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India's Food Scheme Receives $306M Boost, Extends for Five Years
India's Cabinet has approved a five-year extension for the SARTHAK-PDS scheme, allocating approximately $306 million. This initiative consolidates two existing programs, aiming to enhance foodgrain movement and ensure fair price shop dealer margins.
India's Union Cabinet has granted a five-year extension to the SARTHAK-PDS scheme, effective until March 2031, with an approved outlay of $306 million. This initiative integrates two existing programs and introduces revised norms for central assistance to states and Union Territories. The updated guidelines cover intra-state foodgrain movement, handling, and fair price shop (FPS) dealer margins, while retaining the existing funding structure.
The scheme consolidates two programs: assistance to State Agencies for Intra-State Movement of Foodgrains and FPS Dealers' Margin under NFSA, and the Scheme for Modernization and Reforms through Technology in Public Distribution System (SMART PDS). Its core objective is to strengthen NFSA implementation, target last-mile service delivery, and minimize leakages. The Cabinet has also updated norms for intra-state movement and FPS dealer margins to ensure fair compensation.
Since April 1, 2023, the SMART PDS scheme has served as a technological cornerstone, facilitating reforms like digitizing ration cards, Aadhaar seeding, and automated FPS operations. The scheme's dual mandate provides financial support for intra-state movement, handling, and FPS dealer margins, alongside developing a unified, citizen-centric, and interoperable PDS architecture. Its aim is to ensure last-mile service delivery while mitigating leakages. The technology stack includes AI, machine learning, natural language processing, and blockchain to modernize PDS operations, incorporating standardized architectures, unified databases, and AI-driven grievance redressal. ISO-certified process frameworks will enhance transparency, security, and operational sustainability across all 36 states and union territories.
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