Lok Sabha Question No. 242 (STARRED), answered on 2025-08-06
Subject: Operational Efficiency of PDS
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Naveen Jindal

## MINISTRY  OF CONSUMER AFFAIRS. FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

STARRED QUESTION  NO. 242

TO BE ANSWERED  ON 6TtI AUGUST.2O25

## OPERATIONAL EFFICIENCY OF PDS

## *242.  SHRI NAVEEN JINDAL:

Will the Minister of  CONSUMER  AFFAIRS. FOOD AND PUBLIC DISTzuBUTION be pleased to state:

- (a):  the measures being taken by the Government  to ensure efficient functioning  of the Public  Distribution  System including timely distribution of foodgrains and avoidance  of pilferage;
- (b): the Government's assessment  ol the eflflciency  of the PDS in terms of reaching the beneficiaries  along  rvith the steps being taken to improve its reach and impact;
- (c): the details ol the major issues with the operational  efficiency of PDS in terms of supply chain.  warehousing and distribution  networks;
- (d): the details of the current subsidy  rate on foodgrains under the PDS:
- (e):  the details of the steps being taken by the Govemment  to ensure the effective implementation  of subsidies and price control measures on essential commodities  to protect consumers  from price volatility and exploitation;
- (0: the measures being taken by the Governlnent to ensure  that the PDS supports the rural economy and the impact of the PDS on the rural economy! farmers, agricultural labourers  and sma[[-scale  businesses; and
- (h): the details of Government's plan to further  strengthen  the PDS?

## ANSWER

MINISTER OF CONSUMERAFFAIRS,  FOOD & PUBLIC DISTRIBUTION AND MINISTRY  OF NEW AND RENEWABLE ENERGY

(SHRI PRALHAD JOSHI)

(a) to (h):

A statement  is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (h) OF THE STARRED QUESTION NO.  *242  DUE FOR ANSWER ON 06.08.2025 rN THE LOK SABHA REGARDING.

(a): As part of the technology  driven Targeted Public Distribution  System (TPDS)  reforms, with the aim to improve the transparency and accountability  in  the TPDS, ration cards/beneficiaries  database  have been completely digitized  (  100%) in all StatesfuTs.  The transparency portal and online grievance  redressal  tacility/Toll-free number  have been implemented  in all StatesAJTs. Also. online allocation has been implemented  in all StatesfuTs and supply  chain has been computerized  in 3l StatesfuTs (except UTs olChandigarh,  Puducherry  and Urban area of Dadra & Nagar Haveli which have adopted DBT Cash Transfer  scheme).  Further, for better tracking of foodgrains  distribution,  nearly 5.41 Lakh (99.6%)  out oltotal  5.43 Lakh Fair Price Shops (FPSs) in the country have been automated by installing ePoS devices  for the distribution  of foodgrains in a transparent  manner  (electronically) through biometric/ Aadhaar authenlication  of benefi ciaries.

Furtheq for transparency and proper functioning  of the Targeted Public Distribution System and accountability  of the functionaries in such system, every State Govemment sets up Vigilance  Committees  as specified  in the Public Distribution System  (Control)  Order, 2001, made under the Essential Commodities Act, 1955, as amended  from time to time, at the State, District, Block  and Fair Price shop levels. Therefore,  it is the responsibitity of the concemed state Govt. to maintain a robust public distribution system to ensure smooth  distribution ol food grains  to the targeted  beneliciaries  and to avoid any diversion ofsubsidized  food grains to open market.

Helpline  number  196711800-State  series number is operational in all the States/ UTs for contacting and redressal of the complaints  in Public Distribution  System and filing any type of complaints by the intended  beneficiaries.  As and when complaints, including  pillerage  of NFSA foodgrains, are received in this Depa(ment from any source, they are sent to State/ UT Governments concerned  for inquiry and appropriate action.

(b): This Department  engaged Monitoring Institutions (MIs) of repute to undertake concurrent evaluation of the implementation  of National  Food Security Act, 201 3 (NFSA) in different States/UTs  lor PhaseJ  (2018-20)  and Phase-ll (2020-23).  Reports submitted  by the MIs are available  in public domain  at https://nfsa.gov.in/portaVConcurrent\_Evaluation.

(c): The supply chain and logistics for the Public Distribution System (PDS) involve multiple stages and processes to ensure the smooth distribution  of foodgrains  to the intended beneficiaries. The procurement and distribution  processes in the PDS involve  a coordinated  effort between farmers,  government  agencies, storage  facilities, transporters,  and Fair Price  Shops. Supply Chain Management  software/application  has been developed  and implemented in the most of the States/UTs to electronically  perfbrm entire supply operations  for improving  efficiency  and transparency.  A unified application  is being developed under SMART PDS (Scheme  for Modernization and Reforms  through  Technology in Public Distribution System) that integrates  all facets of PDS operations  from Procurement,  Supply chain & Allocation  to Distribution ol lood grains along with management Ration  Card databases across States &UTs. The system is being developed by NIC and is in various stages ofdeployment across States  & UTs

(d), The current  Economic Cost of the foodgrains are Wheat - Rs.2980.06  per qtl. and Rice Rs.4173.34  per qtl. However, Government of India is providing free of cost foodgrains to the beneficiaries  under PMGKAY

(e): The Govemment  of India distributes  foodgrains  to the beneficiaries  under PMGKAY (Pradhan Mantri Garib Kalyan Anna Yoj ana), Other welfare schemes,  Defence,  Additional allocations  in case of natural calamity  etc. In addition, Government  of India sells surplus  food grains (Wheat  & Rice),  beyond the public  Distribution System  (PDS) and Other Welfare  Schemes (OWS) requirements, through open sale under Open Market Sales Scheme (Domestic) (OMSS(D)).  This helps in increasing  the availability  of foodgrains in the market, control inflation, ensure food security  and make foodgrains  more affordable  for the general  population. In addition,  Bharat Atta and Bharat Rice were launched,  with a view to provide atta (wheat flour) and rice to general  consumers at subsidized  rates under Open  Market Sale Scheme (Domestic) (oMSS(D))  poticy.

The Essential  Commodities Act, (EC Act), 1955 and the Prevention  of Black  marketing and Maintenance  of Supplies of Essential Commodities Act, (PBMMSEC  Act), 1980 provide the legislative and administrative foundations  to the Govemment  to regulate  prices, production, supply, distribution  etc. of essential commodities for maintaining  or increasing their  supplies and for securing their equitabte distribution  and availability at fair prices. In order to prevent hoarding and unscrupulous  speculation  of essential commodities,  stock limits are imposed  under the EC Act. Directives  are issued to the States and UTs to enforce  compliance  with the stock limits by stockholding entities,  and follow-up meetings are held with the StatesruTs to review the status of implementation.

The PBMMSEC Act. 1980, is complementary to the EC Act, 1955. It is implemented through the State GovernmentsfuT  Administrations  for preventing  the illegal and unethical trade practices,  profiteering,  hoarding, and black-marketing  of essential commodities etc. by ordering preventive  detentions for six months ofpersons involved  in such activities.

(0' NFSA covers :upto 75oh ofthe rural population and upto 50% ofthe urban population under Antyodaya  Anna Yojana  (AAY) and priority households  (PHH).  while AAY households, which constitute poorest  of the poor are entitled to 35 kg of loodgrains  per family per month, priority households  are entitled  to 5 kg per person  per month.  The Govemment  of India,  to remove the

financial burden of the poor beneficiaries (including farmers, agricultural labourers, etc.) and to ensure nationwide  unilormity and effective implementation  of the Act, is providing food grains free of cost to Antyodaya Anna Yojana (AAY) households and Priority Households (PHH) beneficiaries.  Many Fair Price Shops (FPS) are run by rural self-help  groups,  cooperatives.  and women self-help groups. PDS operations are also generating employment for rural population by engaging them into loading. unloading.  packaging. and transport  of grains. Centralised procurement  ol food grains (\a'heat, rice, coarse  grains)  at MSP (Minimum  Support Price)  assured market  rate to larmers  and also helped in rural economy. Rural procurement centres/mandis, storage godowns,  silos, etc established closer  to villages  also contribute into rural economy. Procurement of locally grown millets and distribution  through  PDS is also major contributor to the rural economy.  Now, One Nation One Ration  Card facility available  across the country which enables rural labourers  /migrant workers  to avail ration from any Fair Price Shop.

(h): The scheme  "Scheme for Modemization and Reforms through  Technology in Public Distribution  System"  (SMART-PDS)" was launched  to sustain the Information TechnologyJed Reforms to be brought  in the functioning of Public Distribution  System  (PDS)  Operations by overcoming  the state level technological limitations  of PDS operations in all StatesfuTs in respect of  IT Hardware,  Software,  Technical  Manpower  and to institutionalize an integrated central system covering all PDS related operations across  all StatesfuTs. The Depa(ment has also launched  Mera  Ration  App in August  2024 to enhance transparency and accessibility in the Public Distribution  System (PDS). The mobile empowered beneficiaries to access family and ration details,  grievance redressal,  mobile ration  card download,  and FPS rating features.

The Department also conducted extensive data analytics  ofration card databases  across all StatesfuTs, detecting discrepancies  such as duplicate  ration cards, silent cards,  members  aged over 100 years, single-member  households with members below  l8 years, and Aadhaar  records marked as 'Deceased," suspended,"Cancelled.'  or 'lnvalid.' Such benet'iciaries were flagged to States and they were asked  to do further verification  of such members  of ration cards. Accordingly, out of total of 2.94 Cr cases flagged, approx.  1.24 Cr such flagged cases  were deleted  by States  & UTs. This improved  targeting of beneficiaries, enabling  inclusion  of more eligible  persons under PMGKAY within NFSA ceilings.

Two digitat initiatives  have also been launched-Anna  Sahayata and Anna Mitra to enhance PDS efficiency.

- . Anna Sahayata: An advanced  grievance redressal  system under NFSA using WhatsApp and IVRS, featuring  grievance  registration,  a three-tier  escalation  matrix,  and real-time tracking, now operational  across all States/UTs.
- . Anna Mitra: A mobile app for PDS field functionaries offering  secure access to operational  data, stock management,  beneficiary records, inspection  tools, and compliance reporting from district to FPS level. It caters to FPS dealers, Food  supply inspectors and District Food Supply  Officer.

Key benefits  include streamlined  operations,  reduced manual  paperwork, improved  stock visibitity, and data-driven  decision-making.

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