Smart foodgrain management helps Centre keep subsidy bill under control

The government has been offloading some foodgrains in the open market at lower rates instead of giving it away for free through the PDS, besides implementing operational efficiencies

For the second year in a row, the Union Budget that was presented in Parliament has pegged the food subsidy at about Rs 2 trillion. 

The Budget Estimate (BE) for food subsidy in FY25 was Rs 2.05 trillion, while the Revised Estimate (RE) for the same year was about Rs 1.97 trillion. The BE for FY26 has been estimated at Rs 2.03 trillion, a shade lower than the BE for FY25. 

In fact, ever since the Centre discontinued the extra food grains allotment under the Pradhan Mantri Gareeb Kalyan Ann Yojana (PMGKAY) and merged it with the National