Indian Economy·Policy Reforms

Food Security and PDS — Policy Reforms

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Version 1Updated 7 Mar 2026
EntryYearDescriptionImpact
Policy Shift (not a formal amendment to NFSA)2015-2016 onwardsIntroduction of Direct Benefit Transfer (DBT) in PDS on a pilot basis in some Union Territories and states. This involved transferring the food subsidy directly to beneficiaries' bank accounts, allowing them to purchase food grains from the open market. The aim was to reduce leakages and empower beneficiaries.While not universally adopted for food grains, DBT for kerosene and LPG subsidies has been more widespread. For food grains, it faced resistance due to concerns about price volatility, market access, and financial literacy among beneficiaries. It highlighted the complexities of replacing in-kind transfers with cash transfers in a large-scale food security program.
Policy Initiative (not a formal amendment to NFSA)2019 onwardsLaunch and phased implementation of the 'One Nation One Ration Card' (ONORC) scheme. This initiative allows NFSA beneficiaries to lift their entitled food grains from any Fair Price Shop (FPS) across the country using their existing ration card, after biometric authentication.Revolutionized portability of PDS benefits, particularly for migrant workers, ensuring their food security irrespective of their location. Significantly reduced exclusion errors for mobile populations and enhanced transparency through technology integration. It has been a major success in leveraging Aadhaar and ePoS devices for efficient delivery.
Policy Initiative (not a formal amendment to NFSA)2020 onwardsIntroduction and subsequent extensions of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) during and post the COVID-19 pandemic. This scheme provided additional free food grains (5 kg per person per month) to all NFSA beneficiaries.Served as a crucial safety net during economic distress, preventing widespread hunger and mitigating the impact of the pandemic on vulnerable populations. It significantly increased the food security coverage and demonstrated the government's capacity to scale up welfare measures rapidly. However, it also added to the food subsidy burden.
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