Executive Summary:
This document addresses Lok Sabha Unstarred Question No. 1709 regarding food subsidy arrears for West Bengal and Uttar Pradesh under schemes like NFSA, PMGKAY, ICDS, and PDS. It details the status of fund releases to these states, reasons for delays, and steps taken to ensure timely disbursement, including the implementation of the SCAN portal on 05.12.2024 for processing subsidy claims. The response was provided on July 30, 2025.
Key Points / Main Content:
Food Subsidy Release Process:
* Payments for Central Pool procurement are made by the Food Corporation of India (FCI) based on claims from State Governments, including Minimum Support Price (MSP) and incidentals.
* Provisional food subsidy is released to Decentralized Procurement (DCP) states, like West Bengal, based on quarterly claims, considering stock balances, procurement, allocation, distribution, reconciliation, utilization certificates, guidelines, and economic cost.
Status of Fund Releases:
* West Bengal: Admissible funds have been continuously released despite pending compliance with certain guidelines.
* Amounts released during financial years:
* 2021-22: Rs. 6,162.66 Crore
* 2022-23: Rs. 7,115.17 Crore
* 2023-24: Rs. 226.32 Crore
* 2024-25: Rs. 9,598.55 Crore
* 2025-26 (till 28.07.2025): Rs. 78.04 Crore
* Uttar Pradesh: As a non-DCP state, Uttar Pradesh does not receive subsidy releases from DFPD for procurement.
* For distribution of coarse grains, Rs. 119.92 Crore was released during FY 2025-26 (till 28.07.2025).
Measures for Timely Disbursement:
* The Department of Food and Public Distribution (DFPD) launched the Subsidy Claim Application for NFSA (SCAN) online portal on 05.12.2024.
* All claims are now processed and settled through the SCAN portal.
Impact Analysis:
State Governments (West Bengal and Uttar Pradesh):
* Impact: West Bengal receives continuous admissible fund releases for food subsidy despite pending compliance to certain guidelines. Uttar Pradesh receives funds for coarse grain distribution despite being a non-DCP state.
* Action Required: To ensure timely disbursal of funds, both states should ensure compliance with the government guidelines and submit claims through the SCAN portal.
Food Corporation of India (FCI):
* Impact: FCI is responsible for making payments to states based on their claims for Central Pool procurement.
* Action Required: Continue processing and disbursing payments based on state government claims, following established procedures and guidelines.
Department of Food and Public Distribution (DFPD):
* Impact: DFPD is responsible for processing subsidy claims and ensuring timely disbursement of funds to states.
* Action Required: Continue monitoring and managing the SCAN portal and processing claims efficiently to ensure timely disbursement of funds to states.
Key Entities Referenced
National Food Security Act: A scheme under which food subsidy arrears are to be released.
Pradhan Mantri Garib Kalyan Yojana: A scheme under which food subsidy arrears are to be released.
Integrated Child Development Services: A scheme under which food subsidy arrears are to be released.
Public Distribution System: A scheme under which food subsidy arrears are to be released.
West Bengal: A state to which food subsidy is released, mentioned in the context of outstanding amounts.
Uttar Pradesh: A state to which food subsidy is released, mentioned in the context of outstanding amounts.
Food Corporation of India: An organisation that makes payments to States for Central Pool procurement of food grains.
Subsidy Claim Application for NFSA SCAN: An online portal launched by DFPD for timely release of food subsidy claims.
GOVERNMENT OF INDIA
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION
LOK SABHA
UNSTARRED QUESTION NO. 1709
TO BE ANSWERED ON 30TH JULY, 2025
FOOD SUBSIDY ARREARS FOR STATES
1709. SHRI SAUMITRA KHAN:
SHRI SANATAN PANDEY:
Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
be pleased to state:
(a) whether there is any outstanding amount of food subsidy against West Bengal and Uttar
Pradesh to be released under schemes like National Food Security Act (NFS A), Pradhan
Mantri Garib Kalyan Yojana (PMGKAY), Integrated Child Development Services (ICDS) and
Public Distribution System (PDS);
(b) if so, the details of the total outstanding funds alongwith the reasons for delay in the
release of said funds;
(C) the expected time frame for the release of the said funds;
(d) whether the welfare schemes and food distribution system have been affected in the said
States due to the said delay; and
(e) the steps taken by the Governments to ensure timely disbursement of food subsidy to
West Bengal, Uttar Pradesh and the other States?
ANSWER
MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS,
FOOD & PUBLIC DISTRIBUTION
(SHRIMATI NINIUBEN JAYANTIBHAI BAMBHANIYA)
(a) to (d): Payment of admissible amount to States for Central Pool procurement of food
grains is made by Food Corporation of India(FCI) on the basis of the claims made by State
Governments and their agencies as per the Cost Sheet, which includes Minimum Support Price
(MSP) of the food grain and other incidentals. Further, provisional food subsidy is released to
States that have opted for Decentralized Procurement (DCP) mode, including West Bengal, on
the basis of their quarterly food subsidy claims, which is an ongoing and continuous process.
These claims are processed keeping in view the opening and closing balance of stocks,
procurement , allocation and distribution of food grains under various Central Schemes, Food
Corporation of India’s reconciliation, utilization Certificates received, implementation of
guidelines issued by Government of India, economic cost of food grains etc. Despite pendencyof compliance to certain guidelines by the State, Department of Food and Public Distribution
(DFPD), Government of India has been continuously releasing the admissible amount of funds
to the Government of West Bengal against their claims. Rs.6,162.66 Crore, Rs.7,115.17
Crore, Rs.226.32 Crore and Rs.9598.55 Crore and Rs.78.04 Crore have been released to the
State Government during the financial years 2021-22, 2022-23, 2023-24, 2024-25 and 2025-26
(till 28.07.2025) respectively.
Further, as Uttar Pradesh has adopted non DCP mode of procurement, no subsidy is
being released by DFPD. However, for distribution of Coarse grains by State Government of
Uttar Pardesh, Rs. 119.92 Crore was released during FY 2025-26 (till 28.07.2025).
(e) For timely release of food subsidy claims and the issuance of provisional cost sheets,
the DFPD has launched an online portal namely the Subsidy Claim Application for NFS A
(SCAN) on 05.12.2024 and all the claims are being processed and settled through SCAN
portal only.
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