Govt To Hike Wheat Allocation Under PMGKAY Starting From October

The government on Wednesday announced an increase in wheat allocation to beneficiaries under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) from October onwards, in a bid to stabilise prices. Food Secretary Sanjeev Chopra, while highlighting achievements in 100 days of Modi 3.0 government, said a committee of ministers has approved an additional 3.5 million tonne of wheat under PMGKAY.

This increased allocation will continue until March 2025, potentially making efforts to restore the wheat-rice ratio under the scheme, he said at a press conference. Asked if this increased quantity restores the wheat-rice ratio, the Secretary said, "It will still be lower by 1-2 million tonne from the normal quantity." He also stated that the allocation could be reviewed based on future developments.

In May 2022, the government reduced wheat allocation to 7.1 million tonne from 18.2 million tonne and increased the rice allocation under PMGKAY because of tight supplies due to lower domestic production. Chopra highlighted the current "ample wheat" availability, citing last year's bumper production of 112.9 million tonne. "Even by conservative and industry estimates, it was at least 40-50 lakh tonne higher than the previous year," he noted.

The government's procurement stands at 26.6 million tonne against the actual production of 112.9 million tonne last year. Addressing market concerns, Chopra said there are no immediate plans to sell wheat under the Open Market Sale Scheme (OMSS), given the stability in wheat and wheat product prices. However, he didn't rule out future OMSS sales. PMGKAY, which covers 80 crore poor beneficiaries, provides 5 kg of free foodgrain per person monthly.

This enhanced allocation aims to address issues faced by beneficiaries following the previous reduction in wheat supply.