Free Ration Ends in June — Will This Crash FMCG Stocks?
🟢 At a Glance:
The government’s flagship PM Gareeb Kalyan Anna Yojana (free ration scheme) is set to end this June 2025. For nearly 80 crore Indians, this has been a lifeline. But now the big question for the markets: Will this hit demand for FMCG stocks like HUL, ITC, Britannia, and Adani Wilmar?
🍚 The Scheme That Fed Half of India
Let’s rewind.
First launched during COVID (April 2020)
Provided 5 kg free rice/wheat per person/month to ration card holders
Extended 10 times since
Total foodgrain distributed: ~1100 lakh tonnes
Annual cost: ₹2.2 lakh crore
But now… it’s ending.
And the impact will be very real, especially in rural India.
Because when free food goes away, so does the spending capacity on packaged biscuits and shampoos.
