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Daily News Analysis

Census data may decide food subsidy  

13th March, 2021 Economy

Context: Once the new census data is available, the Centre may consider revising the number of people who get subsidised food grains under the National Food Security Act.

 

Details:

  • The NFSA provides for five kg of foodgrains per month to be provided to two-thirds of the country at the subsidised rate of Rs. 2 per kg of wheat and Rs. 3 per kg of rice through the public distribution system (PDS).
  • The current NFSA coverage of 81 crore people was determined on the basis of the 2011 census, and has not been revised since the law was passed in 2013.
  • The NFSA covered 67% of the country’s population, including 75% of the rural population and 50% of the urban population.

 

NITI Aayog’s Discussion Paper: Government think tank NITI Aayog has recently circulated a discussion paper proposing a reduction in the NFSA coverage, to 60% of the rural population and 40% of the urban population, in a bid to curb the food subsidy budget.

 

https://www.thehindu.com/todays-paper/tp-national/census-data-may-decide-food-subsidy/article34057233.ece