Policy Update
Prashail Tripathi
BACKGROUND:
SMART-PDS is a centrally sponsored, technology-oriented reform initiative by the Department of Food & Public Distribution (DFPD), Ministry of Consumer Affairs, aimed at enhancing and consolidating the IT infrastructure of India’s Public Distribution System (PDS). With a total budget of ₹349.9 crore, the three-year (April 2023–March 2026) approved program builds on previous computerization attempts (End-to-End TPDS and the Integrated Management of PDS/IM-PDS) and introduces a modern, standardized national platform that unifies state and central operations throughout the PDS lifecycle.
Recent parliamentary responses indicate that the Centre contributes ₹286.82 crore, while the States and UTs contribute ₹63.07 crore. The cost-sharing arrangement is 60:40 for the majority of States, 90:10 for the Northeast and Hill States, and 100% centralized financing for UTs (excluding J&K). The overall goal of the program is to make the system robust, data-driven, and simpler to monitor while guaranteeing transparency, portability, and efficiency in the administration of food security entitlements under the National Food Security Act (NFSA).
In essence, NIC is developing SMART-PDS as a single application with four main modules that address (i) the procurement of food grains, (ii) supply chain management and allocation, (iii) the management of ration cards and fair price shops (FPS), and (iv) the distribution of grains at FPS outlets using biometric/e-KYC. Using a contemporary, modular (microservices) stack, the architecture is intended to run on MeghRaj 2.0 cloud and offer real-time analytics, dashboards, interdepartmental data sharing, and more stringent cyber-security and disaster-recovery measures.
Vehicle tracking for grain transportation, electronic workflows, and state-level command and control centres for ongoing monitoring are examples of operational improvements. These features are meant to facilitate data-driven policy decisions, standardize procedures across the country, and lessen leaks and diversion.
FUNCTIONING:
With the goal of improving the efficiency, transparency, and inclusivity of the distribution of subsidised food grains, the SMART-PDS program is a cutting-edge, technologically driven modernisation of India’s public distribution system. Under the End to End Computerisation and Integrated Management of Public Distribution System schemes, it is intended to maintain and enhance the technological advancements that were previously implemented.
By establishing a single, cloud-based, integrated central system that handles all PDS-related operations across all states and union territories, SMART-PDS, which is scheduled to be implemented between 2023 and 2026, fills the various technological gaps at the state level.
Four modular sub-systems form the foundation of SMART-PDS. The first is the procurement of food grains, which guarantees effective stock management and acquisition by the Food Corporation of India (FCI) and other organisations. In order to maximise the flow of grains from procurement centres to fair price stores, the second module addresses supply chain management, enabling real-time allocation, shipping logistics, and inventory tracking.
In order to maintain a clear and transparent database free of duplicates and ghost entries, the third module automates beneficiary identification, ration card issuance, and dealer licensing in addition to managing ration cards and fair price shop registration. The fourth essential element is biometric-based grain distribution (eKYC), which uses electronic Point of Sale (ePoS) devices to implement Aadhaar-seeded biometric verification systems to authenticate beneficiaries at FPS outlets.
Utilising cloud computing and live data analytics, SMART-PDS improves decision-making at every level by facilitating dynamic demand forecasting and supply modifications that lower theft and waste. By supporting the “One Nation One Ration Card,” the program promotes interoperability and enables participants to access their benefits anywhere in India, thereby facilitating migrant populations’ mobility.
The automation of the system reduces the need for human intervention, which greatly reduces the corruption and leaks that have historically been connected to the PDS. Command Control Centre’s and State Project Implementation Teams (SPITs) are set up to offer ongoing technical assistance and oversight, guaranteeing a smooth rollout and ongoing operation.
All things considered, SMART-PDS revolutionizes the conventional PDS by establishing an environment that is open, accountable, and easy to use and ensures the timely and fair distribution of food grains. Food security for India’s most vulnerable populations is ensured through a modernized, data-driven approach by integrating biometric identification and cloud technology, which enable the government to oversee every transaction and successfully combat fraud.
PERFORMANCE:
With the aim of maintaining and improving technological reforms previously carried out under programs like End-to-End Computerisation and Integrated Management of Public Distribution System (ImPDS), the Central Government of India formally introduced the SMART-PDS scheme in 2023.
Early in 2023, the Cabinet gave its approval, and on August 4, 2023, the federal and state governments signed a Memorandum of Understanding (MoU) to implement SMART-PDS in a number of states and Union Territories between 2023 and 2026. Since the beginning, SMART-PDS has been a cloud-based, integrated platform with modules for supply chain management, ration card and FPS management, food grain procurement, and biometric-based grain distribution.
An accelerated grain distribution campaign conducted in June 2025 demonstrates the remarkable robustness and scalability of SMART-PDS from a performance perspective. The system dealt with a 3x increase in volume during this initiative, and this included electronically verified transactions through ePoS devices, to guarantee on time and seamless food grain delivery, even during the monsoons.
Assam shattered the previous record by handling over 35 lakh biometric ePoS transactions in one day, showcasing the platform’s technical ambit and preparedness. Due to widespread acceptance, large-area regions such as Andhra Pradesh, Telangana, Madhya Pradesh, and Maharashtra have engaged proactively. Furthermore, by merging it with the One Nation One Ration Card (ONORC) initiative, recipients can now easily obtain their ration allowances across the country, enhancing portability and ease for migrating groups.
The execution of the program shows how it has enhanced transparency, reduced leaks, and enabled precise management of the food grain supply chain. Real-time tracking systems based in the cloud have enhanced logistics and inventory management, while biometric data verification has diminished fraudulent claims.
IMPACT:
When compared to the conventional PDS, the SMART-PDS system has greatly increased transparency, operational effectiveness, and beneficiary satisfaction since its introduction in 2023, revolutionising India’s PDS. The fact that SMART-PDS handled a phenomenal foodgrain allocation campaign in June 2025, where it handled a threefold increase in load and supported the smooth delivery of rations across 29 states, is an important measure of its success. As it effectively serves millions of beneficiaries, the volume of biometric-authenticated transactions demonstrates the SMART-PDS platform’s resilience and scalability.
The technological integration of SMART-PDS, which reduces leaks and thefts that have long jeopardised food security objectives, is another significant advantage over legacy PDS systems. SMART-PDS reduces ghost and duplicate ration cards by integrating biometric eKYC verification at Fair Price Shops, guaranteeing that only qualified recipients receive their benefits.
In contrast to the unclear paper-based records of the past, real-time tracking via cloud infrastructure enables flexible allocation and stock management. A more accountable and transparent system that provides food grains to intended recipients quickly and precisely has been achieved through these reforms, which have decreased human intervention and the mistakes or corrupt practices that go along with it. Additionally, the One Nation One Ration Card (ONORC) program is supported by the interoperability made possible by SMART-PDS, which enables migrants and displaced people to access food security amenities all over India.
Previous PDS models were centred around states and lacked technological connectivity, making this national portability impossible. Cross-state ration collection, beneficiary access simplification, and the inclusion of disadvantaged groups across states have all benefited greatly from this change. Early indicators point to increased user convenience, less traffic in ration shops, and better government tracking and policy planning capabilities, even though full nationwide implementation is currently under way with phased launches anticipated by late 2025.
EMERGING CHALLENGES:
Even though SMART-PDS uses new technology to improve India’s Public Distribution System, it still faces many challenges. One big issue is that people and shop owners in rural and remote areas often don’t know how to use digital tools like fingerprint scanners or electronic devices needed to get their ration. The lack of digital skills means vulnerable people might find it hard to use the system properly. Also, in many remote places, internet connection is not reliable, electricity cuts are common, and sometimes shops do not have the right machines. These problems make it difficult for the system to have the same positive impact everywhere.
Even though there are systems to check identities using fingerprints or Aadhaar numbers, mistakes happen. According to various statistics, about 25 out of 100 people who shouldn’t get food sometimes do, and up to 61 out of 100 who should get, don’t. This is a big problem because it means some poor families miss out while others get more than their share. Even with real-time checks and technology, some corruption and theft still happen, especially in areas where regulations are not well enforced and checked upon from time to time. Changing from old, manual ways to this new digital system can also face resistance from people used to the old method, as, for them, transitioning is a big change which they might not be ready for.
As the system grows, it also has to handle lots of data safely. Protecting people’s personal information like fingerprints and ration details is very important to keep their trust. Linking SMART-PDS with other government welfare programs smoothly without causing confusion or errors is another difficult task. The system needs a strong firewall to avoid hacking or loss of data.
To fix these problems, the government must keep improving technology used in the system while at the same time enhancing electricity access in remote places, provide easy help to people to learn how to use the system, regularly update and check beneficiary lists carefully, and keep a close watch on shops to prevent cheating. Clear communication, training, better infrastructure, and strong rules will help SMART-PDS work better and ensure that all poor people can get their right food support.
WAY FORWARD:
Prioritizing efficiency, affordability, and responsibility is a pragmatic strategy for improving the SMART-PDS scheme’s implementation, particularly for the improvement of society’s marginalized groups. To ensure that every stakeholder, including those in remote or rural areas, can confidently use biometric authentication and other digital tools, without any scope for skepticism, a significant focus on computer proficiency as well as instruction for beneficiaries and Fair Price Shop (FPS) operators is necessary.
To help users navigate the system, efforts should be made to provide community help centers, regional language support, and simple-to-understand instructions. Second, SMART-PDS will continue to run smoothly and continuously if infrastructure in underdeveloped areas is improved. This includes internet connectivity, a dependable power source, and device availability. Technology cannot work effectively without these fundamentals, and despite the system’s potential, many people may be left behind.
Additionally, to reduce and ultimately remove ineligible entries like ghost beneficiaries, it is essential that data is consistently updated and verified to decrease errors in beneficiary identification. To enhance fairness and foster trust, the procedure must incorporate explicit methods for individuals to express their grievances and periodic surveys to refresh and verify the correctness of beneficiary information. Transparency and involving the community can help prevent corruption. Leakages can be reduced by encouraging citizens to spot problems and report them using public monitoring tools, along with regular audits and showing distribution records openly at ration shops for everyone to see.
REFERENCES:
1. Press Information Bureau. (2023, March 2). SMART-PDS, a technological driven initiative should be implemented in all States/UTs: Shri Goyal [Press release]. Ministry of Consumer Affairs, Food & Public Distribution. Retrieved from https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1903594
2. Department of Food & Public Distribution. (2025). Scheme for Modernization and Reform through Technology in Public Distribution System (SMART-PDS). Government of Maharashtra. Retrieved from https://mahafood.gov.in/en/scheme-for-modernization-and-reform-through-technology-in-public-distribution-system-smart-pds/
3. Sansad. (2025). Smart Public Distribution System (SMART-PDS) [PDF document]. Retrieved from https://sansad.in/getFile/annex/268/AU2604_vfEWy1.pdf?source=pqars
4. Sansad. (2025). ANSWER [Lok Sabha Q. 4518 – Progress & rollout of SMART-PDS] [PDF document]. Retrieved from https://sansad.in/getFile/loksabhaquestions/annex/185/AU4518_ge2pFO.pdf?source=pqals
5. Times of India. (2025, July 21). Delhi to link digital scales with ePoS at ration shops. Times of India. Retrieved from https://timesofindia.indiatimes.com/city/delhi/delhi-to-link-digital-scales-with-epos-at-ration-shops/articleshow/122801349.cms
6. Informatics Division, NIC. (2025, June 9). SMART PDS sets record in June with massive foodgrain distribution. Informatics.nic.in. Retrieved from https://informatics.nic.in/news/1544
About the contributor:
Prashail Tripathi has completed his post-graduation (M.A) in National Security Studies from the Central University of Jammu. He has been affiliated with IMPRI as a Policy Research Intern since June 2025. His core interests include understanding current geopolitical scenarios, civil-military relations of India’s neighboring countries, energy security and International Relations.
Acknowledgement:
The author extends sincere gratitude to Ms. Aasthaba Jadeja for her invaluable guidance and mentorship throughout the research process.
Disclaimer:
All views expressed in the article belong to the author and not necessarily to the organisation.
Read more at IMPRI:
SCO and the Shifting Balance: China’s Bid to Shape Global Governance
Energy, Security, and Strategy: Why Central Asia Matters to India
