India replaces COVID-era free food programme with cheaper scheme

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India replaces COVID-era free food programme with cheaper scheme
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India will end its COVID-19 era free food programme on Dec. 31 and replace it with a cheaper programme that will save the government nearly $20 billion in the next 12 months.

Late on Friday, India's Food and Trade Minister Piyush Goyal said the government will stop the free food programme after 28 months as the economic situation has improved since COVID-19 cases and restrictions have eased.

The programme provided poor families with 5 kg of foodgrains each month in addition to other highly subsidised foodgrains. It started in April 2020 and has cost the government nearly $47 billion. Now the government will make the highly subsidised foodgrain free for the next 12 months, Goyal said. This gives 35 kg of food grain every month to families at the cost of 1 Indian rupees to 3 Indian rupees . Millions of poor households benefit while some priority groups get 5 kilogram foodgrains per person for the same price.

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