The government plans to expand its central bank digital currency (CBDC)-based food subsidy programme to Chandigarh, Dadra and Nagar Haveli, and Daman and Diu by June, following its implementation on a pilot basis in Gujarat and Puducherry, official sources said.
Food subsidy is provided by the Centre in the budget of the Department of food and public distribution to meet the difference between the economic cost of foodgrains and their sales realisation at central issue prices.
Governments should move away from universal subsidies towards tightly targeted transfers, backed by stricter eligibility norms, sunset clauses and periodic audits to curb leakages and improve spending efficiency, a joint study by Asian Development Bank and PwC has recommended.
Revenue collection next financial year may be affected, and, along with this, subsidies on food and fertilisers can go up if the war in West Asia drags for long, according to experts.
Nilekani proposes centralised PDS network, model PDS software for transparency.
Food subsidy bill rises 20% in April-January
Finance Minister Nirmala Sitharaman has brought down the budgetary allocation for the fertiliser subsidy for FY21 to Rs 71,309 crore, from the RE of Rs 79,998 crore for FY20, while increasing food subsidy to FCI through "ways and means advance" to Rs 50,000 crore for FY21, from Rs 36,000 crore in RE for FY20, and under the National Food Security Act (NFSA) to Rs 77,982 crore, from Rs 75,000 crore.
The food subsidy is likely to touch a record Rs 50,000 crore (Rs 500 billion) in the current fiscal, nearly Rs 18,454 crore (Rs 184.54 billion) higher than Rs 31,546 crore (Rs 315.46 billion) in 2007-08.
In other welfare schemes, such as those for cooking gas, pension and scholarships, which are linked to DBT, cash is transferred directly into the bank accounts of beneficiaries.
Various estimates of the extra cost to the government for an improved food security Bill are doing the rounds, but many agree the Union government's proposed food subsidy bill would double.
The government estimates the food subsidy bill to be Rs 490-500 billion this year from Rs 190 billion earlier, Food and Agriculture Minister Sharad Pawar told Rajya Sabha during Question Hour. The Centre issues rice at Rs 5.65 a kg and wheat at Rs 4.15 per kg to the states for supply through ration shops to families covered under the BPL category. Pawar, however, was non-committal on increasing the coverage of subsidised foodgrains to include more people.
Bank of Baroda economists project India's GDP to grow 6.5-6.8 per cent in FY27 but warn that the fiscal deficit could overshoot the budgeted 4.3 per cent target, potentially reaching 4.7-4.8 per cent of GDP due to subsidy overruns, excise duty cuts, and oil marketing company losses.
India is already a heavyweight in global farm trade in pockets such as rice exports, but experts are urging a pivot from a subsidy- and procurement-driven mindset to a productivity and nutrition strategy that still shields farmers from volatility.
Biju Janata Dal leader and Lok Sabha MP from Kendrapara in Odisha Baijayant Panda on Thursday demanded removal of food subsidy extended to the Parliamentarians in Parliament canteen to raise public trust and confidence in lawmakers.
The conflict may disrupt Budget 2026-2027 projections, squeezing revenues and raising subsidies, prompting fiscal adjustments and potential reforms, echoing lessons from the Covid-era shock, points out A K Bhattacharya.
'If 5% of the total revenue was spent on LPG (pre-war), it is now expected to double. The overall food cost in restaurants is expected to rise by 4-6%.'
But when it comes to e2W, China is the dominant player and had grabbed over 76 per cent share of total e2W imports in 2025 with brands like Yadea, NIU and Sunra dominating the market.
Stating that the food subsidy bill is becoming "unmanageably large", the Economic Survey 2021 on Friday suggested the government to increase the selling price of foodgrains provided through ration shops to over 80 crore beneficiaries. Foodgrains via ration shops are supplied at highly subsidised rates of Rs 3 per kg for rice, Rs 2 per kg for wheat and Rs 1 per kg for coarse grains through Public Distribution System (PDS) as per the National Food Security Act (NFSA). "While it is difficult to reduce the economic cost of food management in view of rising commitment towards food security, there is a need to consider the revision of central issue price (CIP) to reduce the bulging food subsidy bill," the survey said.
India's food subsidy bill is estimated to have crossed Rs 720 billion (Rs 72,000 crore) in the 2009-10 fiscal, a 65 per cent jump from the previous year, mainly due to increased procurement and rising cost of foodgrains.
This is the highest in the past five years and almost 24 per cent more than last year.
Finance Minister Nirmala Sitharaman launched a strong attack on Rahul Gandhi and the Congress party, accusing them of compromising India's interests on the world stage and selling out farmers and the poor during their time in power.
Infographics break down the key numbers and decisions, making it quick and easy to understand what the Budget means for the economy.
According to officials in the know, the government might cut the fertiliser subsidy in the next financial year. The international spot and contract prices of di-ammonium phosphate and muriate of potash (MOP) have come down in recent months.
The government's food subsidy bill may touch Rs 60,000 crore (Rs 600 billion) this fiscal if it pays a bonus to paddy farmers over the current purchase price of Rs 950-980 a quintal to increase rice procurement.
Former UN Secretary General Kofi Annan has warned India against too many populist subsidies
Food Security Act will be fully provided for and subsidy to be 2 per cent of GDP for next two years.
India has initiated a probe into imports of subsidised paperboard from China and Indonesia following complaints from domestic manufacturers. The investigation will assess the impact of these imports on the Indian paper industry and determine if anti-subsidy duties are warranted.
India has initiated a probe into imports of subsidised paperboard from China and Indonesia following complaints from domestic manufacturers. The investigation will assess the impact of these imports on the Indian paper industry and determine if anti-subsidy duties are warranted.
S&P Global Ratings warns that a sustained rise in crude oil prices to $130 per barrel could significantly slow India's economic growth, weaken fiscal metrics, and strain corporate and banking sector performance, potentially reducing growth by up to 80 basis points.
Every week, hundreds of people line up to fill a plastic container with food in an unlikely place: the humble home where Argentine soccer legend Diego Armando Maradona was born.
The Indian government has demanded that the year be changed to a more recent period, taking into consideration the rise in food prices and rate of inflation.
Indian eateries are adapting to the LPG crisis by cutting menus, increasing prices, and switching to alternative fuels like coal, as LPG supplies are disrupted due to global events. State authorities are cracking down on hoarding and black marketing of LPG cylinders.
Punjab Governor Gulab Chand Kataria emphasised the importance of Aadhaar in promoting good governance, transparency, and ease of living, highlighting its role in ensuring welfare benefits reach the intended recipients and strengthening the rural economy through Direct Benefit Transfer.
India has completely protected the interests of its agriculture and dairy sector in the India-US trade agreement.
Congress leader Rahul Gandhi has accused Prime Minister Narendra Modi of being 'anti-farmer' and 'selling' the country through the India-US interim trade deal, vowing to stand strongly with farmers.
West Asia conflict triggers sharp sell-off in Indian markets, with realty, banking and auto stocks leading losses amid energy shock fears.
AIADMK general secretary Edappadi K Palaniswami has announced a series of welfare measures, including free refrigerators for rice ration cardholders, if the party wins the 2026 Assembly election in Tamil Nadu.
The decision was taken after a suggestion from Lok Sabha Speaker Om Birla.
Critics have slammed a bloated subsidy that has been proposed for the food security bill, but officials in the government strongly believe that the resultant additional burden will not be above Rs 27,000 crore to meet the commitments under the proposed legislation.
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