Free Grain Scheme
Govt approves supply of better rice to beneficiaries of free grain scheme
This story was originally published at 21:49 IST on 2 July 2026
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MUMBAI – The Cabinet Committee on Economic Affairs Thursday approved a proposal to improve the quality of rice supplied under the Pradhan Mantri Garib Kalyan Anna Yojana and other welfare schemes. Over 800 million beneficiaries, who receive free food grain under the scheme, will receive better quality rice, as per a government release.
Under the measure, for the first time in nearly three decades, the government has revised the quality specifications for rice supplied through the public distribution system to ensure that the beneficiaries of the scheme receive rice with substantially lower broken grain content while maintaining their existing entitlement, it said in the release.
According to the release, raw rice supplied under the scheme will contain up to 10% broken grain. The existing specification allowed up to 25% broken grain. Similarly, parboiled rice will contain up to 5% broken grain, against the existing specification of up to 16%.
Procurement of improved-quality rice will begin immediately and will be rolled out across all procuring states by the kharif marketing season 2027–28 (Oct-Sept) in a phased manner, according to the release. "Distribution of improved-quality rice under PMGKAY and Other Welfare Schemes will also be undertaken in a phased manner, ensuring a smooth transition to the revised specifications across all states," the government said in the release.
"The reform is expected to lead to rationalisation of transportation, storage and handling costs, as broken rice will be auctioned directly from millers' premises. Jute bag requirements will also reduce, with broken rice being stored in HDPE (high-density polyethylene) bags," it said.
This is expected to result in an annual cost rationalisation of INR 21.61 billion through reduced logistics, storage, and packaging costs. In addition, the sale of broken rice will generate additional revenue, further helping to reduce the food subsidy burden, per the release. End
Reported by Abhijit Doshi
Edited by Rajeev Pai
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