Policy Update
Jay Mudaliar
Background
The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) was launched by the Government of India in March 2020 Operated by the Department of Food and Public Distribution under Ministry of Consumer Affairs, Food and Public Distribution. However, the nodal Ministry is the Ministry OF Finance. A part of its relief efforts to mitigate the economic hardship caused by the COVID-19 pandemic. The scheme, under the Pradhan Mantri Garib Kalyan Package (PMGKP), aimed to provide free food grains to the poor and vulnerable sections of society.
Under this scheme, the government provides 5kg of free food grains per month to more than 80 crore people. This is in addition to the subsidized (Rs 2-3 per kg) ration provided under the National Food Security Act (NFSA) to families covered under the Public Distribution System (PDS). The food grain and the amount may be variable.
Each family is provided with 1 kg of free whole chana per month. The scheme provides free cylinders to BPL (Below Poverty Line) families for three months, per the announcement by the Finance Minister of India.
Functioning
- Target Beneficiaries: PMGKAY covers all beneficiaries under the National Food Security Act (NFSA), Antyodaya Anna Yojana (AAY), Priority Households (PHH), Below Poverty Line (BPL). These beneficiaries are identified through the Public Distribution System (PDS).
- Implementation Mechanism: The food grains are distributed through fair price shops (FPS) under the PDS network. The Food Corporation of India (FCI) procures and supplies these grains to the states, which then distribute them to beneficiaries via FPS.
- Digital Systems: To ensure transparency and proper targeting, PMGKAY leverages technology, including Aadhaar authentication and electronic Point of Sale (ePOS) devices, to prevent leakages and ensure food reaches the intended beneficiaries.
- Funding and Costs: The entire cost of the food grains, including procurement, storage, transportation, and distribution, is borne by the central government.
- States’ Role: States are responsible for the smooth distribution of food grains to eligible beneficiaries. They ensure that stocks are available at FPS and oversee the logistics of delivering these grains to people.
Performance Overview
- Beneficiaries Reached: PMGKAY has been extended multiple times, covering millions of households. As of December 2022, around 80 crore people benefitted from the scheme over its various phases. This constitutes nearly two-thirds of India’s population.
- Food Grain Distribution: As per official data from the Ministry of Consumer Affairs, Food & Public Distribution, more than 1,200 lakh metric tons (LMT) of food grains have been distributed under the scheme between April 2020 and December 2022.
- Budget Allocation and Expenditure: The government allocated substantial financial resources to the scheme. The total financial outlay for PMGKAY till Phase VII (March 2023) was ₹3.91 lakh crore. This made PMGKAY one of the largest food security programs globally.
- Impact on Poverty and Nutrition: PMGKAY is credited with preventing large-scale hunger and malnutrition during the pandemic, particularly among marginalized communities. According to a study by NITI Aayog, it significantly reduced poverty by 5-6 percentage points during the pandemic’s peak, helping stabilize food security in millions of households.
- State-wise Distribution: States like Uttar Pradesh, Bihar, and West Bengal were among the largest beneficiaries due to their high population density under NFSA. These states reported distribution success rates of over 95% as per government figures.
Emerging issues
It has been widely appreciated for addressing food security during the pandemic, there are several emerging issues and concerns regarding its continuation and long-term viability:
- Distribution Delays: There have been cases of delayed distribution in some states due to logistical and administrative bottlenecks.
- Leakages and Corruption: Reports of corruption, leakage of food grains, and black-marketing have emerged in certain areas, undermining the scheme’s effectiveness.
- Economic Strain: The extension of the scheme has placed significant fiscal pressure on the government, with the cost of food subsidies increasing substantially.
- Impacts of climate change on agricultural production: Climate change is likely to lead to reduced crop yields due to extreme weather conditions shifts in suitable cropping patterns and increased vulnerability of the agricultural sector. This could result in food insecurity and increase the burden on food distribution programs like PMGKAY, which will need to adapt to these challenges.
- Wastage of food is a critical issue that significantly hampers the effectiveness of food security programs like the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). The wastage of food in India occurs at multiple levels of the supply chain, including production, storage, transportation, and distribution. This not only undermines efforts to combat hunger but also leads to financial losses, environmental degradation, and resource inefficiencies.
- Access in Remote and Rural Areas: People living in extreme rural or remote areas often face significant challenges in receiving food grains under the PMGKAY. Inadequate infrastructure, difficult terrain, and limited transportation facilities can delay or hinder the delivery of grains to these areas, leaving vulnerable populations without timely access to the benefits, exacerbating food insecurity in these regions.
Way Forward
To enhance the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and ensure its long-term success, the government can consider the following suggestions:
- Strengthen Supply Chain Management:
Ensure seamless distribution by improving the logistics and supply chain management of ration delivery, reducing leakages, and ensuring food reaches the most vulnerable sections without delay. - Digitalization of the Public Distribution System (PDS):
Implement robust digital infrastructure for real-time tracking of food grain distribution. This can prevent pilferage and improve transparency and efficiency. - Targeted Distribution:
Introduce a data-driven approach to ensure that food grains under PMGKAY reach the most deserving beneficiaries. Regular updating of beneficiary lists and inclusion of migrant workers, homeless individuals, and vulnerable populations will further strengthen the scheme’s reach. - Nutritional Support:
Expand the scheme to provide fortified grains, pulses, and cooking oils to ensure not just food security but nutritional security for underprivileged families. - Awareness and Accountability:
Conduct awareness campaigns in rural and urban areas to ensure that beneficiaries are fully informed about their entitlements. This can help minimize underutilization and reduce corruption at local levels. - Expand Beneficiary Base:
Consider including more economically vulnerable sections, such as smallholder farmers and informal sector workers, in the PMGKAY, especially in times of economic downturns or national emergencies.
One Nation One Ration Card (ONORC) – Immediate Implementation
The One Nation One Ration Card scheme should be implemented as soon as possible to ensure the portability of food security benefits across India. This would allow migrant workers and other mobile populations to access their entitled rations from any location in the country.
- Increased Coverage for Migrant Workers:
ONORC will ensure that migrants can access subsidized food grains no matter where they are, reducing the inequalities caused by internal migration. - Ease of Access:
The scheme would streamline access to food grains, ensuring food security for millions who may not always reside in their home state or district. - Reduced Duplication:
By linking ration cards to Aadhaar and integrating state databases, the government can reduce duplicate entries and increase accountability in the system.
In conclusion, PMGKAY and ONORC, when combined, can be powerful tools in enhancing food security and providing efficient, inclusive welfare measures to the most vulnerable sections of society.
Incorporate National Best Practices
Learning from successful models from within India can help improve the efficiency and impact of PMGKAY. Incorporating these best practices can lead to systemic improvements in the functioning of the scheme:
Chhattisgarh’s Public Distribution System (PDS) Reforms: Chhattisgarh’s PDS is considered one of the most successful models in India, thanks to its reforms which have improved transparency, accountability, and access to food grains. Some key elements of Chhattisgarh’s reforms include:
Use of Technology: The state introduced a GPS tracking system for monitoring the movement of food grains from warehouses to ration shops. Beneficiaries are informed through SMS about when the food grains are available at ration shops.
Transparency and Accountability: Chhattisgarh installed grievance redressal mechanisms, toll-free numbers, and community monitoring through Village Vigilance Committees to ensure proper implementation.
Decentralization of Procurement: The state procures food grains directly from local farmers, ensuring the involvement of the local farming community and reducing transportation costs.
Digitization of Ration Cards: The state replaced physical ration cards with digitized ones, ensuring that food grains reach eligible beneficiaries without duplication or fraud.
Incorporating such reforms into PMGKAY can ensure efficient delivery and reduce leakages.
References
- Department of Food and public distribution Government of India
https://dfpd.gov.in/Home/ContentManagement?Url=pmgka.html&ManuId=3&language=1 - My government scheme
https://www.myscheme.gov.in/schemes/pm-gkay - Press information bureau
https://pib.gov.in/PressReleseDetail.aspx?PRID=1882759®=3&lang=1
About the contributor: Jay Mudaliar is currently an intern in IMPRI and postgraduate student in Social work at Ganpat University. His interest area are politics, geopolitics, social work.
Acknowledgment: The author would like to thank Dr. Arjun Kumar, Aasthaba Jadeja who helped throughout this article and reviewed the same.
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