Disturbing the maths: PMGKAY extension may be a costly affair in long run

The Commission for Agriculture Costs and Prices (CACP) has long advocated for a cap on the procurement of wheat and rice on a per-hectare basis

In the midst of high-decibel campaigning ahead of crucial state elections, Prime Minister Narendra Modi has made a surprise announcement: The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), a free foodgrain distribution scheme, will be extended for the next five years. While this move may be fiscally manageable in the current financial year, it could strain government finances in the future as the economic cost of foodgrain is expected to rise due to an increase in the minimum support price (MSP) and other incidental costs.

This new version of PMGKAY initially had a tenure of one year and was scheduled