Economic Survey suggests revision of rates and coverage under NFSA

NEW DELHI: The prices of subsided foodgrains available through ration shops should be revised to lower the food subsidy bill, which has been mounting every year. The Economic Survey 2019-20 suggested that the rates of food grains under National Food Security Act needs to be revisited.

“The rates fixed under the NFSA initially for a period of three years have not been revised since 2013, resulting in burgeoning food subsidy,” the survey said.

Th National Food Security Act was implemented in July 2013. Since then the food subsidy bill has increased from Rs 1.13 lakh crore in 2014-15 to Rs 1.71 lakh crore in 2018-19.


Under the NFSA, the government supplies 5 kg of subsidised foodgrains to each person per month through more than 5 lakh ration shops, known as public distribution system (PDS). Rice is supplied at Rs 3/kg, wheat at Rs 2/kg and coarse grains at Rs 1/kg.

The Economic Survey 2019-20 also suggested to revisit the coverage of people benefiting from NFSA.

As per the data provided by PIB, NFSA currently provides coverage for about 81.34 crore people across the country.