Govt to extend sugar subsidy under AAY till March 2026

The cabinet has extended the scheme of giving sugar subsidy to families under the Antyodya Anna Yojna (AAY) distributed through the Public Distribution Scheme (PDS) for two more years, lasting till March 2026, said the Ministry of Consumer Affairs, Food, and Public Distribution in a statement on Thursday.

"(The) scheme facilitates access of sugar to the poorest of the poor and adds energy to their diet so that their health, "the statement said.

Under the Scheme, the central government gives a subsidy of Rs18.50 per kg per month of sugar to AAY families of participating states.


The approval is expected to extend benefits of more than Rs1850 crore during the period of the 15th Finance Commission (2020-21 to 2025-26), said the statement adding that the scheme is expected to benefit about 1.89 crores AAY families of the country.

The government already provides free ration under Pradhan Mantri Garib Kalyan Anna Yojna (PM-GKAY).

It also sells several staples such as ata, and pulses under the Bharat brand and vegetables such as onions and tomatoes in the retail market at affordable prices extending benefits to those beyond the Pradhan Mantri Garib Kalyan Yojana (PM-GKAY).

"So far, about 3 lakh tonnes of Bharat Dal (Chana dal) and about 2.4 lakh tonnes of Bharat Atta have already been sold, benefitting ordinary consumers, " it said.

The government will continue giving subsidy to participating states for the distribution of sugar to AAY families through PDS at the rate of One kg per family per month while states have the responsibility to procure and distribute sugar.