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What is the AAY scheme?

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The “Antyodaya Anna Yojana” (AAY) was launched in December, 2000 for one crore poorest of the poor families. Since then the scheme has been expanded thrice. The first expansion took place on 5th June, 2003, second expansion on 3rd August, 2004 and third expansion on 12th May 2005, increasing the number of families by 50 lakh at each expansion, thus raising the total coverage of AAY families to 2.50 crore.

A A Y contemplated identification of one crore poorest of the poor families from amongst the number of BPL families covered under TPDS within the States and providing them food grains at a highly subsidized rate of Rs.2/ per kg. for wheat and Rs. 3/ per kg for rice.

The States/UTs are required to bear the distribution cost, including margin to dealers and retailers as well as the transportation cost. Thus the entire food subsidy is being passed on to the consumers under the scheme.

The scale of issue that was initially 25 kg per family per month has been increased to 35 kg per family per month with effect from 1st April, 2002.

posted by AGo on 12:57 AM

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