Policy Update
Madhur Thapar
Background
The National Food Security Act (NFSA), 2013 is a landmark legislation that legally guarantees the right to food for a significant portion of India’s population. Its core aim is to ensure that every individual has access to adequate quantities of quality food at affordable prices, thereby addressing chronic hunger and malnutrition across the country. Rather than viewing food distribution as a welfare measure, NFSA treats it as an enforceable right, placing a legal obligation on the state to provide subsidised foodgrains to eligible households.
The Act covers about two-thirds of India’s population, including 75% of rural and 50% of urban residents, through the Targeted Public Distribution System (TPDS). It marks a shift from a scheme-based welfare model to a rights-based, legal framework, ensuring that food security is not left to the changing priorities of political administrations.
Distribution proportions were determined using the 2011 household consumption survey (NSSO) data, and state-wise coverage limits were fixed by the central government, while actual household identification is carried out by state and union territory governments. Within these coverage slabs, households are classified into two main categories: Antyodaya Anna Yojana (AAY) and Priority Household (PHH).
Functioning
- Collaboration with other schemes– As mentioned above, distribution slabs are decided on the basis of two schemes, Antyodaya Anna Yojana (AAY) targets the “poorest of the poor.” These are households judged to be in extreme deprivation, landless agricultural labourers, marginal farmers, elderly with no regular support, rural artisans with no assured income and similar groups. AAY households receive 35 kg of foodgrains per family per month at highly subsidised central issue prices. Priority Households (PHH), falling within the broader NFSA coverage but not in the AAY bracket, receive 5 kg per person per month. The precise criteria for inclusion in PHH are determined by state governments and often draw on a mix of socio-economic indicators, asset ownership exclusions, and local vulnerability assessments.
- Procurement, Storage and Distribution- The Food Corporation of India (FCI), along with state agencies, procures grains at Minimum Support Prices (MSP), transports them to warehouses, and releases monthly allocations to Fair Price Shops (FPS). Beneficiaries use Aadhaar-linked digital ration cards to claim entitlements through electronic Point of Sale (ePoS) devices, ensuring transparency and recordkeeping.
- Ration Card Digitisation and Targeting- As of early 2023, nearly 19.8 crore NFSA ration cards have been fully digitised, with 99.8% of 5.33 lakh fair price shops equipped with ePoS machines. Around 95% of foodgrain deliveries pass through these digital channels, modernising processes and reducing fake cards via Aadhaar seeding and eKYC.
- Aadhaar-Based Biometric Authentication (ABBA)– Since 2015, many states have mandated biometric verification for ration collection. While it was intended to stop identity fraud, there have been mixed outcomes, studies in Jharkhand, Rajasthan, and UP indicated marginal impact on reducing corruption but higher exclusion of genuine beneficiaries due to authentication failures.
- Full PDS Computerisation and Portability with ONORC- By mid 2021, transaction logs, Aadhaar seeding, and unified beneficiary databases covered nearly all states and union territories. ONORC (One Nation, One Ration Card), launched in 2019, adds national portability: beneficiaries can access their food entitlements in any state using their Aadhaar-linked card. As of FY 2022–23, ONORC has been enabled in all States and union territories covering close to 80 crore NFSA beneficiaries.
Performance
The National Food Security system in India has seen major budgetary shifts over recent years. For the financial year 2024–25, the Department of Food and Public Distribution was allocated ₹2.13 lakh crore, with a staggering 96% of this budget directed toward food subsidies. This maintains the post-pandemic pattern, as there was a steep surge in government’s subsidy burden due to the launch of Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and removals of FCI loan waivers particularly during 2020–22.
Even while emergency relief measures phased out, the food subsidy budget stayed at ₹2.06 lakh crore in 2022–23 and remained the same in 2023–24. In that year, ₹1.46 lakh crore was spent on procurement through the Food Corporation of India (FCI), while the rest went to storage, logistics, and other nutrition programs.
Coming to food grain supply, In 2023 approximately 450 lakh tonnes of foodgrains were distributed under the combined NFSA and PMGKAY framework, averaging 40–41 lakh tonnes per month. Of this, around 80 lakh tonnes were delivered under the One Nation One Ration Card (ONORC) system which facilitated over 28 crore inter- and intra-state transactions freeing access to food entitlements for migrant workers more broad-based. India’s grain transportability improved with ONORC, but the majority of grain nevertheless continued to move within states.
Impact
The National Food Security Act (NFSA) has transformed Indians’ food entitlements by legally guaranteeing subsidized food grains to nearly two-thirds of the population. Its effectiveness has been especially pronounced during periods of crisis, most specifically during the COVID-19 pandemic, by providing aid to vulnerable populations. Through the PDS, NFSA provided regular access to food staples, especially for the elderly and the impoverished, ensuring a basic level of food security in all states.
One of the most notable successes includes the digitization of the PDS and the successful implementation of One Nation One Ration Card (ONORC) system. These reforms increased transparency, reduced system leakages, and provided portability for migrant workers. It is estimated that by 2023, more than 28 crore subsidized food transactions were completed under ONORC. This demonstrates the increased portability of food entitlements across state borders. Other initiatives under NFSA, such as fortified rice distribution, demonstrate a shift in focus to better nutrition in addition to calorie intake.
Emerging Issues
- Outdated data: The Act still relies on outdated 2011 census data for beneficiary identification, excluding many deserving individuals while continuing coverage for some who no longer need it. NITI Aayog and expert panels recommend reducing coverage to 40% of the population while increasing entitlements to 7 kg per person.
- Fiscal Strain: The central issued prices for food grains have remained unchanged since 2002, despite rising procurement and distribution costs. In 2023, the government transitioned to full subsidy-based distribution, which made grains entirely free under the integrated PMGKAY-NFSA scheme. While this helped to address food insecurity, it significantly increased the financial burden. The shift marked a departure from the NFSA’s original design, which allowed for timely price adjustments, and raises concerns about the long-term fiscal sustainability of such a universal entitlement model.
- System inadequacy: CAG and PRS reports note that, despite digitisation, duplicate identification remains a problem. Connectivity gaps in rural and tribal regions remain and proves ePoS to be ineffective. Low literacy in the regions also limits mobile app usage.
Way Forward
Overall, NFSA remains India’s flagship food security scheme. For “ New India”, it has largely ensured the availability of cereals at affordable prices to the poor and institutionalised the right to food. Going forward, policy makers must ensure NFSA’s budget and procurements are enough to match the needs of the people and that new census data are used.
Improving the accessibility and quality of food will be critical, as will fixing persisting PDS inefficiencies. Emphasis on technology, timely audits, and community oversight can strengthen accountability. The pandemic showed NFSA’s vital role; persistent political and administrative support can help the Act fulfill its vision of nutritional security for all.
Conclusion
A decade after its enactment, the NFSA remains a cornerstone of India’s welfare architecture, ensuring basic food security for millions. While notable progress has been made, especially with ONORC and digital reforms, systematic challenges persist, particularly with inclusion, quality, and grievance mechanisms. Moving forward, data-driven updates, decentralised innovations, and stronger accountability frameworks will be central to realising the Act’s full potential and advantage India’s journey toward Zero Hunger.
References
- Department of Food and Public Distribution, Government of India – National Food Security Act, 2013: Coverage and Entitlements. https://nfsa.gov.in (Accessed July 2025).
- PRS Legislative Research (2023). Demand for Grants 2024-25: Food and Public Distribution. https://prsindia.org
- PRS Legislative Research (2022). Demand for Grants 2022-23: Food and Public Distribution. https://prsindia.org
- Press Information Bureau, Govt. of India (2024). Year-end Review of Department of Food & Public Distribution 2023-24. https://pib.gov.in
- Press Information Bureau, Govt. of India (2023). NFSA Reforms and Distribution Data. https://pib.gov.in
- Times of India (2024). Global Hunger Index 2024: India ranks under ‘serious’ category. https://timesofindia.indiatimes.com
- Harikishan Sharma (2020). Explained: What is the ‘One Nation, One Ration Card’ system? Indian Express. https://indianexpress.com
About the contributor: Madhur Thapar is a Research Intern at IMPRI. She is currently pursuing her undergraduate degree in Political Science from Kamala Nehru college, Delhi university. Her research interest include public policy, international relations and psychology
Acknowledgement: The author sincerely thanks Aasthaba Jadeja and other IMPRI fellows for their valuable contribution.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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