₹69,000 crore vanishes in grain leakages: Where is India’s free ration going?
Public Distribution System (PDS) never reach their intended beneficiaries and the economic loss to the exchequer is forecast at over ₹69,000 crore annually, a new report by the Indian Council for Research on International Economic Relations (ICRIER) has revealed. The analysis indicates that around 20 million tonnes of rice and wheat, meant to feed 814 million people under government programs, are either diverted to the open market or exported.
«This is an annual loss. Where is it going? Maybe it is being diverted to the open market or even for exports,» said Ashok Gulati, Infosys Chair Professor at ICRIER and one of the authors of the policy brief, along with Raya Das and Ranjana Roy.
The report draws on data from the Household Consumption Expenditure Survey (HCES) and the Food Corporation of India’s (FCI) monthly offtake figures from August 2022 to July 2023. It highlights that despite improvements, the leakage of subsidised grains remains substantial, causing both financial and logistical strain.
The 20 million tonnes of annual leakage represent a significant improvement from the 46% wastage reported in 2011-12. Still, it underscores a pressing issue: a substantial portion of free or subsidized grains is siphoned off before reaching the needy. Efforts like the introduction of point-of-sale (POS) machines in ration shops in 2016 have helped reduce leakages but have not eradicated the problem.
States such as Arunachal Pradesh, Nagaland, and Gujarat report the highest rates of leakage, with the northeastern
