In News:

The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), launched in March 2020 as a COVID-19 relief measure, has evolved into one of the world’s largest food security initiatives.

Implemented under the National Food Security Act (NFSA), 2013, the scheme provides free rice and wheat to eligible households through the Public Distribution System (PDS). While it has ensured nutritional security for ~81 crore people, the soaring food subsidy bill (?2.03 lakh crore in FY26) has prompted the Union government to initiate a review for fiscal sustainability.

Key Features of PMGKAY

• Coverage: ~81.35 crore beneficiaries (75% rural, 50% urban population).
• Entitlements:
  • Antyodaya Anna Yojana (AAY): 35 kg per family per month.
  • Priority Households (PHH): 5 kg per person per month.
• Annual Distribution: 56–58 million tonnes of foodgrains.
• Mode of Delivery: ~5.4 lakh fair price shops (FPSs).
• Cost: Entirely free of cost since January 2023 (earlier, NFSA beneficiaries paid nominal prices).
• Transparency Measures: 83% Aadhaar-based e-KYC completed; 204 million household ration cards seeded.

Current Review and Concerns

• Rising Subsidy Burden
  • Food subsidy bill has crossed ?2 lakh crore in FY26, widening the fiscal strain.
  • Gap between economic cost (procurement, storage, transportation) and issue prices has grown, since prices were never revised after NFSA’s enactment.
• Ineligible Beneficiaries
  • About 10% of the 800 million listed beneficiaries were found in government databases (taxpayers, vehicle owners, company directors, etc.).
  • Several beneficiaries did not lift their share of grains for months.
  • States like Rajasthan, Odisha, and Madhya Pradesh have started removing ineligible ration cards.
• Re-verification Drive
  • States asked to reverify ration cards issued a decade ago to weed out ineligible households and add new ones.
  • Field verification and inter-ministerial data convergence with CBDT, CBIC, MCA, Road Transport, and PM-Kisan databases are being carried out.
• Equity Concerns
  • In some cases, single-member AAY households received 35 kg/month, raising questions on fairness.
  • Conversely, deserving families remain excluded due to outdated lists.

Reform Measures Underway

• Database Cleansing: Aadhaar-based authentication to ensure rightful targeting.
• Infrastructure Creation: ?1.25 lakh crore project for modern grain storage in cooperatives and integration of PACS godowns into the supply chain.
• Policy Options:
  • Introducing a partial cost-sharing model for better-off sections.
  • Rationalising coverage to focus more on nutritional outcomes (shift to nutri-cereals).
  • Savings redirected towards agri-R&D, irrigation, and value chain efficiency.