30 March 2023

Table of Content

SMART PDS scheme: A bold initiative in digitisation

GS-3: Public Distribution System - Objectives, Functioning, Limitations, Revamping; Issues of Buffer Stocks and Food Security 

The Targeted Public Distribution System (TPDS), which provides food security to 81.35 crore individuals monthly, is governed by the National Food Security Act, 2013 (NFSA), the country's most significant beneficiary-oriented program.

The Scheme for Modernisation and Reforms through Technology in Public Distribution System (SMART-PDS) is implemented with an aim of reducing food grain leakages, improving distribution chain efficiency, and ensuring the availability of provisions for migrants. With the implementation of the Scheme, states and UTs are generating and storing significant amounts of data daily. The use of data analytics to analyze the TPDS ecosystem is enabling the generation of crucial information on beneficiaries, their food security requirements, and migration patterns.

The SMART-PDS Scheme

• The SMART-PDS is an initiative of the Department of Food and Public Distribution (DFPD) in digitization to modernize digitize the Public Distribution System (PDS) in India.
• Aim: To the entire PDS system, from procurement to distribution, to reduce leakages and corruption.
• It uses technology like electronic point of sale (ePoS) machines, biometric authentication, and GPS-enabled vehicles to track and monitor the movement of food grains and ensure they reach the intended beneficiaries.
• The system provides real-time information on demand and supply, enabling better management of food grains and reducing wastage.

Current Scenario

• The SMART-PDS scheme has been implemented in several states, including Andhra Pradesh, Telangana, and Karnataka.
• According to the government, the scheme has led to a reduction in leakages and better targeting of beneficiaries.
• However, there have been challenges in implementing the scheme, including issues with connectivity and power supply in remote areas and the need for better training of personnel.

Challenges faced by current PDS System

• The current PDS system is susceptible to leakages and corruption, resulting in food grain reaching only a few beneficiaries.
• The system relies heavily on manual processes, making it challenging to track and monitor the movement of food grains and detect malpractices.
• There is a lack of real-time information on the demand and supply of food grains and the number of beneficiaries, leading to a mismatch between demand and supply.

Integrated Management of Public Distribution System (IM-PDS) Scheme and One Nation One Ration Card (ONORC) Implementation

• In order to sustain the improvements brought about by the End-to-end Computerisation of TPDS Operations scheme and address the aforementioned challenges, the government has introduced the Integrated Management of Public Distribution System (IM-PDS) Central Sector Scheme.

Objectives

• Implement One Nation One Ration Card for nationwide portability

• The One Nation One Ration Card plan is presently operational in all 36 States/UTs and is steadily increasing its monthly portable transaction count, which currently stands at over 3.5 crore.

• Establish a national-level data repository for deduplication of beneficiary and ration card data
• Integrate data infrastructure and systems across ration card management, and automating the allocation, supply chain of food grains, and FPS.

Benefits of SMART-PDS

• SMART-PDS ensures that food grain reaches the intended beneficiaries, reducing leakages and corruption.
• The digitization of the system provides transparency, making it easier to track and monitor the movement of food grains.
• The real-time information on demand and supply enables better management of food grains and reduces wastage, resulting in cost savings.
• The SMART-PDS scheme has potential to promote financial inclusion. 

• By digitizing the PDS system, the government can link it with bank accounts and promote the use of digital payment methods, which can help beneficiaries and access financial services improve their financial literacy. 
• The scheme can also provide data on the spending patterns of beneficiaries, which can help financial institutions develop tailored financial products for them.

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