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Economics June 18, 2026 4 min read Daily brief · #19 of 23

Centre may issue nearly 3 crore more ration cards after states delete ineligible entries: Joshi

The Union Ministry of Food and Public Distribution announced that nearly 3 crore additional ration cards may be issued to eligible beneficiaries under the Na...


What Happened

  • The Union Ministry of Food and Public Distribution announced that nearly 3 crore additional ration cards may be issued to eligible beneficiaries under the National Food Security Act 2013, following the removal of 2.21 crore ineligible entries from state PDS rolls.
  • The Ministry had earlier identified 8.51 crore potentially ineligible beneficiaries — including deceased persons, income-tax payers, and four-wheeler owners — after cross-referencing PDS databases with other government records enabled by Aadhaar-linked digitisation.
  • States exercised their own criteria and discretion in deleting entries, removing 2.21 crore so far; the minister clarified that the Centre did not direct the deletions, emphasising that the state governments determined ineligibility using local administrative processes.
  • The announcement was made at the launch of a smart warehousing system — new technology infrastructure for PDS storage facilities — that includes smart depot capabilities designed to reduce pilferage, improve inventory tracking, and enhance last-mile accountability.
  • The current PDS system covers 79 crore beneficiaries, against a statutory ceiling of 80 crore under PM Garib Kalyan Anna Yojana (PMGKY), the current free foodgrain distribution programme.
  • 98.5% of PMGKY foodgrain distribution is now authenticated through Aadhaar-linked biometric verification at electronic Point of Sale (ePoS) machines, a significant reform milestone.

Static Topic Bridges

National Food Security Act 2013 (NFSA) and TPDS Architecture

The National Food Security Act 2013 provides a legal entitlement framework for subsidised food through the Targeted Public Distribution System (TPDS). The Act covers up to 75% of the rural population and 50% of the urban population — approximately 81.35 crore persons at the time of enactment. Entitled persons receive 5 kg of foodgrains per month per person at highly subsidised prices (rice at ₹3/kg, wheat at ₹2/kg, coarse cereals at ₹1/kg), with priority households and Antyodaya Anna Yojana (AAY) households receiving differential entitlements.

  • The NFSA places the responsibility for beneficiary identification and ration card issuance on state governments, within the national ceiling set by the Centre based on Census data.
  • PM Garib Kalyan Anna Yojana (PMGKY) extended free (zero-cost) foodgrain distribution beyond the subsidised NFSA rates; extended multiple times since its Covid-era launch and now integrated into NFSA entitlements.
  • Ineligibility criteria (exclusion criteria) are determined by states; the Centre provides broad guidance (income-tax payers, four-wheelers, etc.) but states have operational flexibility.

Connection to this news: The 3 crore new ration cards would be issued within the existing statutory ceiling created by the headroom freed up through deletion of ineligible entries — this is a reallocation of entitlement, not a new expenditure commitment, made possible by the NFSA's state-level identification framework.

PDS Digitisation and Aadhaar De-Duplication

The reform of India's PDS over the last decade has centred on three interventions: digitisation of ration cards into a national database, Aadhaar seeding to eliminate duplicate and ghost beneficiaries, and installation of ePoS machines at fair price shops for biometric authentication at the point of delivery. These reforms are part of the Direct Benefit Transfer (DBT) ecosystem and were accelerated under the One Nation One Ration Card (ONORC) programme, which allows portability of PDS entitlements across states.

  • ONORC (2020) enables migrant workers and mobile populations to access their ration entitlement at any fair price shop in India, using Aadhaar biometrics.
  • ePoS machines have dramatically reduced leakage — ghost and duplicate beneficiaries could no longer draw rations without biometric authentication.
  • Cross-referencing of PDS rolls with income-tax returns, vehicle registration records, and other databases is made possible by Aadhaar as a common identifier.

Connection to this news: The 2.21 crore ineligible deletions were enabled precisely by the digitisation and Aadhaar seeding reforms — the same technology infrastructure that now enables near-complete authentication (98.5%) is what identified who should not be on the rolls.

Smart Warehousing and PDS Supply Chain Modernisation

The grain management infrastructure under the PDS is operated by the Food Corporation of India (FCI) for central buffer stocks and by State Warehousing Corporations and other agencies for state-level storage and distribution. Warehousing inefficiencies — including pilferage, quality deterioration (especially of wheat and rice in the open), and lack of real-time inventory visibility — have been persistent problems. Smart warehousing involves IoT-based monitoring (temperature, humidity, stock levels), automated inventory management, and integrated logistics systems to reduce post-procurement losses and improve distribution efficiency.

  • India's food subsidy bill is one of the largest in the national budget; warehouse modernisation is a cost-efficiency as well as food safety imperative.
  • Smart depot technology aims to bring transparency to state-level FPS (Fair Price Shop) operations, complementing the ePoS authentication at the consumer end.
  • The Warehousing Development and Regulatory Authority (WDRA) regulates warehousing operations and issues negotiable warehouse receipts.

Connection to this news: The smart warehousing launch concurrent with the ration card announcement signals a broader PDS reform agenda — tightening the beneficiary rolls on the demand side while modernising the supply chain on the distribution side.

Key Facts & Data

  • Ration cards to be potentially issued: approximately 3 crore additional.
  • Ineligible entries removed by states: 2.21 crore.
  • Total ineligible beneficiaries identified by Ministry: 8.51 crore (states have removed 2.21 crore so far).
  • Current PDS coverage: 79 crore beneficiaries.
  • PMGKY ceiling: 80 crore beneficiaries.
  • Aadhaar-authenticated foodgrain distribution under PMGKY: 98.5%.
  • Persons cited as exiting multidimensional poverty since Covid (per international fora): approximately 25 crore.
  • Ineligibility criteria used: deceased persons, income-tax payers, four-wheeler owners.
  • Entitlement under NFSA: 5 kg/person/month.
  • NFSA coverage mandate: up to 75% rural, 50% urban population.
On this page
  1. What Happened
  2. Static Topic Bridges
  3. National Food Security Act 2013 (NFSA) and TPDS Architecture
  4. PDS Digitisation and Aadhaar De-Duplication
  5. Smart Warehousing and PDS Supply Chain Modernisation
  6. Key Facts & Data
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