: Introduce e-Rupi vouchers for targeted food purchases to ensure efficient and transparent distribution.
  2. Crowdsourced Distribution Systems: Leverage technology platforms for redistributing surplus food to the needy, fostering community participation.
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Long-Term Strategies:

  1. Economic Empowerment Programs: Focus on skill development, employment generation, and entrepreneurship to enhance self-reliance.
  2. Gradual Subsidy Reduction: Phase out subsidies incrementally while implementing alternative support mechanisms to prevent economic shocks.
  3. Strengthening Agricultural Infrastructure: Improve procurement, storage, and supply chain management to reduce wastage and ensure efficient distribution.
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Conclusion‍

The extension of the PMGKAY demonstrates the government’s commitment to addressing food security challenges and ensuring welfare for marginalized sections. However, achieving a balance between short-term relief and long-term sustainability is essential. By coupling the program with economic empowerment initiatives and prudent fiscal policies, the government can ensure that food security measures align with broader developmental goals.

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