Modi government may extend free food program for three more months

According to experts, India can extend its free food program for another three months. This program covers most of the country's population and its annual cost is more than $18 billion (about 1.5 trillion rupees). While not revealing the identity, experts in the matter have said that the government may continue to provide free rice or wheat to around 80 crore people till December. The Food Ministry has demanded an extension of the programme. As per the earlier arrangement, this food program was to end by the end of September. This has been said in a Bloomberg report.

Bloomberg had earlier reported that the Food Ministry has expanded the food program despite reservations from the country's finance ministry. People said the finance ministry, which was not in favor of expanding the programme, has suggested reducing the quantum of food grains given due to fiscal pressure and short supply globally. He said that a final decision in this regard is expected soon.

This food program started from April 2020 to help the poor during a strict Covid-19 lockdown. In this, there is a system of giving 5 kg of food grains per person every month. Since then the government is bearing its financial burden. With this its total cost has increased to about 44 billion dollars. Spokespersons of the food and finance ministries declined to comment on the matter.

The proposal to expand the free food program may come ahead of India's festive season beginning in October, which is an important season for economic activity. Elections are due in Himachal Pradesh, including Prime Minister Narendra Modi's home state Gujarat, later this year. The decision of the government can come in this situation to pursue the program.