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Year-End- Review of Department of Food and Public Distribution– 2023

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Free food grains to 81.35 crore NFSA beneficiaries for a period of five years from 1st January, 2024

New Delhi:Following are the major highlights of the activities of the Department of Food & PublicDistribution during the year 2023:

Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY):

The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) was launched with the specific purpose of ameliorating the hardships faced by the poor and needy due to economic disruptions caused by the COVID-19 outbreak in the country. In view of COVID crisis, the allocation of free foodgrains, under PMGKAY was in addition to regular allocation done. A total quantity of approx. 1118 LMT foodgrains had been allocated under PMGKAY (Phase I-VII) for the period of 28 months with a total planned financial outlay was about Rs. 3.91 lakh crore.The Central Government, in order to remove the financial burden of the poor beneficiaries and to ensure nationwide uniformity and effective implementation of the Act, had decided to provide food grains free of cost to NFSA beneficiaries i.e. AAY households and PHH beneficiaries, initially for a period of one year beginning from 1st January 2023 under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). Prior to that, under NFSA, subsidized food grains were distributed at Rs 3 per kg for rice, Rs 2 per kg for wheat and at Rs 1 per kg for coarse grains to beneficiaries.Free food grains to 81.35 crore NFSA beneficiaries for a period of five years from 1st January, 2024.

Sale of Bharat Atta

To moderate the prices of wheat & atta and to make available atta to general consumers at affordable rate, 2.5 lakh MT of wheat @ Rs.21.50/kg was allocated for Semi-Government and cooperative organizations like Kendriya Bhandar, National Cooperative Consumers’ Federation of India Limited (NCCF) and National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED) under OMSS(D) for converting to atta and offer it for sale to the public under ‘Bharat Atta’ brand at an Maximum Retail Price (MRP) not exceeding ₹ 27.50/Kg. The quantity of wheat allocated under the scheme has been enhanced further to 4 LMT.

Progress of One Nation One Ration Card plan:

Starting with inter-State portability in just 4 States in August 2019, so far, the ONORC plan has been enabled in all 36 States/UTs (across the country) covering around 80 Crore NFSA beneficiaries, i.e., almost 100% NFSA population in the country. Chhattisgarh state and Assam state had joined ONORC platform in the month of February 2022 and June 2022 respectively.Since inception of ONORC plan in August 2019, more than 125 Crore portability transactions have been recorded under the ONORC plan in the country delivering more than 241 LMT foodgrains, which includes both inter-State and intra-State transactions.During year 2023, about 28 crore portability transactions were performed in 11 months of 2023 delivering more than 80 LMT foodgrains including inter-state and intra-state portability transactions of NFSA and PMGKAY. Presently, more than 2.5 crore portability transactions are being recorded every month under PMGKAY foodgrain distribution.

100% digitized ration cards/beneficiaries’ data under NFSA in all States/UTs. Details of almost 20.06 Crore ration Cards covering around 80 Crore beneficiaries are available on transparency portals of States/UTs.

More than 99.8% Aadhaar seeding of ration cards (at least one member).About 99.8% (5.41 Lakh of total 5.44 Lakh) Fair Price Shops (FPSs) in the country are automated using electronic Point of Sale (ePoS) devices for transparent and ensured distribution of subsidized foodgrains to beneficiaries.Under distribution of foodgrains, more than 97% of the transactions have been recorded biometrically/Aadhaar authenticated by States/UTs.

 FCI continuously assesses and monitors the storage capacity and based on the storage gap assessment, storage capacities are created/hired. The requirement of storage capacity in FCI depends upon the level of procurement, requirement of buffer norms and PDS operations for Rice and Wheat mainly. Storage gap is assessed in the procuring States based on the highest stock levels in the last three years and in the consuming States on the basis of 4 months (6 months in case of NE regions) requirement of National Food Security Act (NFSA) and Other Welfare Scheme (OWS) for creation / construction of new godowns. As on 01.12.2023, the Storage capacity of 363.69 LMT is available with Food Corporation of India and 397.60 LMT is available with State agencies for Central Pool stock of foodgrains. As a result, a total covered capacity 761.29 LMT is available for storage of Central Pool stock of foodgrains. (CAP capacities are no longer used & are being phased out).

The Indian sugar industry is an important agro-based industry that impacts rural livelihoods of about 5 crore sugarcane farmers & their families and around 5 lakh workers directly employed in the sugar factories. Employment is also generated in various activities relating to transport, trade servicing of machinery and supply of agriculture inputs. India is the largest producer as well as consumer of sugar in the world. Today, Indian sugar industry’s annual output is about ₹1,40,000 crore approximately.Sale of ethanol has resulted in better cash flows for sugar mills resulting in prompt payment to cane farmers. In last 10 years (2014-15 to 2022-23), sugar mills have earned revenue of more than ₹ 90,000 crores from sale of ethanol which has added to the bottom line of sugar mills.Till year 2014, ethanol distillation capacity of molasses-based distilleries was less than 200 crore litres. Supply of ethanol to OMCs was only 38 crore litres with blending levels of only 1.53 % in ethanol supply year (ESY) 2013-14. However, in past 9 years due to the policy changes made by the Government, the capacity of molasses-based distilleries has increased to 875 crore litres. Capacity of grain-based distilleries has increased to 505 crore litres.

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