Food Subsidy Likely to Exceed Budget in FY 2024-25

30-Dec-2024 09:57 AM

Food Subsidy Likely to Exceed Budget in FY 2024-25
The current fiscal year allocated Rs. 13,000 crore for food subsidy, which may rise to Rs. 20,000 crore.
The increase is attributed to higher stock levels and reduced rice procurement under OMSS.
The reserve sale price under the current OMSS scheme is Rs. 2,800/quintal, lower than last year.
Only 7 lakh tons of rice were lifted under the ongoing OMSS sales.
High stock levels have led to increased storage and maintenance costs for wheat and rice.
Last year's cost per kilogram was Rs. 39.31 (rice) and Rs. 27.09 (wheat), rising to Rs. 39.75 (rice) and Rs. 27.74 (wheat) this year.
As of December 1, the central pool stock included 206 lakh tons of wheat, 280.28 lakh tons of rice, and 351.29 lakh tons of unmilled paddy.