Sugar Subsidy Scheme for AAY Families Extended till 2026

The government has announced the extension of the sugar subsidy scheme for Antyodya Anna Yojna (AAY) families for two more years till March 31, 2026. The scheme provides subsidized sugar to the poorest of the poor through the Public Distribution System (PDS). The decision is expected to benefit about 1.89 crore AAY families across the country.

What is the sugar subsidy scheme?

The sugar subsidy scheme was launched in 2002 to provide sugar to AAY families at a subsidized rate of Rs 13.50 per kg. The scheme was later revised in 2014 and the subsidy was increased to Rs 18.50 per kg. The central government bears the entire cost of the subsidy and reimburses the participating states for the same. The states are responsible for procuring and distributing sugar to the AAY families through PDS.

Why is the scheme extended?

The government has extended the scheme for two more years till March 31, 2026, as part of its commitment to ensure food and nutrition security for all, especially the most vulnerable sections of society. The scheme facilitates access of sugar to the poorest of the poor and adds energy to their diet so that their health improves. The government has also been providing free ration under Pradhan Mantri Garib Kalyan Anna Yojna (PM-GKAY) and selling affordable ‘Bharat Atta’, ‘Bharat Dal’, tomatoes and onions through various outlets.

What are the benefits of the scheme?

The scheme is expected to extend benefits of more than Rs 1850 crore during the period of 15th Finance Commission (2020-21 to 2025-26). The scheme is expected to benefit about 1.89 crore AAY families of the country, who are entitled to receive 35 kg of foodgrains per month at highly subsidized rates under PDS. The scheme also helps in stabilizing the sugar prices and supporting the sugar industry.