At present, sugar is distributed at a subsided rate of Rs 13.5 per kg to 2.5 crore families under the Antyodaya Anna Yojana (AAY).
The proposal is to extend one kg sugar supplies to additional 16.29 crore beneficiary families, would cost Rs 4,727 crore to the exchequer, sources said.
The ministry is thinking of supplying 1 or 2 kg of additional foodgrains but a final call is yet to be taken, sources said.
Under the National Food Security Act (NFSA), the government is supplying 5 kg of foodgrains each per month to over 80 crore people at a highly subsidised price. Wheat is being supplied ar Rs 2 per kg, while rice at Rs 3 per kg.
The distribution of additional foodgrains through the PDS is being considered as state-run Food Corporation of India (FCI) is saddled with wheat and rice stock. With some foodgrains stock kept in open space, the FCI is under pressure to clear stock before monsoon season starts.
Southwest monsoon is expected to hit Kerala on June 5.
Already, the FCI has started offloading wheat stock to bulk consumers but traders are not keen to buy at such high rate at a time when the grain is easily available in the open market at a lower rate.
The government's buffer stock is overflowing because of bumper production as well as procurement of wheat and rice in the last few years.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.