Trade and markets


Commodity Group
Policy Category
Consumption and marketing
Policy Instrument
Food subsidies
Signed the National Food Security Bill into law, following receipt of parliamentary approval in August. The law entitles the general population to a ration of 5 kg of foodgrains per person per month, but families covered by the Antyodaya Anna Yojna (AAY) scheme will continue to receive a monthly allowance of 35 kg of foodgrains per household. For the first three years of implementation of the scheme, the supplies will be distributed through the Targeted Public Distribution System at subsidized prices of Rupees 3 (USD 0.05), 2 (USD 0.03) and 1 (USD 0.02) per kg of rice, wheat and coarse grains, respectively, after which prices are to be determined based on the prevailing minimum support prices for the crops. Pregnant women, lactating mothers and children between six months and fourteen years of age will be additionally entitled to meals free of charge. A food security allowance is to be provided to beneficiaries when foodgrain supplies cannot be provided. The scheme is expected to cover up to 75 percent of the rural population and 50 percent of urban dwellers. The percentage coverage of rural and urban areas in each state will be determined by the central government, while state governments have been tasked with identifying eligible households and given 1 year to do so. The state-wise allocation of foodgrains was stipulated for a total of 54.926 million tonnes, but states\' existing grain entitlements were granted legal protection, subject to a ceiling equivalent to their average annual offtake of the past three years. Among other provisions, the law stipulates that financial assistance will be provided to states to cover intra-state movements and handling costs, while the public distribution system is to be reformed and an internal grievance redressal mechanism established.