Food subsidy of Rs 1.68 lk cr and Rs 57,686 cr released to FCI, state DCP in 2023

The government has released a subsidy amount of Rs 1,67,875 crore to the Food Corporation of India (FCI) and Rs 57,686 crore to state DCP as food subsidy during the period between January 1, 2023 to December 15, 2023, it said in response to a question in Lok Sabha on Wednesday.

This amount was given as food subsidy under the National Food Security Act (NFSA) and the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). Food grains at subsidized prices are made available by the FCI to states under the PMGKAY for which subsidy is released to the FCI.

Under the scheme, launched in April 2020 in the wake of covid-19 pandemic, 5kg of foodgrain per person per month is provided free of cost to all beneficiaries covered under the National Food Security Act (NFSA).


In case of states participating in the decentralized procurement, state governments take the responsibility of procurement of foodgrain and it's distribution to eligible households. In such states subsidy is released to the state.

The central government bears the expenditure incurred by the state on procurement operation as per approved costing.

PMGKAY is among the world's biggest social welfare schemes aimed at ensuring food and nutrition security for 81.35 crore people.

The government has decided to extend the scheme for five more years till December 2028 that would cost the exchequer Rs 11.8 lakh crore.