Newsroom, November 09, 2025: India's food subsidy is projected to climb by 7-8% to around Rs 2.2 trillion in the FY27 budget, up from FY26 estimates, driven by higher minimum support prices for key grains and inflationary pressures on procurement costs.
The escalation supports flagship programs like the Pradhan Mantri Garib Kalyan Anna Yojana, which extends free rations to over 80 crore beneficiaries, and aims to stabilise farmer incomes while curbing food inflation through expanded buffer stocks.
Economists note the hike could strain fiscal targets, but it's essential for political pledges and rural demand. A Rs 2.2 trillion allocation would mark a steady rise from Rs 2 trillion in FY26, balancing welfare with deficit control under the Fiscal Responsibility Act.
