Apart from fiscal costs, PMGKAY may erode food stocks and push up prices
The government will give free wheat and rice to India’s poorest for another three months. But is the extension to the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) all about politics? Or is the Modi government only supporting the needy during the festive season, as stated? Indeed, by extending the PMGKAY, the government may be giving the poor some hope and festive cheer, but it may mean rising food prices for the middle class.