The decision was taken by an empowered group of ministers (EGoM) headed by Finance Minister Pranab Mukherjee.
The additional allocation for the 65.20 million families living below poverty line (BPL) is over and above 35 kg per family per month, sold at the ration shops at highly subsidised rates, sources said.
Wheat is sold to these families at Rs 4.15 per kg and rice at Rs 5.65 per kg. Food inflation was 8.76 per cent for the week-ended April 16.
The EGoM took no decision on the demand for allowing wheat exports, which have been banned in the wake of high food inflation.
In another decision, the ministers' panel approved export of one lakh tonnes each of wheat flour and non-basmati rice to Maldives on diplomatic ground. India has been making exception to the export curbs on wheat and non-basmati rice for some neighbouring and small countries.
The EGoM includes Agriculture Minister Sharad Pawar, Commerce and Industry Minister Anand Sharma and Food Minister K V Thomas.