Cabinet approves distribution of free foodgrains till November

NEW DELHI: The Union Cabinet on Wednesday approved extending the scheme for distribution of free foodgrains to the country’s poorest until the end of November to help them cope with the economic pain of the Coronavirus-induced lockdown. Briefing reporters about the decisions taken by the Union Cabinet headed by Prime Minister Narendra Modi, Information and Broadcasting Minister Prakash Javadekar said 81 crore poorest will be provided 5 kg free foodgrains per person for five more months and one kg pulses per month. The scheme would cost Rs 1.49 lakh crore.

Also, the government allowed 7.4 crore poor women to avail three free LPG cylinders till September.

Previously, they were to avail of this quota between April and June, he said.

Also, the Cabinet approved the extension of the EPF contribution 24 per cent (12 per cent employees share and 12 per cent employers share) for another three months from June to August 2020. The move will benefit over 72 lakh employees and cost the government Rs 4,860 crore.

The government on Wednesday also approved setting up an agriculture infrastructure fund with a corpus of Rs 1 lakh crore to provide financial support to entrepreneurs, start-ups, agritech players and farmer groups for infrastructure and logistics facilities.

The Agri-infra Fund was part of the Rs 20 lakh crore stimulus package announced in response to the COVID-19 disaster. Briefing the media about the cabinet decisions, Agriculture minister Narendra Singh Tomar said: “It is a historical decision. This will further the agriculture sector.”

He said financial facilities of over Rs 1 lakh crore will be provided to primary agri credit societies, farmers groups, Farmer Producer Organisations (FPOS), agri-entrepreneurs, start-ups and agri-tech players.