# India to spend 6.5% more on food subsidies in fiscal year 2019-20: Sources- Moneycontrol.com

> India's government is set to raise food subsidies by 6.5% for fiscal 2019-20 to about 1.8 trillion rupees, the smallest increase in three years, according to two sources. The increase is intended to help contain the budget deficit before the general election due by May.

- Date: 2019-01-23 · published 2019-01-23T12:00:00.000Z
- Category: policy · region India · magnitude low
- Page: https://feedsoft.ai/events/61064-india-to-spend-6-5-more-on-food-subsidies-in-fiscal-year-2019-20-sources
- Commodities: [Rough Rice](https://feedsoft.ai/c/RICE.md), [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md)

## Why it matters

A tight subsidy increase, combined with a higher government rice purchase price, could strain state stocks and shape India's export and domestic rice and wheat policy. The price effect on world grain markets is limited for now.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| RICE | 2024-05-31 | [India supplies only 3.7% of export restricted food commodities to countries committed two years ago \| Mint](https://feedsoft.ai/events/30204-india-supplies-only-3-7-of-export-restricted-food-commodities-to-countries.md) | +2.4% | -4.9% |
| RICE | 2018-10-08 | [Exploring subsidies and tariffs in India](https://feedsoft.ai/events/62502-exploring-subsidies-and-tariffs-in-india.md) | -1.2% | -1.1% |
| RICE | 2023-11-04 | [India to extend free food grains programme by five years, says Modi \| Reuters](https://feedsoft.ai/events/33137-india-to-extend-free-food-grains-programme-by-five-years-says-modi-reuters.md) | +4.2% | +4.2% |
| RICE | 2020-09-24 | [Agri Commodity Update: India's Sugar Subsidies, Transport Assistance & Food Stock Scrutinized by WTO](https://feedsoft.ai/events/51079-agri-commodity-update-india-s-sugar-subsidies-transport-assistance-and-food.md) | -0.1% | -2.4% |
| RICE | 2024-02-08 | [India’s export restrictions on rice continue to disrupt global markets, supplies, and prices \| Asia and the Pacific Food Security Portal](https://feedsoft.ai/events/31608-india-s-export-restrictions-on-rice-continue-to-disrupt-global-markets-supplies.md) | +0.7% | -5.7% |
| WHEAT | 2024-05-31 | [India supplies only 3.7% of export restricted food commodities to countries committed two years ago \| Mint](https://feedsoft.ai/events/30204-india-supplies-only-3-7-of-export-restricted-food-commodities-to-countries.md) | -5.3% | -10.5% |
| WHEAT | 2018-10-08 | [Exploring subsidies and tariffs in India](https://feedsoft.ai/events/62502-exploring-subsidies-and-tariffs-in-india.md) | -2.7% | +5.8% |
| WHEAT | 2023-11-04 | [India to extend free food grains programme by five years, says Modi \| Reuters](https://feedsoft.ai/events/33137-india-to-extend-free-food-grains-programme-by-five-years-says-modi-reuters.md) | -1.9% | -0.6% |

## Sources

- moneycontrol.com: https://www.moneycontrol.com/news/business/economy/india-to-spend-6-5-more-on-food-subsidies-in-fiscal-year-2019-20-sources-3427211.html

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.