India to Extend Billion-Dollar Free Food Grains Program by Five Years: Modi
Published on: November 5, 2023.
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India Extends Billion-Dollar Free Food Grains Program by Five Years: Modi
In order to address rising cereal prices and provide relief to consumers, India announced plans to extend its free food grains program by five years. Prime Minister Narendra Modi confirmed this move at an election rally in Durg, Chhattisgarh, where state elections are scheduled for this month.
The free grains program, which currently provides food to over 800 million people, will require higher government spending and increased procurement of wheat and rice from farmers. This extension comes as the government prepares for a general election in early 2024.
India, being the world’s second-largest producer of wheat and rice, has restricted their exports to control domestic prices. However, this policy will have to be maintained for a longer period to sustain the free food grains program. Without export restrictions, local prices would exceed the government’s set floor prices, making it difficult to procure enough grains.
This year, India’s rice output is expected to decrease for the first time in eight years. Consequently, there is a possibility that export curbs on rice will be extended to stabilize food prices prior to the elections. Last year, the country banned wheat exports after a heat wave impacted production.
The free food grains program is estimated to cost the government approximately 2 trillion rupees ($24.06 billion) this year. Its extension demonstrates the government’s commitment to supporting the welfare of its citizens.
Source: [Reuters](https://dunyanews.tv)
