Govt approves ₹25,530 crore plan for last mile supply of foodgrains, streamline PDS system

New Delhi: Cabinet approved a ₹On Wednesday, it overhauled its public food distribution network worth Rs 25,530 crore, merging two existing subsidy programs into a single technology-based system to feed more than 81.35 million beneficiaries more efficiently and with less waste.

The five-year plan, starting in fiscal year 2027, will bring government transport subsidies and fair trade commissions under a single program called Sarthak-PDS, while introducing artificial intelligence, blockchain and machine learning tools to monitor supply chains. The government expects savings from the rationalization of food grain transport routes ₹280 crore annually, Minister Ashwini Vaishnaw told reporters after the decision of the Cabinet Committee on Economic Affairs (CCEA).

Digital push

The announcement shows Prime Minister Narendra Modi’s drive to digitize welfare delivery, building on decades of reforms that have linked ration cards to the Aadhaar database and automated fair-price shops in all 36 states and Union territories.

Vaishnaw told reporters that the new integrated scheme seeks to create a unified citizen-centric architecture (PDS) by deploying technologies such as Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing (NLP) and Blockchain for real-time monitoring, grievance redressal, analytics and supply chain oversight.

Sarthak-PDS will support the food security framework for beneficiaries covered by the National Food Security Act by ensuring last-mile food supply, reducing leakages and improving transparency in the system, an official statement by the Prime Minister Narendra Modi-led CCEA said.

Standardized architecture

The scheme also proposes a standardized digital architecture, unified databases, state-level command and control centers and ISO-certified operational frameworks aimed at improving the security, transparency and sustainability of PDS operations across the country.

The integrated scheme builds on the digitization reforms implemented in the last decade, including the full electrification of the Targeted Public Distribution System (TPDS), Integrated Management of PDS (IM-PDS) and SMART PDS initiatives.

From April 2023, the SMART PDS program enables digitization of ration cards, Aadhaar seeding and automation of trade at fair prices through e-PoS facilities, online allocation systems and computerized supply chain management in all 36 states and Union Territories.

Officials said the integration of the programs under a single umbrella program should streamline implementation, improve operational efficiency and provide a more technology-driven mechanism for delivery of subsidized food grains. The proposed changes are also expected to reduce carbon emissions by making the transportation of food grains more efficient.