PM POSHAN Scheme: Government Increases ‘Material Cost’ by 9.5%, Allocates Additional Rs 954 Crore for FY26
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Synopsis
The Ministry of Education has increased the ‘Material Cost’ by 9.5% for the PM POSHAN Scheme, effective May 1. This change will cost the central government an extra Rs 954 crore in FY26 and aims to enhance nutritional support for students in government and aided schools.
Key Takeaways
- 9.50% increase in ‘Material Cost’ for PM POSHAN Scheme.
- Effective from May 1 across all states/UTs.
- Additional Rs 954 crore allocated for FY26.
- Approximately 11.20 crore students served.
- Full coverage of foodgrains costs by the government.
New Delhi, April 10 (NationPress) To enhance the PM POSHAN Scheme, the Ministry of Education has announced a 9.50 percent increase in the ‘Material Cost’, which will take effect across all states and Union Territories starting May 1. This adjustment will lead to an additional financial burden of around Rs 954 crore for the central government in FY26.
Besides the ‘Material Cost’, the government also supplies approximately 26 lakh MT of foodgrains via the Food Corporation of India.
The central government fully covers the cost of foodgrains, which includes an annual subsidy of around Rs 9,000 crore, as well as the complete transportation expenses from FCI depots to schools.
When considering all components, including the foodgrains cost, the per meal expenditure under the scheme is nearly Rs 12.13 for Bal Vatika and Primary classes and Rs 17.62 for upper primary classes.
The rise in ‘Material Cost’ has been determined based on the inflation index provided by the Labour Bureau, as per the Ministry of Education.
The PM POSHAN Scheme is a centrally-sponsored initiative that provides one hot cooked meal to 11.20 crore students enrolled in Balvatika and classes I to VIII, across 10.36 lakh government and government-aided schools on all school days.
This scheme aims to ensure nutritional support and boost school attendance among students. Under the PM POSHAN Scheme, ‘Material Cost’ funds the purchase of various ingredients necessary for meal preparation.
The Labour Bureau supplies inflation data for items included in the PM POSHAN basket based on the Consumer Price Index–Rural Labourers (CPI-RL), which has been aligned with the CPI index for PM POSHAN, resulting in a specific CPI index for the PM POSHAN basket.
The CPI-RL is developed by the Labour Bureau in Chandigarh through the continuous collection of monthly prices from a sample of 600 villages across 20 States.
“These 'Material Cost' rates represent the minimum mandatory levels; however, States/UTs are encouraged to contribute beyond their required share, as some have been providing additional resources to enhance the nutritional quality of meals under the PM POSHAN Scheme,” the ministry noted.
