No more trips to ration shops? Smart PDS to bring subsidised food to supermarkets

THIRUVANANTHAPURAM: Ration commodities will soon be available for purchase from supermarkets as part of the Central government's Smart PDS project. The facility will initially be available to beneficiaries holding subsidised ration cards.

As part of the major overhaul, the existing e-POS machines will be completely replaced, with a mobile application introduced instead.

Smart PDS will come into effect in April. In its second phase, beneficiaries will be able to purchase ration commodities from outlets outside the existing ration-shop network.

Under the new system, shops that enter into an agreement with the government will receive foodgrains directly from Food Corporation of India (FCI) godowns. The ration app will also be provided to participating retail outlets. The Central government will credit the subsidy amount to the accounts of the participating traders.

If the State government agrees, other subsidised commodities available through Supplyco could also be sold at private shops. In effect, the Smart PDS reforms would erode the relevance of traditional ration shops, putting ration dealers in a difficult position.

e-Rupee wallet for yellow, pink cardholders

An e-wallet facility will also be introduced to ensure subsidies and free foodgrains for yellow and pink ration-card holders.

The Central government will provide yellow and pink cardholders with e-Rupee, the digital currency issued by the Reserve Bank of India, through an e-Rupee wallet. The money meant for ration subsidies or free foodgrains will reach the beneficiary's phone as e-Rupee tokens.

The tokens will correspond to the specified amount and commodity. They cannot be transferred and can be used only by the actual beneficiary.

In Kerala, ration purchases through the e-wallet will initially be implemented in Alappuzha and Thiruvananthapuram districts.

Benefits for beneficiaries

• Ration commodities can be purchased from supermarkets along with other provisions.
• Direct delivery from FCI will help ensure that the quality of foodgrains is not compromised.
• Since transactions will be carried out through the e-wallet, beneficiaries will not lose their subsidy benefits.

Corporates could gain a foothold

• Corporates could enter the ration distribution sector.
• Ration dealers could face substantial revenue losses.
• The State government's control over the sector could become merely nominal.

“If the Central government attempts to hand over ration distribution to corporate establishments as part of Smart PDS, we will strongly oppose it,” said Food Minister Anoop Jacob.