Subject: Economy

Structural reforms in India's food grain distribution system have been pivotal in ensuring food security and reducing leakages. The transformation from a manual to a digitalized system marks a significant milestone in public service delivery, with the Food Security Index 2023 showing substantial improvements.

Digital Transformation and Technology Integration

• Implementation of end-to-end computerization of TPDS operations through:
  • Integration of Aadhaar-enabled Public Distribution System (AePDS) for biometric authentication.
  • Installation of electronic Point of Sale (e-PoS) devices at Fair Price Shops (FPS).
  • Development of transparency portals for real-time monitoring of food grain movement.

Policy Reforms and Coverage Enhancement

• Extension of Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for five years from January 2024, benefiting 81.35 crore NFSA beneficiaries with an investment of ₹11.80 lakh crore.
• Successful implementation of One Nation One Ration Card (ONORC) across all 36 states/UTs, facilitating:
  • Seamless portability of benefits.
  • 158.8 crore portability transactions recorded since inception.
  • Enhanced accessibility for migrant workers.

Efficiency Improvements and Leakage Reduction

• Significant reduction in leakage rates between 2004-2023:
  • Increase in household coverage from 22.4% (2004-05) to 44.5% (2011-12).
  • Further expansion to 74% household coverage post-NFSA implementation in 2016.
• Integration of blockchain technology for:
  • Enhanced supply chain transparency.
  • Real-time tracking of food grain movement.
  • Reduction in fraudulent transactions.

Monitoring and Accountability Measures

• Establishment of State Food Commissions for grievance redressal.
• Implementation of GPS tracking for food grain transportation.
• Regular social audits and community monitoring systems.
• Creation of vigilance committees at various administrative levels.

The transformative journey of India's food grain distribution system demonstrates the power of digital innovation and policy reforms. With initiatives like PMGKAY and ONORC, coupled with technological integration, the system is better equipped to serve the vulnerable sections while ensuring transparency and efficiency.