Year-End- Review of Department of Food and Public Distribution– 2024

Following are the major highlights of the activities of the Department of Food & Public Distribution during the year 2024:

Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY):

The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) was launched with the specific purpose of ameliorating the hardships faced by the poor and needy due to economic disruptions caused by the COVID-19 outbreak in the country. Given COVID crisis, the allocation of free food grains, under PMGKAY was in addition to regular allocation done. A total quantity of approx. 1118 LMT food grains had been allocated under PMGKAY (Phase I-VII) for 28 months with a total planned financial outlay was about 3.91 lakh crore.

The Central Government, in order to remove the financial burden of the poor beneficiaries and to ensure nationwide uniformity and effective implementation of the Act, had decided to provide food grains free of cost to NFSA beneficiaries i.e. AAY households and PHH beneficiaries, for a period of one year beginning from 1st January 2023 under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). Prior to that, under NFSA, subsidized food grains were distributed at Rs 3 per kg for rice, Rs 2 per kg for wheat and at Rs 1 per kg for coarse grains to beneficiaries. The period for distribution for free of cost food grains under the PMGKAY has been extended for five years w.e.f. 1st January, 2024.

The PMGKAY Scheme would ensure effective and uniform implementation of National Food Security Act (NFSA). Under the One Nation One Ration Card (ONORC), which is a successful initiative of portability of ration card, any beneficiary can take delivery of food grains from any FPS at uniform NFSA entitlement and price across the country. The free food grains will concurrently ensure uniform implementation of portability under One Nation One Ration Card (ONORC) across the country and will further strengthen this choice-based platform.

At present, against the intended coverage of 81.35 crore persons, 80.67 crore persons are receiving food grains free of cost.

Annual Allocation of Food grains for 2023-24 under TPDS/OWS and Additional allocation (Flood, festival etc):

The Department of Food & PD makes allocation of food grains under NFSA {Antyodaya Anna Yojana (AAY), Priority Household (PHH), Tide Over, PM Poshan Scheme, Wheat Based Nutrition Programme [a component of Umbrella ICDS]} and Other Welfare Schemes such as, Scheme for Adolescent Girls, Annapurna Scheme and Welfare Institutions & Hostels Scheme (WIH). The Scheme-wise allocation for the year 2024-25 is as follows:

 

					In lakh tons
	Name of Scheme	Rice	Wheat	Nutri-cereals	Total
A	TPDS (NFSA ALLOCATION)
	Antyoday Anna Yojana (AAY)	69.80	29.68	0.00	99.48
	Priority Household (PHH)	273.20	149.73	6.42	429.35
	TPDS (Tide Over)	21.19	5.04	0.00	26.23
	PM POSHAN (MDM)	19.21	3.76	0.00	22.96
	WBNP (ICDS)	13.89	11.74	0.16	25.78
	Total	397.28	199.95	6.57	603.80
B	OTHER WELFARE SCHEMES
	Hostels and Welfare institutions	3.24	0.87	0.00	4.10
	Scheme for adolescent Girls (SAG)	0.334	0.343	0.0038	0.68
	Annapurna	0.00	0.00	0.00	0.00
	Total	3.57	1.21	0.00	4.78
C	ADDITIONAL ALLOCATION (Festival, calamity, additional TPDS etc.)
	Natural Calamity etc (MSP Rates)	0.06	0.07	0.00	0.13
	Festival/Additional Requirement etc (Economic Cost)	0.96	0.60	0.00	1.56
	Total	1.02	0.67	0.00	1.69
A+B+C	Grand total	401.88	201.83	6.57	610.28

 

Hon’ble PM’s announcement on Rice Fortification

Hon’ble PM of India in his address on the 75th Independence Day (15th August, 2021) made an announcement providing nutrition by supplying of fortified rice throughout the government schemes. Pursuant to the announcement, the Government of India in order to achieve uniform nutritional impact of fortified rice among the targeted population is supplying fortified rice throughout the Targeted Public Distribution System (TPDS), Pradhan Mantri Poshan Shakti Nirman (PM POSHAN) Scheme, and Integrated Child Development Services (ICDS) Scheme and in Other Welfare Schemes (OWS) in all States and Union Territories (UTs). The initiative aims to provide fortified rice enriched with essential micronutrients such as iron, folic acid, and vitamin B12, adhering to the standards set by the Food Safety and Standards Authority of India (FSSAI). The initiative was scaled up in three phases – Phase I (2021-22) covering ICDS & PM-POSHAN, Phase II (2022-23) covering ICDS, PM-POSHAN and 291 Aspirational & High Burden districts under TPDS and Phase III (2023-24) covering ICDS, PM POSHAN and all districts under TPDS.

The initiative to supply fortified rice has been successfully implemented by March, 2024, achieving 100% lifting. Custom-milled rice has been replaced with fortified rice in every scheme of the Government. Initially funded by the Government of India as part of food subsidy until June 30, 2024, the initiative was reviewed for further continuation and future cost-sharing. The Cabinet during a meeting held on 9^th October, 2024 has approved to continue the supply of fortified rice under the Pradhan Mantri Garib Kalyan Yojana (PMGKAY) and Other Welfare Schemes from July 2024 and upto December 2028. This initiative will continue as a Central Sector Initiative, fully funded by the Government under the existing PMGKAY framework, utilizing the previously approved allocation of Rs. 11,79,859 crore for the PMGKAY scheme.

Targeted Public Distribution System (TPDS) reforms

100% digitized ration cards/beneficiaries’ data under NFSA in all States/UTs. Details of almost 20.54 Crore ration Cards covering around 80 Crore beneficiaries are available on transparency portals of States/UTs.

More than 99.8% Aadhaar seeding of ration cards (at least one member).

About 99.8% (5.41 Lakh of total 5.43 Lakh) Fair Price Shops (FPSs) in the country are automated using electronic Point of Sale (ePoS) devices for transparent and ensured distribution of subsidized food grains to beneficiaries.

Under distribution of food grains, more than 97% of the transactions have been recorded biometrically/Aadhaar authenticated by States/UTs.

Progress of One Nation One Ration Card plan

Starting with inter-State portability in just 4 States in August 2019, so far, the ONORC plan has been enabled in all 36 States/UTs (across the country) covering around 80 Crore NFSA beneficiaries, i.e., almost 100% NFSA population in the country.

Since inception of ONORC plan in August 2019, more than 158.8 Crore portability transactions have been recorded under the ONORC plan in the country delivering more than 315.8 LMT food grains, which includes both inter-State and intra-State transactions.

During year 2024, about 30 crore portability transactions were performed in 11 months of 2024 delivering around 66 LMT food grains including inter-state and intra-state portability transactions of NFSA and PMGKAY. Presently, more than 2.5 crore portability transactions are being recorded every month under PMGKAY foodgrain distribution.

Movement of food grains

During 2024 (from January, 2024 to Oct, 2024), 204 containerized rakes moved with approx. freight savings of Rs. 4.40 crore.

FCI is also undertaking multi-modal transportation of rice involving coastal shipping and road movement from designated depots of Andhra Pradesh to designated depots in Kerala and A&N and Karnataka to Lakshadweep. During 2024 (i.e. from January, 2024 to Oct, 2024) 0.39 LMTs Food grains stock were moved based on cost economics in comparison to the conventional mode of transportation.

Further, FCI has moved total 10205 rakes of food grains with approximate quantity of 358.93 LMT have been loaded from January, 2024 to Oct, 2024, to meet the requirement of NFSA.

Support to Farmers

Procurement Operation: The main objectives of food management are procurement of food grains from farmers at remunerative prices, distribution of food grains to consumers, particularly the vulnerable sections of society at affordable prices and maintenance of buffer stock for food security and price stability. The Central Government extends price support to paddy, coarse grains and wheat through the FCI and State Agencies. All the food grains (wheat and paddy) conforming to the prescribed specifications offered for sale at specified centres are bought by the public procurement agencies at the Minimum Support Price (MSP) inclusive of bonus announced, if any. The farmers have the option to sell their produce to FCI/State Agencies at MSP or in the open market as is advantageous to them.

During RMS 2024-25, a quantity of 266.05 LMT of wheat was procured through which 2248725 number of farmers were benefited.

During KMS 2023-24, a quantity of 782.29 LMT of paddy has been procured through which 10657828 number of farmers were benefited. During ongoing KMS 2024-25, 283.17 LMT of paddy has been procured and 2014007 number of farmers have been benefited till 01.12.2024.

Procurement of Coarse Grains/ Millets

The total Coarse grain procurement carried out during KMS 2023-24 is 12.55 LMT which is 170% as compared to procured during KMS 2022-23. This is the highest coarse grains procurement in last 10 years.

The procurement of coarse grains/millets during the last two years and estimated procurement for current year is as under:

Fig in Metric Tons

KMS	COMMODITY	Total
2022-23	JOWAR	85197
	BAJRA	182005
	MAIZE	13122
	RAGI	456745
	TOTAL	737069
2023-24	JOWAR	323163
	BAJRA	696457
	MAIZE	4532
	RAGI	230920
	TOTAL	1255073
2024-25*	JOWAR	196000
	BAJRA	713000
	MAIZE	160000
	RAGI	830500
	MINOR MILLETS(FOXTAIL)	3000
	TOTAL	1902500

* Estimated Procurement quantity as per request received from States/UTs.

Foodgrain packaging Material

In view of the capacity of production by Jute mills and requirement by States/FCI, this Department has allocated 17.53 lakh jute bales in KMS 2024-25, and 15.67 lakh jute bales in RMS 2024-25/ KMS 2023-24 (Rabi crop) to State Procuring Agencies and FCI. As sufficient jute bags were available, no permission for use of HDPE/PP bags was given to States/FCI in last two seasons.

Imposition of Wheat Stock Limit

In order to manage the overall food security and to prevent hoarding and unscrupulous speculation, the Government of India has imposed wheat stock limits on 24 June 2024 which is later revised on 09.09.2024 & 11.12.2024 and is applicable until 31st March 2025 for all States and Union Territories as under:

Entities	Wheat Stock Limit
Traders / Wholesalers	1000 MT
Retailers	5 MT for each Retail outlet.
Big Chain Retailers	5 MT for each outlet subject to maximum quantity of (5 multiplied by total number of outlets) MT stock at all their outlets & depots put together.
Processors	50% of Monthly Installed Capacity (MIC) multiplied by remaining months till April 2025.

 

The revised stock limits are applicable after 15 days from date of notification (i.e 11.12.2024).

The total number of entities registered on wheat stock portal is 25,017 and 68 LMT stock of wheat has been declared on wheat stock portal (as on 11.12.2024)

Food Subsidy

Government of India/Ministry of Finance does not allocate State-wise funds under PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana), rather funds towards food subsidy are released to FCI (Food Corporation of India) and States that have adopted Decentralized Procurement based on the distribution of food grains to the targeted beneficiaries. The details of food subsidy released to FCI and DCP States in previous and current financial year is Rs. 2,11,394.39 Crore and Rs. 1,40,239.10 Crore (till October, 2024) respectively. Further, the details of subsidy released to DCP States is below.

State-wise breakup of food subsidy released to DCP States is as under:

(Rs. in Crore)

Note:-

@ Jharkhand was DCP for KMS 2016-17 (only for 1 district) 2017-18 (only for 5 District), 2018-19 (only for 6 District). They have adopted Non-DCP in KMS 2019-20. Adopted DCP in FY 2023-24

$ Himachal Pradesh has adopted DCP Mode in 2023-24

*Under DBT scheme, subsidy is released to UTs of Chandigarh, Puducherry and Dadra & Nagar Haveli w.e.f. 2015-16.

Achievements are highlighted as under:

1. New SoP (Standard Operating Procedure) for settlement/finalization of food subsidy accounts of States: The SoP (Standard Operating Procedure) has been issued with aim to standardize the procedure on release of food subsidy and ensure that stakeholders can settle/finalize their accounts in timely and efficient manner. The SoP establishes consistency in the processes, computation methodologies and timelines for the account settlement process.
2. SCAN – Subsidy Claim Application for NFSA & OWS: SCAN simplifies and accelerates the processing of State’s proposals with its six powerful sub-modules including—SCAN ICS, SCAN-DCP, SCAN FCI, SCAN-NFS, SCAN-DBT and SCAN FCS. Together, these modules create a seamless and unified platform for managing Economic Cost, Food subsidy bills, Direct fund transfer to beneficiaries, Claims under central assistance and Final settlement of State’s accounts. SCAN embodies the spirit of Digital India, delivering on the promise of efficiency, transparency and empowerment.

 

Open Market Sale Scheme (Domestic) [OMSS(D)]

Bharat Atta and Bharat Rice were launched on 06.11.2023 and 06.02.2024 respectively under Open Market Sale Scheme (Domestic) [OMSS(D)] to make available atta (wheat flour) and rice to general consumers at subsidized rates. Bharat Atta and Bharat Rice is being sold through three central cooperative organizations viz. National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), Kendriya Bhandar and National Cooperative Consumers’ Federation of India Limited (NCCF).

During Phase-I upto 30.06.2024, Bharat Atta and Bharat rice were sold at a maximum retail price (MRP) of Rs.27.50/kg and Rs.29/kg, respectively. During Phase II, Bharat Atta and Bharat rice are now being sold at MRP of Rs. 30/kg and Rs. 34/kg, respectively by three central cooperative organizations through their own stores, mobile vans, E-commerce platforms and big chain retailers. During Phase- I of Bharat Brand sales, 15.20 LMT of Bharat Atta and 14.58 LMT of Bharat Rice was sold. A quantity of 3.71 LMT wheat for sale of Bharat Atta and 2.91 LMT rice for sale of Bharat Rice has been allocated, at present for sale during Phase II of Bharat Brand.

Besides, 10 LMT of rice has been allocated on 11.07.2024 for sale under OMSS(D) to private parties through e-auction and State Governments without e-auction. As on 25.11.2024, 7.59 LMT of rice has been sold by FCI under the category. 25 LMT of wheat has been allocated on 28.11.2024 for sale under OMSS(D) to private parties through e-auction.

Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF)

The Credit Guarantee Scheme for e-NWR based Pledge Financing (CGS-NPF) has been approved with corpus of Rs. 1000 crore. This scheme is a Central Sectors Scheme to be implemented by Department of Food and Public Distribution (DFPD) from 2024-25 till end of 16^th Finance Commission cycle i.e. till 2030-31. The Credit guarantee scheme is for pledge financing availed of by farmers against electronic negotiable warehouse receipts (e-NWRs) after depositing commodities in accredited warehouses.

The credit guarantee scheme will help in increasing post-harvest lending against e-NWRs and thereby play a role in improving farmers’ income. Credit Guarantee Scheme will instill confidence among lenders and improve trust on warehouseman to increase post-harvest finance through e- NWRs.

This scheme majorly focuses on Small and Marginal Farmers, Women, SC, ST and Divyangjan (PwD) farmers with a minimal guarantee fee. Besides, small traders (MSMEs) are also benefited under this scheme. This scheme covers the pledge loans extended on the e-NWRs issued against agricultural and horticultural commodities. Scheme covers the loss incurred by the bank due to credit and warehouse man risk.

Other non-measurable macro-economic outcomes include upgradation and standardization of warehousing, reduction in post-harvest losses, scientific storage of agri commodities, improvement in liquidity in rural areas, equitable growth of warehousing sector and improvement in commodity trading.

Implementation of Route Optimization in PDS supply chain

Route optimization is a strategic approach to enhance the efficiency and cost-effectiveness of PDS supply chain in India. In the context of the Public Distribution System (PDS), it involves utilizing optimisation algorithm developed by IIT-Delhi to define optimal routes and warehouse-to-warehouse and further to FPS (Fair Price Shop) mappings, which ensures the reduction of transportation costs and improved operational efficiency, thereby enabling timely delivery of food grains to beneficiaries.

The Optimisation exercise involved selecting the most efficient motorable routes for transporting food grains, thereby saving time and reducing costs using Operations Research. This exercise, marks a transformative step towards building a more efficient and cost-effective food supply chain.

With the completion of one year into the optimisation exercise, route optimisation assessments have been completed in 30 states. Results show tremendous promise, with transportation costs is estimated to be reduced by around Rs 250 crore per year. Till now Rs 128 Crores saving has been reported by 12 states. The interstate route optimisation of movement of food grains from the surplus to deficit states have also been completed by integration with Freight Operating Information System (FOIS) of Railway Department.

By choosing the optimal option, states reduced transport distances ranging from around 15- 50% percent.

This exercise will limit the human interventions which adversely impact the operational efficiency, additional logistics cost and pilferage in PDS Supply chain.

This initiative is not only an economic win but also an environmental one. Global food miles- representing the distance food travels from production to consumption- account for nearly one-fifth of total food system emissions. Optimising India’s food distribution routes can contribute significantly to reducing CO2 emissions, aligning with the country’s climate change commitments under the Paris Agreement and its Conference of Parties (COP) targets. The reduction in fuel consumption will also help conserve foreign exchange reserves. This step would not only strengthen India’s commitment to a climate-smart supply chain but also potentially generate financial benefits.

Steel Silos

With a view to modernize and upgrade the storage infrastructure for food grains and to ramp-up the storage capacity in India, steel silos are being created in PPP.

As of now, Silos of total 23.25 LMT capacity are functional and 6.5 LMT are under construction. Now, Department of Food & Public Distribution creating capacity under Hub and Spoke Model Silos where “Hub” silos have a dedicated railway siding and container depot facility. While the transportation from “Spoke” Silos to Hub Silos is undertaken through road, transportation from Hub to Hub is via rail. Under this model, tenders have been awarded for construction of silos at 80 locations with 34.8 LMT capacity in phase-I.

Steel silos are traditionally suitable for Wheat storage. On a pilot basis, 12500 MT of steel silos for the storage of Rice have been constructed at Buxar Bihar and based on the results, more Rice silos will be created in future.

Sugar Sector

The Indian sugar industry is an important agro-based industry that impacts rural livelihoods of about 5 crore sugarcane farmers & their families and around 5 lakh workers directly employed in the sugar factories. Employment is also generated in various activities relating to transport, trade servicing of machinery and supply of agriculture inputs. India is the second largest producer and the largest consumer of sugar in the world. Today, Indian sugar industry’s annual output is more than ₹1.3 lakh crore

There were 535 operational sugar factories in the country in sugar season 2023-24. Average annual production of sugarcane is now increased to about 5000 Lakh Metric Tonnes (LMT) which is inter-alia used to produce around 320 LMT of sugar after diverting about 24 LMT sugar for ethanol production in Sugar Season 2023-24.

As a result of pro-farmers measures taken by the Govt., about 99.9% of cane dues of previous sugar seasons have been cleared. For the sugar season 2023-24, against cane dues payable of Rs. 1,11,627 crores, about Rs. 1,09,744 crores have been paid & only Rs. 1,883 crore dues are to be paid. Thus, more than 98% cane dues have been paid to farmers resulting in lowest cane arrears pending.

Ethanol Blending Petrol Programme

Ethanol is an agro-based product which is used for blending with petrol as fuel and many other industrial uses including manufacturing hand sanitizers. It is produced from a by-product of the sugar industry, namely molasses as well as starchy food grains. In years of surplus production of sugarcane, when prices are depressed, the sugar industry is unable to make timely payment of cane price to farmers and to find a permanent solution to address the problem of excess sugar and improve the liquidity of sugar mills by helping them to clear their cane dues on time, Government is encouraging sugar mills to divert excess sugarcane to ethanol. Government of India has been implementing Ethanol Blended Petrol (EBP) Programme throughout the country wherein Oil Marketing Companies (OMCs) sell blended petrol. Under EBP Programme, Government has fixed the target of 20% blending of ethanol with petrol by 2025.

Till year 2014, ethanol distillation capacity of molasses-based distilleries was less than 200 crore litres. Supply of ethanol to OMCs was only 38 crore litres with blending levels of only 1.53 % in ethanol supply year (ESY) 2013-14. However, in past 10 years due to the policy changes made by the Government, the capacity of molasses-based distilleries and grain-based distilleries have increased to 941 crore litres and 744 crore litres respectively.

During Ethanol Supply Year (Nov-Oct) 2023-24, 14.6% blending has been successfully achieved. Existing capacity of ethanol production in the country (as on 30.11.2024) has increased to 1685 crore litres (744 crore litres of grain based and 941 crore litres of molasses-based distilleries). Successful implementation of Ethanol Blended with Petrol (EBP) Programme has led to multiple benefits in various aspects:

• Sale of ethanol has resulted in better cash flows for sugar mills resulting in prompt payment to cane farmers. In last 10 years (2014-15 to 2023-24), sugar mills have earned revenue of more than ₹ 1 lakh crores from sale of ethanol which has improved the financial condition of sugar mills.
• Government of India is committed to meet its goals regarding reduction of emissions of Green House Gases (GHGs). Use of ethanol blended petrol reduced emission of Carbon Mono Oxide and other hydrocarbons. In-fact, increasing use of ethanol in transportation will switch Indian transportation sector to be greener and environment friendly.
• As a result of this effective government policy, investment opportunities worth over ₹ 40,000/- crore emerged, leading to the establishment of new distilleries in rural areas and contributing to direct and indirect employment generation.

Digitization in Sugar Sector

To promote ease of doing business, bringing transparency and to facilitate sugar mills and integrated digitization of the whole system as well as to have all the relevant data of sugar mills and ethanol industry at one place, a dedicated module has been developed on National Single Window System (NSWS). DFPD in collaboration with Invest India to automated various compliance of the sugar mills on NSWS portal. Also, the monthly information has also been digitalized and about 535 sugar mills are filing the same on monthly basis. Further, to ensure real-time data availability, improve data accuracy and to eliminate redundant data & manual intervention, the process for sharing the monthly data in digitalized form through Application Programming Interfaces (APIs) on National Single Window System (NSWS) has been initiated.