New Delhi: The Union Cabinet on Wednesday approved the allocation of foodgrains from Central Pool to approximately 8 crore migrants or stranded migrants with an aim to ease the hardships faced by them due to economic disruption caused by COVID-19.
Finance Minister Nirmala Sitharaman announcing the second tranche of the Rs 20 lakh crore Atmanirbhar Bharat Package had said that 8 crore migrant workers will get 5 kgs of grains and 1 kg of pulses free for two months
It would entail an estimated food subsidy of about Rs.2,982.27 crore, an official release said.
Further the expenditure towards intra-state transportation and handling charges and dealer’s margin / additional dealer margin will account for about 127.25 crore which will borne fully by Central Government. Accordingly, the total subsidy from the Government of India is estimated at about of Rs.3,109.52 crore, it added.
The FM had also announced that to benefit of migrant workers, the government plans to allow inter-state portability of ration cards under public distribution system (PDS) so as to allow them to use their cards anywhere to get benefit.
Prime Minister Narendra Modi had on May 5 announced a cumulative package of Rs 20 lakh crore (nearly 10 per cent of GDP) to provide relief to various segments of the economy. This included Rs 1.7 lakh crore package comprising of free foodgrains and cash to poor for three months announced in March, and Rs 5.6 lakh crore stimulus provided through various monetary policy measures by the Reserve Bank of India (RBI).
India has been under nationwide lockdown since March 25 to curb the spread of the COVID-19 pandemic.