Interim budget may see a ₹2.2 tn food subsidy bill
NEW DELHI : The Union government may allocate ₹2.2 trillion towards food subsidy in the forthcoming budget to pay for higher farm support prices and an extended free food scheme, a top official said. The allocation, which could be 10% higher than last year’s, would be at a time the government is focused on ensuring food security and keeping food inflation in check. While the food subsidy allocation for 2023-24 was ₹1.97 trillion, the outgo in the current fiscal has already crossed ₹2 trillion, Union food and public distribution department’s secretary Sanjeev Chopra said.
“Right now, the food subsidy is ₹2 trillion," Chopra said in an interview. “I think there may be a 10% increase in the total food subsidy bill next year", considering the hike in minimum support price (MSP), extension of Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) and other costs involved. The higher allocation is expected considering a hike in the MSP for wheat and paddy crops, and another five-year extension in PM-GKAY, the government’s free food distribution scheme for the poor.
“This will require the department to procure 40.8 million tonnes of rice every year beyond building the buffer stock," Chopra said. A total of ₹11.80 trillion will be required for five years, estimating some nominal increase every year. However, he did not specify whether the allocation will be announced in the interim budget to be presented on 1 February.
“The budget estimate of food subsidy depends on the quantity of wheat and rice likely to be procured and distributed under MSP operations," said former agriculture secretary Siraj Hussain. “It also depends on the MSP for wheat and paddy. To reflect the above, there may be a moderate rise in allocation." The department
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