Ineligible Beneficiaries Under PMGKAY
The Government of India is intensifying efforts to reverify and update the beneficiary list under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). This move aims to ensure that free ration benefits reach the truly deserving population while containing the rising food subsidy burden. States like Rajasthan and Odisha have made progress by removing millions of ineligible beneficiaries. The food ministry will review the progress and finalise paddy procurement targets in an upcoming meeting with state food secretaries.
Background
PMGKAY operates under the National Food Security Act (NFSA), 2013. It provides free foodgrains to approximately 800 million beneficiaries. These include priority households receiving 5 kg of rice or wheat per person monthly and Antyodaya Anna Yojana (AAY) households receiving 35 kg per family. The scheme was extended by five years in 2023, making it a major fiscal commitment.
Need for Reverification
Beneficiary lists were prepared over a decade ago. Many names are outdated due to deaths, income changes, or duplication. The food ministry has urged states to reverify eligibility to improve targeting. This includes removing ineligible beneficiaries and adding new deserving individuals. The process is intended to maintain or increase coverage without sudden reductions.
Data Matching
A comprehensive data convergence exercise matched ration card records with databases from the Central Board of Direct Taxes, Central Board of Indirect Taxes and Customs, Ministry of Corporate Affairs, Ministry of Road Transport and Highways, and PM Kisan Samman Nidhi. This revealed that about 10% of beneficiaries may not meet eligibility criteria. Some were found to be taxpayers, vehicle owners, company directors, or non-lifting their ration for months.
State-Level Actions and Progress
States like Rajasthan removed around 28 lakh ineligible beneficiaries through voluntary surrender drives. Odisha weeded out about seven lakh names due to death or higher income. Madhya Pradesh and others have also started similar exercises. The process includes field verification and e-KYC authentication using Aadhaar, completed for 83% of beneficiaries.
Financial Implications
The NFSA’s issue prices have not been revised to reflect rising economic costs, including procurement, storage, and distribution. This gap has increased the subsidy burden. The government plans to modernise grain storage and integrate supply chains with cooperative credit societies to reduce costs. Rationalising beneficiary lists will help focus resources on the needy and reduce wasteful expenditure.
Challenges and Controversies
Some states have expressed concerns over the re-verification process. Punjab’s Chief Minister alleged attempts to reduce free ration coverage. The Union Food Minister clarified that states are responsible for identifying eligible households as per NFSA guidelines. The Supreme Court has mandated mandatory e-KYC to improve transparency.
Future Directions
The government aims to maintain the scheme’s coverage while improving equity and integrity. Inclusion of farmer collectives and marginalised groups is being explored. Experts suggest that savings from subsidy reforms could fund agricultural research, irrigation, and nutrition-focused crop development. The ongoing reforms mark step in strengthening India’s public distribution system.
| Related | |
|---|---|
