Context: The Centre’s subsidy bill on the ‘3 Fs’ — food, fertiliser and fuel — is slated to fall to a five-year-low of Rs 3,81,175 crore in 2024-25, as per the Interim Budget.
Key Points
oThis supplementary rice or wheat, beyond the regular 5 kg/person/month PDS quota, was offered from April 2020 to December 2022.
Food Subsidy
oSubsidy to FCI: The government supports FCI with subsidies for procuring food grains from farmers at notified prices.
oSubsidy to States: Central government extends food subsidies to states under the decentralised procurement scheme, allowing states to handle procurement, distribution, and storage on behalf of FCI.
oSugar Subsidy: As part of the Antyodaya Anna Yojana, poor families receive a sugar subsidy, providing one kg of sugar per month at a subsidized price to address nutritional needs.
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