The Union Government has proposed amendments to the National Food Security Act (NFSA), 2013, which are opposed by Tamil Nadu and Kerala.
The draft amendment proposes 7 kg of foodgrains per person per month for Antyodaya Anna Yojana (AAY) beneficiaries, subject to a maximum of 35 kg per household.
The Centre says the change aims to ensure fairer per capita allocation by reducing inequalities between small and large households.
Tamil Nadu and Kerala argue that the amendment will reduce foodgrain allocations to their smaller-sized families and increase household expenses.
Tamil Nadu estimates its monthly AAY allocation would decline from 65,261 tonnes to 42,040 tonnes under the proposed system.
Both States have urged the Centre to retain the existing 35 kg per household entitlement for AAY beneficiaries.