Plan to Drop Ineligible Beneficiaries from Free Ration Scheme
01-Sep-2025 11:00 AM
New Delhi. With the aim of reducing the huge food subsidy, the Union Food Ministry has started the process of removing the names of those beneficiaries from the list of free ration distribution scheme under the Pradhan Mantri Garib Kalyan Anna Yojana who are not entitled to get this benefit in all cases. This issue is likely to get the most attention in an important meeting of secretaries with the provincial level.
Last month, the Union Food Ministry had sent a letter to all the states and union territories emphasizing the need to re-verify the names of more than 80 crore beneficiaries who are taking advantage of the free ration distribution scheme.
These beneficiaries are currently being provided 5 kg of food grains (rice or wheat) per month for free. Along with this, the government intends to include such persons in the list of this scheme who are truly entitled to it.
It is noteworthy that in the year 2023, the Prime Minister had announced to extend the period of the free ration distribution scheme for the next five years.
Earlier it was said that the issue price of food grains for the beneficiaries will be reviewed in accordance with its cost, which will include the cost of purchase at MSP and the cost of storage, transportation and distribution, but no review has been done so far.
The difference between the total cost (economic value) and issue price of food grains kept increasing, due to which the level of food subsidy is expected to jump and cross the limit of Rs 2 lakh crore.
It is understood that the government can save up to Rs 1 lakh crore in food subsidy if the names of ineligible beneficiaries are removed from the list of this scheme. Meanwhile,
the government has planned a project of Rs 1.25 lakh crore to build modern grain storage facilities in the cooperative sector and to maintain the uninterrupted mobility of Primary Agricultural Credit Societies (PACS), for which the amount saved from the reduction in food subsidy can be supported.
Many beneficiaries are not taking food grains under the free ration distribution scheme and the number of rich beneficiaries is also very high who do not need ration food grains.