Parliament Question: Pending Release of Food Subsidy Reimbursement

GOVERNMENT OF INDIA MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION LOK SABHA UNSTARRED QUESTION NO. 2822 TO BE ANSWERED ON 5TH AUGUST, 2026 PENDING RELEASE OF FOOD SUBSIDY REIMBURSEMENT 2822 SHRI KODIKUNNIL SURESH: Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION be pleased to state: (a) whether the State Government of Kerala has submitted representations seeking release of pending food subsidy reimbursement amounting to Rs. 1,079.34 crore under the National Food Security Act (NFSA) and allied schemes for the period 20 17- 18 to 2025-26; (b) if so, the component-wise details of the pending claims including dues relating to mapper report issues, excess distribution of foodgrains, transportation claims normal reduction pending audit finalisation and supplementary bills along with the reasons for non-settlement of each component; (c) whether the Union Government has examined the claims submitted by the State Government of Kerala and the Food Corporation of India (FCI) and if so, the present status thereof; (d) whether the Government proposes to release the eligible pending amount to the State Government of Kerala and if so, the timeline fixed for clearance of the dues; and (e) the details of the measures taken by the Government to ensure timely reimbursement? ANSWER MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA) (a) to (d): Yes Sir. Department of Food and Public Distribution (DFPD) reimburses the expenditure incurred by States that have opted for Decentralized Procurement (DCP) mode including Govt. of Kerala for distribution of food-grains to the beneficiaries of Central Schemes as per allocation made by Government of India. Further, funds are also released by Food Corporation of India (FCI) to the States for the quantum of food-grains handed over to them by States for Central Pool. The difference between Economic Cost and Central Issue Price (CIP), at which foodgrains are issued to States, is reimbursed to FCI and DCP States as food subsidy. Further, the release of food subsidy is an ongoing and continuous process. The subsidy claims are processed keeping in view the opening and closing balance of stocks, procurement, allocation, distribution of food grains, FCI’s reconciliation, Utilization Certificates etc. The food subsidy released to DCP States & FCI is made as per budgetary allocation made by Ministry of Finance (MoF). State wise funds are not allocated by MoFThe admissible provisional subsidy has already been released by DFPD to Govt. of Kerala. As regards, FY 2025-26, State has been informed to rectify its stock flow statement and submit the supplementary claim on SCAN portal. Further as per uniform process of final settlement applicable for all the states, State may claim any additional admissible subsidy, at the time of finalization/settlement of audited accounts for the respectIve years. The details of food subsidy released to Government of Kerala under PMGKAY since 2017- 18 onwards is at Annexure. (e): The Subsidy Claim Application for NFSA (SCAN) portal developed with support from NIC, provides an end-to-end online platform for submission, processing and release of food subsidy under NFSA. The portal covers both provisional and final stages of subsidy claims, from submission by States to scrutiny of bills and cost sheets and release of subsidy to FCI and DCP States. SCAN improves time efficiency, accuracy and accountability, enables real-time tracking, reduces manual intervention and costs, and enhances transparency, in line with the objectives of Digital India. ####8Annexu re ANNEXURE PRFERRED TO IN REPLY TO PART (a) to (d) OF UNSTARRED QUESTION NO. 2822 DUE FOR ANSWER ON 05.08.2026 IN LOK SABHA The details of food subsidy released to State govt. of Kerala under DCP mode since 2017-18 onwards are as below: Financial Year .mount (Rs. In Crore) 2017-18 m7 2018-19 ;20.23 201 9-20 .69.30 2020-2 1 214.98 021-22 777.86 2022-23 1544.89 2023-24 1151.85 2024-25 062.36 025-26 100.51 no ,026-27 (as on 03.08.2026) From April 2020 to December 2022 under Pradhan Mantri Garib Kaiyan Anna Yojana (PMGKAY), 5Kg per month per person free of cost food grain was additionally distributed to all AAY and PHH beneficiaries Se SetScSc