CCEA Approves PDS Rice Quality Reform, Expects Annual Savings of Rs 2,161 Crore

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In a significant move to improve the quality of food grains supplied under government welfare schemes, the Cabinet Committee on Economic Affairs (CCEA) has approved new quality-related norms for rice distributed under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and other welfare schemes. This decision marks the first change in rice quality norms under the Public Distribution System (PDS) in nearly three decades. Its objective is to provide better quality rice to over 80 crore beneficiaries across the country.

Under the new norms, the permissible limit for broken grains in raw rice has been reduced from 25 percent to 10 percent, while for parboiled rice, the limit has been lowered from 16 percent to 5 percent. Procurement under the new rules will commence immediately and will be implemented in a phased manner across all procuring states by the Kharif Marketing Season (KMS) 2027–28. The distribution of superior quality rice will also be carried out in phases to ensure a smooth transition.

Better Quality Rice Without Changing Beneficiary Entitlements

The government said the revised standards are aimed at improving the quality, appearance and consumer acceptability of rice supplied under PMGKAY, while ensuring that beneficiaries continue to receive their existing foodgrain entitlement without any reduction in quantity. More than 80 crore people covered under PMGKAY and other welfare schemes are expected to benefit from the improved quality of rice.

Fiscal Savings and Productive Use of Broken Rice

Under the new policy, broken rice generated during the milling process will be separated and diverted for other productive uses instead of being supplied through the Public Distribution System. The Centre estimates that the reform will lead to annual cost rationalisation of around ₹2,161 crore by reducing transportation, storage and packaging expenses. Broken rice will be auctioned directly from millers’ premises, while the use of HDPE bags in place of jute bags for its storage is expected to further reduce operational costs. Revenue generated from the sale of broken rice is also expected to help lower the overall food subsidy burden.

Pilot Success and QR-Based Traceability

This proposal was successfully tested in Haryana, Andhra Pradesh, Punjab, Odisha, Telangana, and Chhattisgarh, demonstrating its viability. Following Cabinet approval, the high-quality rice produced during the pilot project will now be distributed under PMGKAY and other welfare schemes. Under this reform, there is a plan to affix QR codes on rice bags to enable end-to-end tracking within the supply chain. This will enhance transparency, accountability, and inventory management in the Public Distribution System, effectively eliminating any scope for leakage. The government has ensured food security for every eligible family. (PIB)

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