States are allocated food grains at subsidized rates under National Food Security Act, 2013 (NFSA) and other Welfare Schemes. Difference between Economic Cost and Central Issue Price (CIP) at which food grains are issued to States are reimbursed to Food Corporation of India (FCI) as subsidy. In case of States which have adopted Decentralized Procurement Scheme (DCP), food subsidy is released to States by Government of India for quantity of food grains procured and distributed by them under NFSA and other Welfare Schemes. In addition, the Central Government also procures food grains for meeting the requirements of buffer stock. Hence, part of the food subsidy also goes towards meeting the carrying cost of buffer stock.
Total food subsidy released in India was Rs. 1,13,171.16 crore in 2014-15, out of which 81.3% was released to FCI and 18.7% was released to States. There was total release of Rs. 1,39,981.69 crore as food subsidy in India during 2017-18, out of which 72.9% and 27.1% was released to FCI and States respectively.
Food subsidy released to FCI was Rs. 91,995.35 crore in 2014-15. It has increased by 21.75% to Rs. 1,12,000 crore during 2015-16 above 2014-15. Annual decline of -131 basis points has been observed in release of food subsidy to FCI to Rs. 1,01,981.69 crore during 2017-18 against Rs. 1,03,334.61 crore during 2016-17.
We have seen annual growth of 8.23% in release of food subsidy to States from Rs. 21,175.81 crore during 2014-15 to Rs. 22,919 crore during 2015-16. Food subsidy released to States was Rs. 38,000 crore during 2017-18, up by 39% versus Rs. 27,338.35 crore during 2016-17.
Note: Source: RAJYA SABHA SESSION – 248 UNSTARRED QUESTION No 679; Food Subsidy Released FCI and Total for the year 2016-17 includes NSSF loan of Rs. 25,000 crore to FCI; Food Subsidy Released FCI and Total for the year 2017-18 includes NSSF loan of Rs. 40,000 crore to FCI; Data Values are Rs. in crore.
Resource Title: Year-wise details of Food Subsidy Released from 2014-15 to 2017-18 (From : Ministry of Consumer Affairs, Food & Public Distribution)