Policy Update
Tanisha Hooda
Background
The Public Distribution System (PDS) plays an important role in ensuring food and nutritional security for vulnerable sections of the population. Under the National Food Security Act (NFSA), 2013, the Government of India is committed to ensuring access to adequate quantities of quality foodgrains. The PDS operates through a network of Fair Price Shops (FPSs) and serves a large beneficiary base across States and Union Territories.
Against this backdrop, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the continuation of the SARTHAK-PDS umbrella scheme on 27 May 2026. With a Central share of ₹25,530 crore, the scheme integrates two existing initiatives: the Assistance to State Agencies for intra-State Movement of Foodgrains and FPS Dealers’ Margin under NFSA and the Scheme for Modernization and Reforms through Technology in Public Distribution System (SMART-PDS).
The merger of SMART-PDS into SARTHAK-PDS provides for administrative integration and unified funding, enabling technology-driven reforms in the Public Distribution System to be implemented alongside foodgrain movement and FPS dealer support under a single umbrella framework. The integrated scheme will operate up to 31 March 2031 and aims to provide financial support for the intra-State movement and handling of foodgrains, along with assistance towards FPS dealers’ margin.
SARTHAK-PDS also builds upon the Government’s efforts to modernize the PDS through digital technologies. Earlier initiatives such as End-to-End Computerization of TPDS, Integrated Management of PDS (IM-PDS) and SMART-PDS have contributed to the digitization of ration cards, Aadhaar seeding, e-PoS-based FPS automation, online allocation and computerized supply-chain management.
Building on these reforms, the technology component of SARTHAK-PDS seeks to strengthen a unified, citizen-centric and interoperable PDS architecture using technologies such as Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing (NLP) and Blockchain. The scheme is intended to improve transparency, reduce leakages, strengthen real-time monitoring and enhance the efficiency and reliability of foodgrain distribution for the approximately 81.34 crore persons covered under the NFSA.
Functioning
1. Institutional Integration and Standardization of PDS Operations: Through its SMART-PDS component, SARTHAK-PDS seeks to standardize PDS operations across States and Union Territories by promoting institutional integration. It facilitates coordination among key institutions such as the Food Corporation of India (FCI), Central Warehousing Corporation (CWC) and UIDAI through interconnected systems and common operational frameworks. This institutional integration is intended to improve coordination among stakeholders involved in the movement and distribution of foodgrains, while promoting greater transparency and efficiency in PDS operations.
2. Data Governance and Analytics for PDS Management: Another important function of the technology component of SARTHAK-PDS is to strengthen data governance and the use of analytics for PDS management. The scheme promotes real-time data collection, data analytics, Business Intelligence (BI) platforms and other ICT tools to support effective monitoring and evidence-based policy decisions. It also seeks to address technological limitations at the State/UT level by strengthening IT hardware, software and technical manpower. These measures are intended to improve the quality, consistency and reliability of PDS data, enabling authorities to monitor operations more effectively and make informed decisions.
3.Strengthening National Portability through ONORC: One of the key functions of SARTHAK-PDS is to strengthen national portability under the One Nation One Ration Card (ONORC) system. This enables eligible beneficiaries to access their entitled foodgrains at Fair Price Shops even when they move from one State or Union Territory to another. This is particularly important for migrant beneficiaries who may change their place of residence for employment or other reasons. By building on existing computerisation and interoperable digital systems, the scheme supports greater flexibility and continuity in access to foodgrain entitlements.
4.Financial Support for Foodgrain Movement and FPS Dealers: A key component of SARTHAK-PDS is providing financial assistance for the intra-State movement and handling of foodgrains. This support helps States and Union Territories meet the costs involved in transporting and handling foodgrains within the State and facilitates their movement through the PDS distribution chain. The scheme also provides financial assistance towards the FPS dealers’ margin, supporting Fair Price Shops that serve as the final point of distribution to beneficiaries. Together, these measures are intended to strengthen the last-mile delivery of foodgrains.
5.Strengthening Grievance Redressal and Monitoring: SARTHAK-PDS seeks to strengthen the monitoring of PDS operations and grievance redressal through technology-enabled systems. The scheme envisages AI-driven grievance redressal and analytics systems to help identify issues and support timely responses. It also proposes State Command Control Centres for data-based oversight of PDS operations. These mechanisms can help authorities identify operational gaps, respond to beneficiary concerns and improve accountability in foodgrain distribution.
Performance
1. Digitalisation and Automation of PDS: The technology-enabled reforms in the Public Distribution System have resulted in near-universal digitalisation and automation. By 2025, 100% of ration card and beneficiary data had been digitised, covering around 20.55 crore ration cards and 79.8 crore beneficiaries. Further, 99.9% of ration cards had been Aadhaar-seeded, while 99.8% of Fair Price Shops (5.50 lakh out of 5.51 lakh) had been automated through e-PoS devices. More than 98% of foodgrain distribution transactions were also biometrically/Aadhaar authenticated.
Figure 1: Digitalisation and Technology Adoption in PDS, 2025
Source: DFPD, Year End Review 2025
The graph highlights the near-universal adoption of digital technologies across the PDS, with digitisation, Aadhaar seeding and e-PoS automation exceeding 99%. The consistently high coverage across these measures indicates that digital infrastructure has become a core part of PDS operations, creating a stronger foundation for transparent distribution, beneficiary authentication and portability of foodgrain entitlements.
2. Expansion and Utilisation of ONORC: The One Nation One Ration Card (ONORC) system has expanded across the country, with portability enabled in all 36 States/UTs and covering around 79.8 crore NFSA beneficiaries. Since its inception, more than 195.9 crore portability transactions have been recorded, delivering over 464.7 LMT of foodgrains. During the first ten months of 2025 alone, around 32.6 crore portability transactions were recorded, through which approximately 64 LMT of foodgrains were delivered.
Figure 2: ONORC Portability Transactions and Foodgrain Distribution, 2025 (First 10 Months)
Source: DFPD, Year End Review 2025
The 32.6 crore portability transactions alongside 64 LMT of foodgrains delivered during the first ten months of 2025 demonstrate the scale at which ONORC has enabled beneficiaries to access foodgrain entitlements across locations, particularly supporting greater portability and continuity of access for migrant and mobile households.
3. Improving Supply-Chain Efficiency through Technology: Technology has also been used to improve the efficiency of foodgrain transportation under the Anna Chakra route-optimisation initiative. Route optimization assessments were completed in 31 States, with annual transportation-cost savings estimated at around ₹250 crore, of which ₹238 crore had been reported as savings by States. The initiative also reduced average transportation distances by up to 50% and CO₂ emissions by up to 35%.
Figure 3: Efficiency Gains from Anna Chakra Route Optimisation
Source: DFPD, Year End Review 2025
The 32.6 crore portability transactions alongside 64 LMT of foodgrains delivered during the first ten months of 2025 demonstrate the scale at which ONORC has enabled beneficiaries to access foodgrain entitlements across locations, particularly supporting greater portability and continuity of access for migrant and mobile households.
4. Strengthening Data-based Monitoring of PDS: The PDS is increasingly supported by systematic data collection and monitoring at the Central and State/UT levels. Data on AAY and PHH ration card holders, NFSA beneficiary coverage, Fair Price Shops, e-PoS systems, foodgrain distribution and ONORC transactions enables authorities to track implementation and identify variations across States and Union Territories. Under SARTHAK-PDS, these data-driven mechanisms are further strengthened through technology-enabled monitoring, data analytics and integrated information systems, providing a more consistent basis for identifying operational gaps and improving last-mile delivery.
Table 1: Comparison of Data-Based Monitoring under PDS and SARTHAK-PDS
| Aspect | PDS | SARTHAK-PDS |
| Beneficiary data | AAY and PHH ration card and NFSA beneficiary data | Strengthened use of beneficiary data through integrated digital systems |
| Distribution monitoring | Monitoring of foodgrain allocation and distribution | Technology-enabled monitoring and analytics for improved oversight |
| FPS monitoring | e-PoS and Fair Price Shop-level information | Greater integration of digital systems supporting FPS operations |
| Portability monitoring | ONORC transaction data tracks portability | Uses technology and data systems to strengthen portability and implementation monitoring |
| Data use | Tracks implementation and identifies variations | Promotes data analytics and Business Intelligence for informed decision-making |
| Key outcome | Improved monitoring of PDS delivery | More integrated, consistent and data-driven PDS management |
5. Strengthening Evaluation and Evidence-based Decision-making: The Department has also institutionalised statistical evaluation to improve the implementation of food-security programmes. The Statistics Division is responsible for the concurrent evaluation of the National Food Security Act (NFSA), 2013, using statistical methodologies. It also supports specific surveys to assess the penetration of Minimum Support Price (MSP) operations and prepares the Department’s monthly Foodgrains Bulletin, providing regular information on foodgrain-related developments. In addition, integrating information maintained by different divisions and government departments provides a more consolidated evidence base for policy monitoring and decision-making.
Impact
1. Improved portability of foodgrain entitlements: The One Nation–One Ration Card (ONORC) initiative has made foodgrain entitlements portable across States and Union Territories. Beneficiaries can access their entitled foodgrains from an eligible Fair Price Shop (FPS) outside their home location without obtaining a new ration card. This has particularly benefited migrant workers and other mobile households by allowing them to continue accessing their foodgrain entitlements after moving for employment or other reasons.
2. Strengthened continuity of food security: By enabling beneficiaries to access their foodgrain entitlements away from their registered location, ONORC reduces the risk of disruption in access to subsidised foodgrains when households migrate. Portability allows eligible households to retain access to their entitlements despite changes in their place of residence or employment, thereby supporting continuity of food security among mobile and migrant households.
3. Enhanced transparency and beneficiary authentication: The expansion of digital systems, including Aadhaar-based authentication and electronic Point of Sale (e-PoS) devices, has strengthened the verification of beneficiaries and recording of transactions at Fair Price Shops. These mechanisms improve transparency in the delivery process by creating digital transaction records and reducing the scope for duplication and irregularities in the distribution of subsidised foodgrains.
4. Strengthened digital integration of PDS operations: The implementation of portability has encouraged greater interoperability between State and Union Territory PDS systems and central platforms. Digital integration enables beneficiary information and foodgrain entitlements to be accessed across locations, thereby improving coordination and traceability in PDS operations. It also strengthens the technological foundation for a more integrated and transparent national foodgrain distribution system.
5. Established a foundation for further technology-enabled PDS reforms: The expansion of national portability has created an important technological and institutional foundation for the modernisation of the PDS. By promoting interoperable digital systems across States and Union Territories, the reform provides a scalable framework for improving foodgrain distribution, strengthening transparency and supporting the integration of new technology-based services. This can help the PDS evolve towards a more efficient, integrated and beneficiary-oriented system
Emerging Issues
1.PDS Coverage and Targeting: The PDS currently covers nearly 800 million people, making it one of the world’s largest food-security systems. However, changes in population, income and poverty patterns raise concerns about whether existing beneficiary lists adequately reflect current levels of vulnerability. At the same time, reducing coverage without updated socioeconomic data could risk excluding households that still face food insecurity. Periodic revision of beneficiary lists is therefore necessary to improve targeting while ensuring that vulnerable groups are not excluded.
2.Rising Fiscal Burden: The food subsidy has increased substantially in recent years due to rising procurement, storage and distribution costs. While government support is essential for protecting food security, continuously increasing expenditure can create pressure on public finances and affect the long-term sustainability of the programme. The Central Government and the Food Corporation of India (FCI) should improve procurement, storage and supply-chain efficiency, reduce avoidable wastage and operational costs, and promote more efficient use of public resources without compromising the food security of vulnerable households.
3.Cereal-Centric Food Basket: The PDS primarily provides rice and wheat, which are important for meeting basic calorie requirements but do not provide sufficient protein, vitamins and minerals on their own. Therefore, continued dependence on cereals may address hunger in terms of calorie availability but may not adequately address hidden hunger and micronutrient deficiencies. The Central and State Governments should gradually diversify the PDS food basket by including nutrient-rich foods such as pulses, millets and fortified food items, particularly for children, women and other nutritionally vulnerable groups.
4.Persistence of Malnutrition: Although access to food has improved, India continues to face nutritional challenges such as anaemia, stunting, wasting and underweight, especially among women and children. This indicates that food security cannot be achieved only by providing sufficient quantities of cereals; nutrition also depends on healthcare, maternal care, sanitation and awareness. The Ministries of Consumer Affairs, Food and Public Distribution, Health and Family Welfare, and Women and Child Development should work together to integrate PDS with programmes such as POSHAN Abhiyaan, Anaemia Mukt Bharat, PM POSHAN and Saksham Anganwadi & POSHAN 2.0.
5.Outdated Beneficiary Identification: NFSA coverage is based on population estimates linked to the 2011 Census, which may not fully reflect India’s present population and socioeconomic conditions. Changes in migration, income and household circumstances can therefore result in some deserving families being left outside the system, while some existing beneficiaries may no longer require the same level of assistance. The Central and State Governments should move towards more dynamic beneficiary identification using updated socioeconomic data and strengthen grievance-redressal mechanisms so that eligible households can be added and outdated records can be corrected regularly.
The PDS also needs to move beyond a primarily cereal-based approach towards broader nutrition security. While the system has been effective in ensuring access to foodgrains, addressing persistent nutritional deficiencies requires greater dietary diversity. Expanding the food basket to include nutrient-rich foods such as pulses, millets and fortified food products can help make the PDS more nutrition-sensitive and responsive to changing dietary needs.
Way Forward
Going forward, the Public Distribution System (PDS) should evolve from being a mechanism for distributing subsidised cereals into becoming a broader instrument of food and nutrition security. Alongside ensuring adequate foodgrain availability, greater emphasis should be placed on diversifying the food basket with nutrient-rich foods such as pulses and millets, particularly for nutritionally vulnerable groups. Stronger convergence with nutrition and health programmes can further help address malnutrition and improve the nutritional outcomes of PDS beneficiaries.
The long-term sustainability of the PDS will also depend on better targeting and efficient use of public resources. Beneficiary identification should be periodically updated using reliable and current socioeconomic information so that eligible households are included while outdated records are corrected. At the same time, improvements in procurement, storage, transportation and distribution can reduce avoidable costs and wastage. Technology-enabled monitoring, stronger grievance-redressal mechanisms and interoperable digital systems should also be strengthened to improve transparency and ensure timely delivery of entitlements.
Overall, the future of the PDS lies in balancing inclusion, nutrition, efficiency and fiscal sustainability. A more dynamic and needs-based system can ensure that food security programmes remain responsive to changing demographic and socioeconomic conditions. In this way, the PDS can contribute to the vision of a New India not merely by ensuring access to food, but by supporting better nutrition, reducing vulnerability and strengthening the foundations of inclusive human development. Going forward, SARTHAK-PDS should evolve towards a nutrition-sensitive and AI-enabled PDS that uses real-time beneficiary and consumption data to identify nutritional needs, improve targeting, strengthen supply-chain management and enable more responsive delivery of food and nutrition support.
References
Ministry of Consumer Affairs, Food & Public Distribution, 2026, SARTHAK-PDS: Strengthening Public Distribution System, Press Information Bureau, Government of India. Available at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2265795®=48&lang=2
Department of Food & Public Distribution, 2026, Distribution of Food Grains (PD), Ministry of Consumer Affairs, Food & Public Distribution, Government of India.
Available at: https://dfpd.gov.in/distribution-of-food-grains/en
Department of Food & Public Distribution, 2026, Annual Report 2025–26, Ministry of Consumer Affairs, Food & Public Distribution, Government of India.
Department of Food & Public Distribution, 2025, Department of Food & Public Distribution: Year End Review – 2025, Press Information Bureau, Government of India
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2210211®=48&lang=2
Department of Food & Public Distribution, 2026, Statistics, Ministry of Consumer Affairs, Food & Public Distribution, Government of India.
https://dfpd.gov.in/statistics/en
Press Information Bureau, 2019, “One Nation – One Ration Card Scheme,” Government of India, Ministry of Consumer Affairs, Food & Public Distribution.
https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1580396®=48&lang=2
NEXT IAS Current Affairs Team, 2026, “Reorienting Public Distribution System (PDS): From Food Security to Nutrition Security,” NEXT IAS, 27 July 2026.
https://www.nextias.com/ca/editorial-analysis/27-07-2026/public-distribution-system-nutrition
About the Contributor Tanisha Hooda is a Research Intern at the Impact and Policy Research Institute (IMPRI) and a B.A. (Hons.) Economics graduate from Manav Rachna International Institute of Research and Studies (MRIIRS), Faridabad. Her research interests include competition policy, digital economy, public policy, and economic development, with a focus on analysing the socio-economic implications of emerging policy frameworks.
Acknowledgement- The author extends sincere gratitude to Kavin and Ambika Sharma for their valuable guidance, support, and review of the Policy Update.
Disclaimer
All views expressed in the article belong solely to the author and not necessarily to the organization.
Reviewed by Kavin and Ambika Sharma.
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