Lok Sabha Question No. 1815 (UNSTARRED), answered on 2022-07-27
Subject: DBT Pilot Scheme
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Harsimrat Kaur Badal

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO.1815

TO BE ANSWERED ON 27 TH  JULY, 2022

## DBT PILOT SCHEME

## 1815.  SHRIMATI HARSIMRAT KAUR BADAL

Will  the  Minister  of  CONSUMER  AFFAIRS,  FOOD  AND  PUBLIC DISTRIBUTION उपभोᲦा मामले , खा᳒ और सावᭅजिनक िवतरण मंᮢी be pleased to state:

- (a) whether the Government has taken up Direct Benefit Transfer (DBT) pilot scheme in lieu of foodgrains in parts of the country;
- (b) if  so,  the  details  thereof  and  results  in  all  such  areas  where Government had completed the pilot scheme or their ongoing scheme is going on;
- (c) the rationale behind starting DBT pilot scheme in the country;
- (d)
- the benefits accrued to the Government out of the scheme; and
- (e) whether DBT scheme is a means to begin the era of non-procurement of foodgrains from States like Punjab and Haryana and if so, the reasons thereof?

## A N S W E R MINISTER OF STATE FOR MINISTRY OF RURAL DEVELOPMENT AND

CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SADHVI NIRANJAN JYOTI)

- (a) & (b): A  scheme  of  cash  transfer  of  food  subsidy  directly  into  the bank  account  of  beneficiaries  of  Public  Distribution  System  instead  of providing foodgrains is already implemented on a pilot basis in the three Union  Territories  namely  Chandigarh  and  Puducherry  since  September, 2015 and urban areas of Dadra and Nagar Haveli since March, 2016. The beneficiaries  in  these  UTs  are  receiving  the  cash  transfer  in  lieu  of foodgrains which they use for purchase of foodgrains of their choice from open market.

(c):   The Direct Benefit Transfer (DBT) experiment aims to (i) reduce the need  for  huge  physical  movement  of  foodgrains  (ii)  provide  greater autonomy  to  beneficiaries  to  choose  their consumption  basket  (iii) enhance  dietary diversity (iv) reduce leakages (v) facilitate better targeting (vi) promote financial inclusion.

(d):    Yes, Sir. In the chosen areas, saving has accrued on account of no costs incurred on procurement incidentals, handling, storage, movement, distribution  and  other  administrative  overheads,  in  the  direct  benefit transfer pilot.

(e):   The scheme of cash transfer of food subsidy scheme is implemented as  per  provisions  of  the  Cash  Transfer  of  Food  Subsidy  Rules,  2015, notified under the National Food Security Act, 2013 (NFSA) on 21.08.2015 which  inter  alia  provides  food  subsidy  in  cash  directly  into  the  bank accounts of entitled households to enable purchase of entitled quantity of foodgrains  from  the  open  market.  The  scheme  can  be  taken  up  in identified  areas,  subject  to  fulfillment  of  certain  conditions  regarding preparedness  for  its  implementation  like  complete  digitization  and  deduplication  of  beneficiary  database,  seeding  of  bank  account  details  in the  digitized  beneficiary  database  and  availability  of  foodgrains  in  the open market. Identified area is defined under the Rules as State or Union Territory  or  any  specified  area  within  the  State  or  Union  Territory  for which there is a written consent of the State Government for implementation of the scheme. It is therefore optional for the States/UTs to implement the cash transfer of food subsidy scheme or continue with distribution  of  foodgrains  as  per  provisions  of  NFSA  through  fair  price shops.

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