National Food Security Act

The stock of foodgrains in the Central Pool as on 1st June, 2019 was 741.41 lakh tons consisting of 275.81 lakh tons of rice and 465.60 lakh tons of wheat.

Government of India enacted National Food Security Act (NFSA) in July, 2013 which gives legal entitlement to 67% of the population (75% in rural areas and 50% in urban areas) to receive highly subsidized foodgrains. Under the Act, foodgrain is allocated @ 5 kg per person per month for priority households category and @ 35 kg per family per month for AAY families at a highly subsidized prices of Rs. 1/-, Rs. 2/- and Rs. 3/- per kg for nutri-cereals, wheat and rice respectively. Coverage under the Act is based on the population figures of Census, 2011. The Act is now being implemented in all 36 States/UTs and covers about 81.35 crore persons. The annual allocation of foodgrain under National Food Security Act and Other Welfare Schemes is about 610 Lakh Metric Tons.

The coverage of the sugar subsidy scheme introduced with effect from June, 2013, after de-regulation of sugar sector, targeted  Below Poverty Line (BPL) population (inclusive of poorest of poor person in the country i.e. AAY families) and all the population of North Eastern States/ Special Category States/ Hilly States and Island Territories. Now, the NFSA is being universally implemented in the country. There is no identified category of BPL under the NFSA. However, the Antyodaya Anna Yojana (AAY) beneficiaries are clearly identified.  As such, the Government of India has reviewed the Sugar Subsidy Scheme and decided to continue it for AAY families with effect from June, 2017. The Central Government is reimbursing a fixed subsidy of Rs. 18.50 per kg @ 1 Kg per month per AAY families to participating States/UTs”.

In order to liquidate the excess stock of foodgrain in the Central Pool, Government of India avails the available options of disposal of the excess stock of foodgrain through Open Market Sale Scheme (OMSS) and Export on Government-to-Government basis, as export from public stockholding is not compliant to WTO norms.”

Stock of wheat and rice are sold to bulk consumer/traders/ State Government from the central Pool at pre-determined prices in the open market from time to time through e-tender to enhance the supply especially during the lean season and in the deficit regions and thereby to moderate the open market prices. 100 lakh metric tons of wheat and 50 lakh metric tons of rice has been set as target for sale under OMSS (D) during 2019-20.

This information was given in a written reply by the Minister of State for Consumer Affairs, Food & Public Distribution, Shri Danve Raosaheb Dadarao in the Lok Sabha today.