India's Food Grain Subsidy to Shift to Per-Person Allocation in Draft Bill
India's Food Grain Subsidy to Shift to Per-Person Allocation

The draft National Food Security (Amendment) Bill, 2026, released on June 24, 2026, proposes a fundamental shift in food grain distribution for India's poorest households, moving from a fixed household quota to a per-person allocation. The Department of Food and Public Distribution has invited stakeholder feedback until July 13.

Key Changes in Food Grain Allocation

The amendment seeks to replace the current system under the National Food Security Act, 2013, where Antyodaya Anna Yojana (AAY) households received a fixed 35 kg of food grain per family per month, and 'priority households' received 5 kg per person per month. The new proposal provides 7 kg of food grains per person per month for AAY households, capped at a maximum of 35 kg per household.

According to the ministry, the existing household-based entitlement under AAY results in significant inequities. Smaller households receive a higher per-capita entitlement, while larger households receive a lower per-capita entitlement, which may fall below that of priority households. The bill aims to eliminate these disparities and ensure fairness in the public distribution system.

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Expert Concerns and Criticism

Agriculture policy analyst Devinder Sharma welcomed the increase from 5 kg to 7 kg but questioned the rationale behind capping the household limit. He told The Tribune, "The increase of food grain quota from 5 kg to 7 kg is heartening, but why cap the household limit? Although the government says that it aims to reduce inequity with the move, it will end up doing just that as bigger families with more members will be at a disadvantage."

Sharma also criticized the mandatory Aadhaar linkage for receiving food grains, arguing it would push beneficiaries out of the system. "In the same country, the kith and kin of a chief minister buy and sell prime land at throwaway prices. Were they also asked about mandatory Aadhaar linkages?" he added.

Economist Praveen Kumar warned of potential fiscal burden and inflationary subsidy implications, urging the government to explain how the move would not burden the exchequer.

Opposition from States and Civil Society

The draft faces opposition from state governments, advocacy groups, and the public over concerns of unequal distribution. Civil society organizations like the Right to Food Campaign have criticized the push towards restrictive identity recognition, including mandatory Aadhaar linkage and targeted databases. They argue that reliance on biometric proof to delete "ineligible" beneficiaries often leads to wrongful exclusion of vulnerable populations.

India's Stand at UN: Calls for UNSC Mandate Review

In a separate development, India called for a review of outdated United Nations Security Council (UNSC) mandates at an Arria-formula meeting on June 24. India's Permanent Representative to the UN, Ambassador Parvathaneni Harish, argued that mediation frameworks under Chapter VI of the UN Charter cannot be treated as perpetual and should be revisited as circumstances evolve.

Harish distinguished Chapter VI from Chapter VII, noting that Chapter VII interventions address immediate threats to peace and have serious consequences if unimplemented. He stressed that Chapter VI mandates require review in line with changing realities. He also criticized Pakistan for politicizing the forum by raising the Jammu and Kashmir issue, reiterating that the Union Territory "has always been, is, and will remain" a matter internal to India.

Corporate Valuation Trends: Reliance Retains Top Spot

According to the fifth edition of the '500 Most Valuable Non-State-Run Enterprises in India' study by Axis Bank's Burgundy Private and Hurun India, the total worth of India's top ten most valuable private companies fell by Rs 11 lakh crore in 2026 to Rs 86 lakh crore, from Rs 97 lakh crore a year ago. Reliance Industries remained the most valuable corporation for the fifth consecutive year, adding over Rs 1.8 lakh crore in value. Bajaj Finance was the largest value generator in percentage terms, with a valuation of Rs 5.8 lakh crore.

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Despite short-term value difficulties, the report noted long-term growth, with seven companies in the top 10 for five years and total top-10 value rising 3.5 times over the past decade. The combined worth of the 500 companies exceeded $3.4 trillion. However, market performance was selective: only 198 of the 500 companies saw value increases, indicating investors reward strong fundamentals over growth narratives. The report also highlighted the expanding depth of entrepreneurship, with 95 new companies joining the list, and the growing importance of Tier-2 and Tier-3 cities like Rajkot, Bikaner, Kumbakonam, and Rajnandgaon.