AGARTALA, May 2 (TIWN): With the second Covid-19 wave once again rendering millions of poor jobless and triggering another exodus of migrants, the Central government today decided to distribute 5 kg grains free of cost to all the 800 million beneficiaries of the National Food Security Act over and above their regular quota in May and June 2021. Tripura food Minister Manoj Kanti Deb in a press meet has thanked the Prime Minister for his announcement and confirmed that Tripura too will get the benefit in this May and June month.

The scheme which will be along the lines of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) launched during the first Covid wave last year, will cost the Centre Rs 26,000 crore in subsidies over and above its usual PDS subsidy bill of Rs 1.8 trillion in FY22.   

Assuming that the offtake of extra free grains in May and June is similar to last year’s level, the additional grain requirement this time around will be about 8 million tonnes over and above the normal PDS distribution in May and June, which should not be of much concern as data shows that food grains stocks the in Central Pool as on April 1 are almost 77.23 million tonnes, or 3.5 times than the buffer requirement. 

Not only this, the extra subsidy burden on account of free distribution of grains should not concern the government as much this year as the last, because unlike the end of FY21, FCI does not have any outstanding dues on its books from previous borrowings in Fy-22. 

However, unlike the previous Garib Kalyan Anna Yojana, the government this time has not decided to distribute any free pulses along with wheat or rice, as it simply does not have adequate stocks in its warehouses. 

According to top government sources, as on April 1, India had pulses stocks of 1.4-1.5 million tonnes in its warehouses, which is lower than the buffer norm of 2 million tonnes. 

Last year, when the Centre had decided to distribute 1 kg of free pulses per month to all the 200 million NFSA households, it was sitting on a huge pile of over 3 million tonnes.  However, this year, it so far does not have that luxury when it comes to pulses. Moreover, sources said pulses procurement by Nafed (the main agency that deals in pulses in India) has also not picked up as prices are ruling above the Minimum Support Price.