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The total cost of distributing foodgrains and pulses under the PM Garib Kalyan Yojana (PMGKY) would be Rs 1.49 lakh crore approximately, an official statement said on Wednesday.
In April, the government announced that it would give 5 kg of foodgrains (rice or wheat) per person, free of cost per month in April, May and June to 80 crore people, in addition to 1 kg of pulses per family per month. Prime Minister Narendra Modi on Tuesday extended these benefits for five more months, till the end of November.
The Department of Food and Public Distribution, which has worked out the cost, said the entire scheme would entail an estimated cost of Rs 1,48,938 crore. The total requirement of foodgrains for the PMGKY is estimated at 32 million tonnes and this would require an estimated subsidy of Rs 1,22,829 crore, considering the economic cost of rice and wheat is Rs 37,267.60 per tonne and Rs 26,838.40 per tonne, respectively.
Similarly, the estimated cost of giving 1 kg of pulses per family for eight months is expected to cost around Rs 11,800 crore. In addition, the estimated cost for distribution of foodgrains to migrant labours for a period of two months is Rs 3,109.52 crore. The foregone cost of the Central Issue Price for foodgrains, which comes to approximately Rs 1,400 crore per month, entails an expenditure of approximately Rs 11,200 crore. The rest would be spent on bearing the cost of inter-State and intra-State transport, as well as paying margins to fair price shop dealers, it said.
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