India Launches ₹25,530 Crore SARTHAK Scheme to Modernize Food Distribution

India’s Cabinet Committee on Economic Affairs approved the SARTHAK-PDS scheme on June 04, combining two existing food distribution programmes under one umbrella. The Centre will spend ₹25,530 crore over five years until March 31, 2031. The scheme aims to reduce leakages, improve transparency, and strengthen food security for beneficiaries under the National Food Security Act.

What the New Scheme Combines

SARTHAK-PDS merges two existing initiatives: assistance for intra-state grain movement and Fair Price Shop dealer margins, plus the SMART PDS technology modernization scheme. The integration creates one unified system for food distribution across states and Union Territories. This consolidation aims to eliminate overlaps and improve coordination between federal and state governments.

How Technology Modernizes Distribution

The scheme uses artificial intelligence, machine learning, natural language processing, and blockchain to track grain movement from mill to beneficiary. Standardised digital architectures and unified databases enable real-time monitoring of grain stocks and distribution. This digital tracking reduces theft, fraud, and administrative errors in the public distribution system.

Support for Dealers and Last-Mile Delivery

The scheme provides assured financial support for grain transportation and handling costs across states. Fair Price Shop dealers receive enhanced margins to improve service at the final distribution point. Revised norms for Central assistance maintain existing funding patterns while increasing dealer compensation to strengthen last-mile delivery to beneficiaries.

Scope and Timeline

The scheme covers 81.35 crore ration card holders across India. Implementation runs through March 31, 2031, under the 16th Finance Commission cycle. States and Union Territories will receive Central support for grain movement expenses and dealer margins based on revised norms approved by the Cabinet.

Final Thoughts

The ₹25,530 crore SARTHAK-PDS scheme consolidates food distribution programmes and adds digital tracking to reduce waste and fraud. For ration card holders, this means faster, more transparent grain delivery and fewer supply disruptions.

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