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From Ration to Revolution

How India is building an intelligent Public Distribution System (PDS). Secretary Food & Public Distribution (DFPD) Sanjeev Chopra speaks to Anil Kumar…
Indian Masterminds Stories

The SARTHAK-PDS scheme, approved with a ₹25,530 crore outlay for 2026-31, integrates intra-state transport assistance, FPS dealer margins, and SMART-PDS technology with AI modules (Nirmal for beneficiary registry, ASHA for grievances, and Saksham for supply chain). What are the key milestones and timelines set for rolling out these AI modules across states, and how will the Department monitor their impact on last-mile delivery for ~80 crore beneficiaries?

SARTHAK-PDS is a technology-driven umbrella scheme designed to modernise and strengthen the Public Distribution System through phased implementation during a five-year period (FY 2026–31). Using the AI enabled platforms NIRMAL (real-time PDS beneficiary registry), ASHA (multilingual AI grievance and citizen engagement) and SAKSHAM (AI based supply chain management), the scheme is focusing on unified beneficiary data, proactive grievance redressal, real-time supply chain tracking and ISO aligned process reforms. The following paragraphs outline the phased rollout plan including key interventions envisaged under SARTHAK-PDS.

Financial YearKey action items
FY 2026–27Administrative approval for SARTHAK-PDS.Executing MoUs with all States/UTs and NIC for implementation and technical support. Constituting the Central Project Implementation Team (CPIT).Commencing inter-ministry API integrations for NIRMAL, the national beneficiary registry for real-time data integration with other ministries/departments.
FY 2027–28NIRMAL going live pan-India by March 2027. Scaling ASHA to 3 lakh outbound calls per day.Developing inbound bot VAANI for IVRS and WhatsApp. Establishing an integrated grievance redressal system with unified CPGRAMS integration.Deploying SAKSHAM Vehicle Location Tracking System (VLTS) pan-India.Operationalising State Command Control Centres (SCCC) across all 36 States/UTs.
FY 2027–28 onwardsMonitoring last-mile delivery through real-time dashboards tracking offtake rates, ePoS authentication success, ASHA-reported beneficiary feedback and SCCC-level oversight; Undertaking continuous State-wise corrective interventions based on these dashboard insights.
FY 2028–29ISO certification for SARTHAK-PDS processes to ensure they follow quality management standards and procedures.

For monitoring and governance under the scheme, an Empowered Committee chaired by Secretary (DFPD) has been constituted to take policy-level decisions, and a Central Apex Committee chaired by concerned Joint Secretary has been constituted to review and steer the progress of digital initiatives.

While ONORC has enabled portability, interstate transactions remain limited (historically under 1 million per month in earlier years compared to high intra-state volumes). What is the latest data on monthly interstate and intra-state portability transactions, and what specific administrative steps is the Department taking to increase uptake among migrants, especially in low-performing states?

Since the launch of the One Nation One Ration Card (ONORC) initiative in August 2019, the Department has progressively scaled up the system to enable seamless nationwide portability of NFSA entitlements. The ONORC functionality is now fully operational across all 36 States and Union Territories. Cumulatively, more than 220 crore portability transactions have been recorded under ONORC, facilitating the distribution of over 559 LMT of foodgrains to beneficiaries accessing their entitlements outside their home locations.

Recent PMGKAY transaction data for May 2026 indicates that interstate portability transactions were approximately 7 lakhs, while intra-state portability transactions were about 3.37 crore, reflecting sustained usage of portability features within states alongside gradual growth in interstate utilization.

To further enhance uptake among migrant beneficiaries, particularly in low-performing States, the Department has undertaken a series of targeted administrative measures. These include sustained IEC (Information, Education and Communication) campaigns to improve awareness among migrant populations, regular review and follow-up with States/UTs to strengthen implementation, and the deployment of digital tools such as the ‘Mera Ration’ mobile application, which enables beneficiaries to locate nearby Fair Price Shops (FPS) and access ONORC services more easily. In addition, States are being encouraged to improve Aadhaar seeding, enablement of ePoS devices, and authentication success rates to ensure seamless portability transactions.

Around 6 crore ration cards have been weeded out since 2013 through Aadhaar linkage and de-duplication, with current coverage at ~80.6 crore beneficiaries. What are the current rates of Aadhaar seeding and eKYC completion at the national level, and how is the Department addressing biometric failures and exclusion errors in rural and remote areas?

Aadhaar seeding of NFSA ration cards has reached over 99% at the national level. Biometric (Aadhaar-based) authentication success rates are approximately 98.5% of all ePoS transactions. The remaining transactions are completed through offline authentication modes at ePoS devices in low-connectivity areas, with subsequent synchronisation to the central system once connectivity is restored. The national eKYC completion rate currently stands at about 89.1%.

To address biometric failures and prevent exclusion errors, particularly in rural and remote areas, the Department has instituted a robust non-denial policy. Under this framework, no eligible beneficiary is denied foodgrains due to authentication failure. Alternate mechanisms such as OTP-based authentication or manual verification are permitted in cases of biometric mismatch.

Further, the revised eKYC Standard Operating Procedures (SOPs) provide special facilitation measures for vulnerable groups, including elderly beneficiaries, persons with disabilities, and individuals in remote or low-connectivity regions. Such beneficiaries may complete eKYC through administrative support at the district level, including facilitation via the office of the District Magistrate. These measures ensure that technological constraints do not lead to exclusion of genuine beneficiaries.

DFPD has undertaken ‘Rightful Targeting’ as a nationwide, technology-driven exercise that uses Aadhaar as a unique identifier and converges multiple databases such as UIDAI – Aadhar card holders, CBDT – Income taxpayers, Vahan – vehicle owners, GSTN – business owners among others. The exercise aims to identify and verify beneficiaries so that PDS benefits go only to genuinely eligible households. Since May 2025, about 5.95 crore records have been flagged as duplicate/ silent/ deceased, or as having high-income indicators such as four-wheeler ownership/ company directorship/ high GST payments. After State/UT verification, ~2.40 crore ineligible beneficiaries have been deleted, helping clean the database, improve targeting and subsidy efficiency.

The Department handles grievances through platforms like CPGRAMS and state-level systems, with SARTHAK-PDS introducing AI-based Aasha module capable of handling ~3 lakh complaints daily. What is the current average resolution time for PDS-related grievances, and what operational improvements have been observed in states with high complaint volumes?

PDS-related grievances are currently handled through CPGRAMS, State-level portals, the 1967 toll-free helpline, CM helplines, NFSA/SMART PDS portal, Anna Sahayata (WhatsApp), Mera Ration mobile app and the ASHA outbound-call system. ASHA system proactively contacts beneficiaries within 48 hours of an FPS transaction and auto-registers a grievance where short quantity, poor quality, or overcharging is reported. ASHA currently operates at approximately 1.5 lakh calls/day and is being scaled to 3 lakh/day under SARTHAK-PDS, with an inbound facility and full integration into CPGRAMS and other grievance portals.

This proactive, AI-driven model has enabled early identification of problem districts, blocks, and individual FPS, allowing the Department and States to intervene ahead of grievance escalation rather than relying solely on beneficiary-initiated complaints. The states are proactively acting on the grievances and negative feedback being received through ASHA and other portals improving the overall beneficiary experience.

FCI, CWC and state agencies have covered storage capacity exceeding 900 lakh MT, yet utilisation challenges and spoilage risks persist amid surplus stocks. What is the current national average utilisation rate of storage facilities, and how is the Department coordinating with States to optimize the World’s Largest Grain Storage Plan in Primary Agricultural Credit Societies (PACS)?

As on 01.06.2026, the total storage capacity available for Central Pool foodgrains with FCI and State Government agencies, including covered and CAP storage, is 977.91 Lakh MT, comprising 515.54 Lakh MT with FCI and 462.37 Lakh MT with State agencies. In addition, CWC has approximately 159 Lakh MT storage capacity with about 97% occupancy, while 19 State Warehousing Corporations together have around 625 Lakh MT capacity with an average occupancy of 83%. FCI’s storage infrastructure comprises conventional covered godowns, modern steel silos and CAP storage. The average utilisation of FCI’s owned and hired storage capacity is about 93% as on 01.06.2026, indicating efficient utilisation of available storage infrastructure.

Storage infrastructure of FCI and CWC is being monitored on Depot Darpan Portal which is a self-assessment portal where warehouses/depots are rated based on the different parameters including infrastructure, operations, safety, hygiene, accessibility, and service readiness.

To strengthen storage availability and optimise capacity utilisation, the Department regularly engages with State Governments and implementing agencies. Efforts are being made to utilise capacities created under the World’s Largest Grain Storage Plan (WLGSP) through Primary Agricultural Credit Societies (PACS), wherever operationally feasible. The Department also assists in assessment of storage gaps by engaging FCI and CWC to ensure optimum creation and utilization of storage infrastructure.

With large-scale procurement and distribution of rice and wheat, maintaining quality remains a challenge. What are the latest findings from quality inspections and third-party audits of foodgrains at FCI godowns and Fair Price Shops, and what administrative protocols are in place to minimise infestation and deterioration?

Quality preservation in FCI godowns is being maintained through prescribed scientific storage practices, periodic inspections at multiple levels, and preventive as well as curative pest-control measures. Available inspection and review inputs indicate that grain health is being monitored regularly through a system of checks and super checks, supported by Damage Monitoring Cells at District, Regional and Zonal levels to track quality and reduce damages. Key administrative and operational protocols have been instituted across FCI godowns and transit points to safeguard grain quality and minimise storage and transit losses.

Foodgrains are stored as per the scientific code of practices, using adequate dunnage (wooden crates, bamboo mats, polythene sheets) and elevated plinths with waterproof polythene covers in CAP/transit storage to prevent floor moisture and rain exposure. All godowns are equipped with fumigation covers, nets and insecticides. Periodic prophylactic spraying and curative fumigation with aluminium phosphide are undertaken, alongside door nets and rat‑control measures to minimise infestation. A structured system of fortnightly, monthly, quarterly and super checks are conducted by Technical Assistants, QC managers and senior officers’ to monitor grain health, supported by regular inspections of godowns and stacks.

Many states participate in decentralised procurement, but variations in efficiency exist. How does the Department monitor state-wise performance in procurement, storage, and distribution under NFSA, and what mechanisms are used to address delays or shortfalls in under-performing states?

Under Decentralized Procurement (DCP) scheme, the State Government undertakes direct purchase of paddy/rice and wheat, stores and distributes the foodgrains under NFSA and other welfare schemes. The estimates for procurement of wheat and paddy are finalized by Gol in consultation with the respective State Governments during the Food Secretaries’ Conferences held twice a year, prior to the commencement of the Kharif Marketing Season (KMS) and the Rabi Marketing Season (RMS).

The estimates are determined considering factors like estimated production and past procurement trends. Procurement in a State depends not only on production but also on several dynamic factors, including marketable surplus available with farmers, the Minimum Support Price (MSP), participation of private traders and prevailing market prices. 

To facilitate real-time monitoring of procurement operations, State procurement portals have been integrated with the Central Foodgrains Procurement Portal (CFPP). The portal provides a unified platform for monitoring procurement progress across States, enables data-driven decision-making, and promotes transparency and uniformity in procurement operations. To address delays or shortfalls in under-performing States, the Department along with undertakes continuous engagement through review meetings, video conferences, and coordination via FCI’s regional offices.

Specific corrective mechanisms include targeted advisories, deployment of central teams for on-ground assessment, technical support for system strengthening (such as ePoS enablement and supply chain digitisation), and reallocation or diversion planning where required. This coordinated approach ensures timely procurement, efficient storage utilisation, and seamless distribution under NFSA.

FPS dealers often face viability issues due to low margins and operational costs. With SARTHAK-PDS providing enhanced support for dealer margins, what data does the Department have on average monthly offtake per FPS and dealer earnings, and how will the scheme improve dealer sustainability at the ground level?

In the TPDS under the NFSA Act, 2013, the operational responsibility including issuance of licenses to Fair Price Shops (FPSs), supervision and monitoring of the functioning of Fair Price Shops etc., rests with the concerned State/UT Government. As per sub-clause (7) of clause 9 of the TPDS (Control) Order, 2015, it is the responsibility of the State Government to fix fair price shop owner’s margin, and this shall be periodically reviewed for ensuring sustained viability of the fair price shop operations. 

The Central Government only provides the assistance to States/UTs for meeting the expenditure towards intra-State movement & handling of foodgrains and fair price shop dealers’ margin under the NFSA in accordance with the provisions of Food Security (Assistance to State Governments) Rules, 2015 (as amended from time to time) which inter-alia provides for norms of expenditure and pattern of central sharing. To ensure viability of Fair Price Shops, the norms of FPS Dealers margin were enhanced as per the details given below:

Category of StatesComponent of FPS marginPre-revised norms (Rate in rupee per quintal) (w.e.f. 1.4.2022)Revised norms (Rate in rupee per quintal) (w.e.f. 1.4.2026)
General Category States/UTsTransportation & handling7070
FPS Dealers Margin90100
Additional margin for sale through point-of-sale device2111
Special category States/UTs*Transportation & handling105105
FPS Dealers Margin180195
Additional margin for sale through point-of-sale device2611

*Special category states include Sikkim, Himachal Pradesh, Jammu & Kashmir, Ladakh, Uttarakhand, Andaman & Nicobar Islands, Lakshadweep and seven north east states.

The State Governments are free to fix the actual rates, which can be higher than the norms specified in the rules. Central assistance will be limited to the rates specified in the Rules or the actual average rates for the State as a whole, at which the expenditure was actually incurred by the State Government, whichever is lower.

As per sub-clause (9) of Clause 9 of the Targeted Public Distribution System (TPDS) Control Order, 2015, the State Government shall allow sale of commodities other than the foodgrains distributed under the TPDS at the fair price shop to improve the viability of the fair price shop operations. It has been the endeavor of the Government to improve the financial viability of Fair Price Shops (FPSs) by providing additional business avenues to FPS dealers and enhancing beneficiary experience through the provision of value-added services at FPS.

To improve the financial viability of FPSs, Government of India had requested all State/UT Governments to take up initiatives through FPSs such as providing banking services through tie-up with banks/corporate Banking Correspondents, banking and citizen-centric services of India Post Payment Bank (IPPB), Retail selling of small (5kg) LPG cylinders, Sale of other commodities/ general store items etc. 

The Department has also partnered with the Ministry of Skill Development & Entrepreneurship (MSDE) to enhance the capacity and confidence of Fair Price Shop (FPS) dealers by equipping them with essential entrepreneurship and business management skills. Under this collaboration, NIESBUD (an autonomous institute under MSDE) has developed a specialised training programme for FPS dealers covering digital and financial literacy, e-commerce, retail management, and basic nutrition.

To date, approximately 325 FPS dealers across nine States (Rajasthan, Uttar Pradesh, Gujarat, Telangana, Karnataka, Odisha, Madhya Pradesh, Tamil Nadu, and Bihar) have undergone this training programme. As a result, 90 FPS outlets have been converted into Jan Poshan Kendras (JPKs) across five cities: Hyderabad, Ghaziabad, Jaipur, Ahmedabad and Indore, improving their commercial viability and community outreach.

Transportation and handling costs form a significant part of operations. Under the new SARTHAK-PDS logistics support, what targets has the Department set for reducing transit losses and delivery timelines, and how will real-time tracking (via Saksham Al module) be integrated with existing systems like Annavitran?

FCI transports foodgrains from surplus/procuring States to deficit/consuming States for distribution under the National Food Security Act (NFSA) and other welfare schemes. The mode of transportation rail or road is selected based on operational feasibility and cost-effectiveness. More than 80% of inter-State movement of foodgrains is undertaken through railways. In contrast, about 90% of intra-State movement is carried out by road, as such movements are generally over shorter distances where road transport is more economical.

Through various operational measures, including the use of dunnage in rail wagons, single-use seals and implementation of the Vehicle Location Tracking System (VLTS) for inter-State Road movement, transit losses have been reduced to about 0.17%, one of the lowest levels achieved by FCI. VLTS enables real-time monitoring of foodgrain movement through a centralized command and control system.

The SAKSHAM module under SARTHAK-PDS is presently under implementation and is intended to strengthen monitoring and operational efficiency across the foodgrain supply chain. Targets relating to delivery timelines, transit-loss reduction and integration with other digital platforms, including Annavitran, will be finalized as the system is operationalized and scaled up.

Further, the Department has already achieved significant logistics optimization through the Anna Chakra initiative. The initiative has resulted in an estimated annual transportation cost saving of about ₹280 crore, reduction in transportation lead distances by nearly 25%, and reduction in carbon emissions by around 35%, while also improving warehouse utilization, transparency and data-driven planning of foodgrain movement.

The Department maintains robust dashboards for PDS transactions. What key performance indicators (KPIs) does your office track monthly for PDS efficacy (e.g., offtake rates, leakages, biometric authentication success), and how is this data used to drive corrective administrative actions across states?

The Department tracks a monthly KPI set covering foodgrain offtake against allocation at State and FPS level, ePoS and Aadhaar authentication success, ONORC portability volumes, exclusion and rightful targeting metrics, ASHA-based beneficiary feedback and grievance patterns, and storage and transit indicators under SAKSHAM.

This data is used to compare State performance, flag persistent shortfalls, and trigger corrective action. Underperforming States and UTs are taken up through formal communications to State Food Secretaries, technical support and handholding, and review in State Apex Committee and State Command Control Centre forums, enabling data-driven, corrective administrative action rather than retrospective course correction alone.

At the ground level, the monthly dashboard helps identify where the bottleneck lies, whether in lifting, authentication, distribution, grievance redressal, or logistics. That allows the Department and States to move from general monitoring to targeted administrative intervention, including process fixes, system debugging, and follow-up with specific districts or FPS networks.


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