India Extends Billion-Dollar Free Food Grains Program by 5 Years: Modi’s Initiative Continues
Published on: November 5, 2023.
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India to Extend Billion-Dollar Free Food Grains Program by Five Years: Modi
In order to protect consumers from rising cereal prices and ahead of the upcoming general election, India plans to extend its free food grains program for an additional five years, according to Prime Minister Narendra Modi. This program provides free grains to over 800 million people and has an estimated cost of 2 trillion rupees ($24.06 billion) this year.
The extension of the program will not only offer relief to consumers but also require the government to increase spending and procure more wheat and rice from farmers. This initiative aims to ensure that the welfare program can be sustained and continue providing essential food grains to those in need.
Modi made the announcement during an election rally in Durg, a city located in the central state of Chhattisgarh. The grains program was originally set to expire at the end of this year, but the government’s decision to extend it reflects their commitment to supporting vulnerable populations and addressing the issue of rising cereal prices.
India, known as the world’s second-largest producer of wheat and rice, has implemented restrictions on the exports of these cereals in an effort to control domestic prices. The continuation of these export restrictions is necessary to ensure that the government can successfully procure enough grains from farmers to fulfill the demands of the welfare program.
According to a Mumbai-based dealer with a global trade house, removing export restrictions would cause local prices to rise above the government’s set floor prices, making it difficult for the government to procure an adequate supply of grains.
During this year, India is expected to experience a decrease in rice output for the first time in eight years. This has led to speculation that New Delhi may further restrict exports of rice varieties to manage and control food prices ahead of the elections. In fact, global rice prices have already risen to a 15-year high after India implemented curbs on the exports of non-basmati rice varieties in July.
Last year, India had also banned wheat exports due to a decline in wheat output caused by extreme weather conditions.
Overall, the decision to extend the free food grains program demonstrates the Indian government’s commitment to addressing the issue of rising cereal prices and ensuring that essential food grains reach the most vulnerable populations. By extending the program, the government aims to alleviate the burden on consumers and prioritize their well-being during this critical time.
Source: [Dunya News](https://dunyanews.tv)
