Department of Food and Public Distribution (DFPD) Policy Highlights: Strengthening Food Security and Resilience

Policy Update
Deepankshi Agnihotry

                                                   Source-dfpd logo

India, the largest democracy and now the most populous nation, stands tall with a population of 1.42 billion people. As the “Mother of Democracy,” India successfully feeds such a massive population, ranking 2nd in cereal production, including rice and wheat, and is the largest producer of pulses and various fruits and vegetables. But have you ever wondered how India manages this incredible feat? How does the government procure, distribute, store, and monitor such vast stocks of food grains, ensuring that they reach such a large and diverse population while upholding the rights to health, nutrition, and democratic principles?

This is all made possible through the efforts of the Ministry of Consumer Affairs, Food and Public Distribution, specifically the Department of Food and Public Distribution (DFPD). This government body plays a crucial role in ensuring that India’s food security is maintained and food is distributed equitably across the country.

The Department of Food and Public Distribution, under the Ministry of Consumer Affairs, Food, and Public Distribution, currently led by Union Cabinet Minister Shri Pralhad Joshi, traces its existence to the pre-independence era. Over the decades, the department has undergone significant transformations, evolving into its present structure with several subordinate and attached offices. The timeline below highlights the key milestones in the department’s journey, showcasing its historical evolution and current form.

The department works with the vision of ensuring food security for its citizens and its mission is to ensure procurement of foodgrains at Minimum Support Price (MSP) and their efficient storage. Its objective is to,

• implement the National Food Security Act of 2013, throughout the country
• undertake price support operations through efficient procurement of wheat, paddy/rice and coarse grains
•  strengthen the Targeted Public Distribution System
• Development, Promotion and Diversification of the Sugar Industry
• Development and Rejuvenation of Warehousing Sector

In order to fulfil its mandate of managing the food economy of the nation it sets to perform the following functions,

• Participating in international engagements like the International Wheat Council, World Food Council, and International Food Policy Research Institute.Also negotiating important treaties and agreements with them.
• Manages matters related to the Food Corporation of India (FCI) and Central Warehousing Corporation.
• Acquire or lease land for food grain storage as well as sugar.
• Ensuring efficient operation of the Public Distribution System (PDS).
• Regulating Interstate trade and commerce in food grains, including sugar.
• Managing the Essential Commodities Act, 1955, and Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act, 1980.
• Overseeing the sugar industry and various other associated products.
• Managing related bodies like the Directorate of Vanaspati, Vegetable Oils, and Fats.

For the smooth functioning of the Department of Food and Public Distribution, various schemes are implemented. Here’s a quick policy update on some key schemes-

1. The Targeted Public Distribution System (TPDS) 

 TPDS is a major policy instrument that aims at reducing poverty by providing heavily subsidised food grains to the population living below the poverty line(BPL). Introduced in June 1997, it replaced the earlier Public Distribution System with a more focused approach.

Key Objectives

• Ensure food security for poor and vulnerable groups.
• Provide minimum requirements for food grains (wheat and rice) at subsidized prices.
• Address hunger and malnutrition among the poorest sections of society.

How TPDS Works

• Central Government:
  • Responsible for procuring, storing, and allocating food grains.
  • Supplies food grains to states/UTs at subsidized rates.
• State/UT Governments:
  • Identify eligible beneficiaries (BPL and APL families).
  • Issue ration cards to beneficiaries.
  • Distribute food grains through Fair Price Shops (FPSs).
  • Supervise and monitor FPS operations.

Beneficiary Categories

Implementation Features

• Ration Shops:
  • Food grains and fuel are distributed through a wide network of FPSs.
• Procurement and Storage:
  • Managed by the Food Corporation of India (FCI) and the Commission of Agricultural Costs and Prices (CACP).
• Digitalization:
  • Initiatives like Online Storage Management (OSM) launched to improve efficiency.

Drawbacks of TPDS

1. Inclusion/Exclusion Errors
   • Despite automation and Aadhaar seeding, many eligible households are excluded from the National Food Security Act (NFSA) list.
   • Misclassification results in poor households being categorized as Above Poverty Line (APL), thereby denying them benefits.
2. Diversion and Leakages
   • Subsidized food grains are often diverted to the open market, reducing availability for intended beneficiaries.
3. Limited Awareness of ONORC Portability
   • Migrant workers and marginalized populations often lack awareness about the One Nation One Ration Card (ONORC) scheme.
   • Poor education and limited grievance redress mechanisms hinder effective access.
4. Supply Chain Inefficiencies
   • Delays in transportation, inadequate storage facilities, and outdated monitoring systems reduce the efficiency of food grain delivery.

Way Forward

1. Strengthen Monitoring of Fair Price Shops (FPS)
   • Conduct regular inspections to prevent the diversion of subsidized grains.
   • Implement graduated sanctions for FPS dealers failing to follow compliance protocols, such as maintaining daily ledgers and extending working hours.
2. Enhance Data Governance
   • Use advanced technologies (e.g., real-time dashboards) to ensure transparency and accountability.
   • Strengthen Aadhaar-linked transactions to mitigate duplication and fraud.
3. Inclusion Measures
   • Provide food coupons, direct cash transfers, or surplus food stocks to those excluded from TPDS.
   • Conduct periodic surveys to update the NFSA list and minimize targeting errors.
4. Community Kitchens
   • Partner with civil society organizations to set up community kitchens in underserved areas, ensuring food security for the excluded population.
5. Awareness and Education Programs
   • Roll out campaigns to educate citizens about ONORC portability and grievance redressal mechanisms.
   • Simplify access to social audits to build public trust and participation

2.National Food Security Act (NFSA), 2013

The right to food, enshrined under Article 21 of the Indian Constitution, took a transformative step forward with the enactment of the National Food Security Act (NFSA), 2013 on July 13, 2013. This legislation marked a paradigm shift in the approach to food security, transitioning from a welfare-based to a rights-based framework.

Under the Act, up to 75% of the rural population and 50% of the urban population are legally entitled to receive subsidized food grains through the Targeted Public Distribution System (TPDS). This means that approximately two-thirds of the population is covered, ensuring access to highly subsidized food grains for millions of households.

In a significant move towards women’s empowerment, the Act mandates that the eldest woman (aged 18 years or above) in a household be designated as the head of the household for the purpose of issuing ration cards. This provision not only strengthens women’s role in decision-making within families but also aligns with the broader goals of gender equality and inclusive development.

Key Provisions-

• Obligation to Provide Subsidized Food Grains:
  The government, through state authorities, identifies beneficiaries based on the economic status of households.
• Beneficiary Categories:

1.Antyodaya Anna Yojana (AAY):
Households under AAY receive 35 kg of food grains per month.

2. Priority Households (PHH):
Each member of PHH receives 5 kg of food grains monthly, including:

• Rice: ₹3/kg
• Wheat: ₹2/kg
• Coarse grains: ₹1/kg

• Nutritional Support:
  • Free meals and maternity benefits (₹6,000) for pregnant women and lactating mothers during pregnancy and six months postpartum.
  • Free meals for children up to 14 years under schemes like ICDS and Mid-Day Meal.
• Grievance Redressal Mechanism:
  At district and state levels to ensure accountability.
• Food Security Allowance:
  Compensation in case of non-supply of food grains.

 Additional Coverage Under NFSA

1. Integrated Child Development Services (ICDS) Scheme:
   • Provides free nutritious meals to pregnant women, lactating mothers, and children up to 6 years of age.
2. Mid-Day Meal Scheme:
   • Offers free nutritious meals to children aged 6–14 years.
3. Maternity Benefits:
   • ₹6,000 was  provided to pregnant women and lactating mothers as maternity assistance.

The Act ensures food security for vulnerable sections while integrating welfare schemes to promote health and nutrition for women and children.

Way Forward

1. Balanced revision to coverage

• Gradually reducing coverage in rural areas from 75%-60% and in urban areas from 50% to 40 % as recommended by NITI AAYOG(2021). Also ensure this revision does not impact vulnerable sections, thus creating a safety net for the poorest of the poor.

2. Beneficiary Update

• Update the beneficiary list according to the latest population census. This revision could potentially increase coverage from 81.35 crore to 89.52 crore, adding 8.17 crore new beneficiaries (according to 2020 population estimates).

3. DBT Expansion

• Encourage DBT expansion where possible in order to reduce leakages, reduce physical grain movement and improve dietary diversity and nutritional value through food fortification and encouraging the use of millets.

4. Proposals from Other Committees

• Shanta Kumar Committee: Suggested reducing national coverage to 40%, targeting only Below Poverty Line (BPL) families.
• Economic Survey (2020-21): Recommended to revise the Central Issue Prices (CIP) to reflect rising costs, which have remained unchanged since the NFSA’s inception.

The launch of the Shree Anna Scheme in 2023 is a positive step forward. However, further incentivization and research & development are essential, particularly for climate-resilient crops tailored to specific regional conditions. This will be especially crucial in areas with water scarcity, such as Punjab and Haryana, where the focus should shift towards reducing dependence on water-intensive crops.

3.Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)

To fulfil the Directive Principle of State Policy (DPSP) under Article 38, which emphasizes the welfare of the people, particularly in ensuring food security during crises, the government launched the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). This scheme was specifically designed to alleviate the hardships faced by the poor and needy due to the economic disruptions and food shortages caused by the COVID-19 pandemic. Initially, PMGKAY aimed to provide free food grains in addition to the regular allocations, with approximately 1118 LMT (Lakh Metric Tonnes) of food grains allocated over 28 months in Phases I-VII, amounting to a total financial outlay of ₹3.91 lakh crore.

The scheme operates in coordination with the National Food Security Act (NFSA), with the support of the One Nation One Ration Card (ONORC) initiative. This system allows beneficiaries to access food grains from any ration shop across the country, ensuring portability and convenience.

The scheme, initially introduced as a temporary measure, has been extended for an additional five years, starting from January 1, 2024, ensuring its uniform and widespread implementation under the NFSA. Currently, the scheme is providing free food grains to 80.67 crore people, slightly below the intended coverage of 81.35 crore individuals. This initiative represents the government’s commitment to upholding food security as part of its constitutional responsibility, particularly in times of crisis.

4. Credit Guarantee Scheme for e-NWR Based Pledge Financing-

The Credit Guarantee Scheme for e-NWR Based Pledge Financing (CGS-NPF) is a significant initiative launched by the Union Minister of Consumer Affairs, Food and Public Distribution, Shri Pralhad Joshi, under the Department of Food and Public Distribution, in conjunction with the Ministry of New and Renewable Energy. This scheme, with a corpus of ₹1,000 crore, is designed to provide financial support to farmers and agricultural stakeholders. By facilitating post-harvest financing against electronic Negotiable Warehouse Receipts (e-NWRs) issued by Warehousing Development and Regulatory Authority (WDRA)-accredited warehouses, the initiative aims to:

• Reduce distress sales by ensuring liquidity post-harvest.
• Promote financial stability among farmers and stakeholders in the agricultural value chain.

Objectives

• Post-Harvest Finance: Enable farmers and traders to avail of loans by pledging their agricultural or horticultural produce stored in Warehousing Development and Regulatory Authority (WDRA)-accredited warehouses.
• Reducing Distress Sales: Provide farmers with liquidity after harvest to avoid forced sales at low market prices.
• Boosting Farmer Income: Increase post-harvest lending to ₹5.5 lakh crore over the next 10 years.
• Inclusivity: Major focus on small and marginal farmers (SMFs), women, SC, ST, and Divyangjan (PwD) farmers.

Impact and Implementation

• Strengthening Agricultural Finance
• Expanding Warehouse Development Authority(WDRA) reach-WDRA has been urged to accredit more warehouses, with a target of 40,000 registrations in the next 1-2 years
• Technology integration- The use of e-NWRs ensure transparency and efficiency, while platforms like e-Kisan Upaj Nidhi streamline lending processes for farmers.

Overall the scheme is very much in tandem with the Department of Food and Public Distribution’s mission of seamless procurement, storage, and distribution as well as quality monitoring and analysis.

The scheme supports Agriculture GVA as agriculture contributes 17.7% to India’s Gross Value Added (GVA) in FY 24. It also empower Aatmanirbhar Bharat, by ensuring financial stability for farmers, the scheme strengthens India’s vision of self-reliance. Furthermore, the schemes help reduce fertilizer costs as the government continues to provide urea at the lowest global prices, complementing initiatives like CGS-NPF to uplift farmers’ welfare.

5. Scheme for Modernization and Reform through Technology in Public Distribution System (SMART-PDS)-

Scheme for Modernization and Reform through Technology in Public Distribution System (SMART-PDS) is a transformative scheme launched by the Government of India to enhance the efficiency, transparency and accountability of TPDS. It was approved for implementation from 2023 to 2026 and officially launched on May 4, 2023.

The data generated under SMART-PDS extends benefits beyond food security enabling

• Tracking of nutrition through ICDS centres to PM Poshan with Aadhaar-linked records.
• Mapping of beneficiaries for targeted schemes by other ministries.
• Improved monitoring and implementation of central welfare programs.

These were the major schemes run by the Department of Food and Public Distribution. Other schemes that work in parallel and  help in seamless procurement, stocking  distribution are shown in the table below-

To implement and manage these schemes effectively, the Department of Food and Public Distribution (DFPD) relies on various implementing agencies, regulatory authorities, attached offices, and subordinate institutions under its purview. These entities work collaboratively to ensure seamless procurement, storage, distribution, and monitoring of food grains, as well as to promote transparency and efficiency in operations. Some of these agencies are mentioned as follows and their major functions are highlighted.

1. Implementation Agencies

• State Agencies: Various state food corporations and distribution bodies work closely with the DFPD for local-level execution of the Public Distribution System (PDS).

2. Subsidiary Agencies:

• National Agricultural Cooperative Marketing Federation of India (NAFED): Engaged in procurement at Minimum Support Prices (MSP) and distribution of essential food items.
• National Cooperative Development Corporation (NCDC): Promotes cooperative societies in food grain procurement, marketing, storage, and distribution.
• Indian Grain Storage Management and Research Institute (IGSMRI): Focuses on research, development, and training in food grain storage management to minimize losses.

3. Statutory Organizations:

• Food Safety and Standards Authority of India (FSSAI): Sets and regulates food safety standards to ensure the quality of food grains distributed through various schemes.
• Directorate General of Supplies and Disposals (DGS&D): Handles procurement and distribution of food grains for various government schemes and assists in maintaining smooth supply chains.

4. Attached Offices:

• Food Corporation of India (FCI): Acts as an attached office under the DFPD to directly manage the procurement, storage, and distribution of food grains.
• Central Warehousing Corporation (CWC): Functions as an attached office ensuring adequate storage capacity for the country’s food grains and essential commodities.
• Directorate General of Supplies and Disposals (DGS&D): An attached office responsible for overseeing procurement and distribution activities under DFPD schemes.

5. Subordinate Offices:

• National Cooperative Development Corporation (NCDC): An office that helps in promoting the growth of cooperatives involved in food grain marketing, storage, and distribution.
• Indian Grain Storage Management and Research Institute (IGSMRI): It helps in  providing training and research related to food grain storage, ensuring that grains remain safe and properly stored before distribution.
• National Agricultural Cooperative Marketing Federation of India (NAFED): This body helps in assisting the procurement and distribution of food grains at MSP, playing a key role in the market stability of food items.

Way forward

The new budget proposals bring additional hope and potential for advancing food security and improving public distribution systems in India, particularly through:

1. Community Kitchens Scheme: This initiative aims to provide free meals to the needy by establishing community kitchens across various states, ensuring that no one is left without access to food.
2. Warehouse Modernization for Scientific Storage and Preservation: With the modernization of food grain storage facilities, the focus is on adopting scientific methods for better preservation, improving storage efficiency, and reducing food wastage.
3. Climate-Resilient Food Distribution: Acknowledging the challenges posed by climate change, this initiative will introduce strategies to safeguard food supply chains, particularly in flood- and drought-prone areas, ensuring that food grains are distributed even during extreme weather events.
4. Green ATM Pilot Program: This innovative approach introduces automated food grain vending machines under the Public Distribution System (PDS), which will allow for 24/7 access to food grains and reduce leakages in the system, ensuring that food reaches those who need it most.
5. Green Logistics for Food Grains: The focus here is on eco-friendly transportation, using electric vehicles and rail networks, to reduce the carbon footprint of food grain distribution while ensuring that food is efficiently transported across the country.

The role of the Department of Food and Public Distribution (DFPD) is critical as India faces significant challenges, ranking 105th out of 127 countries in the Global Hunger Index highlighting a serious hunger crisis driven by persistent multidimensional poverty. Despite efforts, 22% of the population still lives below the poverty line and climate change exacerbates issues in food storage and distribution.

DFPD plays a vital role in achieving several Sustainable Development Goals (SDGs), including SDG 1 (No Poverty), SDG 2 (Zero Hunger), SDG 9 (Industry, Innovation, and Infrastructure), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action) through its wide initiative as discussed. These efforts are aligned with India’s vision for “Viksit Bharat 2047”, contributing to inclusive growth, poverty alleviation, and a resilient food system, ultimately guiding the nation towards becoming a developed, food-secure economy.

References

1. Press Information Bureau. (2023, February 15). Press release on food security. https://pib.gov.in/PressReleseDetailm.aspx?PRID=2086345&reg=3&lang=1
2. Press Information Bureau. (2023, February 13). Press release on food security initiatives. https://pib.gov.in/PressReleasePage.aspx?PRID=2085018
3. Press Information Bureau. (2023, February 18). Press release on NFSA and reforms. https://pib.gov.in/PressReleasePage.aspx?PRID=2086154
4. Press Information Bureau. (2022, November 24). Press release on NFSA and enhancements. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1990696
5. National Food Security Act. (n.d.). NFSA Portal. https://nfsa.gov.in/portal/nfsa-act
6. Department of Food and Public Distribution. (n.d.). National Food Security Act, 2013. https://dfpd.gov.in/WriteReadData/Other/nfsa_1.pdf
7. Department of Food and Public Distribution. (n.d.). Food grains scheme and technological limitations. https://dfpd.gov.in/Home/ContentManagement?Url=foodgrains.html&ManuId=3&language=1
8. National Portal of India. (n.d.). Department of Food and Public Distribution. https://www.india.gov.in/official-website-department-food-and-public-distribution
9. Maharashtra Food and Civil Supplies. (n.d.). Smart PDS. https://mahafood.gov.in/scheme-for-modernization-and-reform-through-technology-in-public-distribution-system-smart-pds/
10. Prepp. (n.d.). Targeted Public Distribution System (TPDS). https://prepp.in/news/e-492-targeted-public-distribution-system-tpds-agriculture-notes
11. Insights on India. (n.d.). Targeted Public Distribution System (TPDS). https://www.insightsonindia.com/agriculture/public-distribution-system/functioning-fair-price-shops-fci-ration-cards-aadhar-linking-etc/targeted-public-distribution-system/
12. Drishti IAS. (2021, December 3). Revising NFSA 2013: NITI Aayog. https://www.drishtiias.com/daily-news-analysis/revising-national-food-security-act-2013-niti-aayog
13. ForumIAS. (2021, June 8). Issues with NFSA. https://forumias.com/blog/on-the-issues-with-nfsa-the-national-food-security-act-has-been-starved-of-key-support/
14. ICRIER. (n.d.). NFSA 2013: Challenges and buffer stocking. https://icrier.org/publications/the-national-food-security-act-nfsa-2013-challenges-buffer-stocking-and-the-way-forward/
15. IJCRT. (2018). Public Distribution System: Challenges and impact. https://ijcrt.org/papers/IJCRT1893329.pdf
16. Department of Food and Public Distribution. (n.d.). Schemes for food security. https://dfpd.gov.in/Home/ContentManagement?Url=scheme.html&ManuId=3&language=1

Disclaimer: All diagrams were created using Canva, and tables were made with Google Sheets.

About The Contributor: Deepankshi Agnihotry is a research intern at IMPRI and holds a postgraduate degree in Electronics, is curious and passionate about sustainability and impactful policy solutions.

Acknowledgement: The author would like to express sincere gratitude to Dr. Vaishali Singh, Aasthaba Jadeja and the IMPRI team for giving the opportunity for writing the article.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.

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