Grain subsidy to cost government Rs 11L crore over 5 years

The Indian government is planning to extend the free foodgrain scheme, Pradhan Mantri Garib Kalyan Anna Yojana, for the next five years. The total subsidy for this extension is estimated to be around Rs 11 lakh crore. Under this scheme, 80 crore poor beneficiaries are entitled to receive 5kg of rice, wheat, and coarse grain for free. The subsidy expenditure is expected to increase by 5-6% annually due to the rise in minimum support price and economic costs. The government may also need to address the surplus of fortified rice stocks.