SCAN and Anna Chakra to Reform the PDS System

Union Minister Launches Anna Chakra and SCAN Portal to Revolutionize India’s Public Distribution System

In a major step toward modernizing India’s Public Distribution System (PDS), the Union Minister of Consumer Affairs, Food and Public Distribution, and New & Renewable Energy recently launched the “Anna Chakra” and SCAN (Subsidy Claim Application for NFSA) portals.

These initiatives aim to enhance the efficiency of the PDS supply chain and streamline subsidy claims, benefiting millions reliant on food security programs.

What is Anna Chakra?

Anna Chakra is an innovative tool designed to optimize the PDS supply chain, developed in collaboration with the World Food Programme (WFP) and the Foundation for Innovation and Technology Transfer (FITT) at IIT-Delhi. It employs advanced algorithms to determine optimal transportation routes for food grains.

Key Features of Anna Chakra:

1. Enhanced Efficiency and Cost Savings: Streamlines logistics, ensuring timely delivery, and achieving annual savings of Rs 250 crore by reducing fuel consumption, time, and costs.
2. Environmental Sustainability: Reduces transportation distances by 15-50%, cutting emissions and contributing to a smaller carbon footprint.
3. Wide Coverage: Assesses optimization across 30 states, benefiting 4.37 lakh Fair Price Shops (FPS) and 6,700 warehouses.
4. Seamless Integration: Linked with the Railways’ Freight Operations Information System (FOIS) through the Unified Logistics Interface Platform (ULIP) and integrated with the PM Gati Shakti platform for geo-location mapping of FPS and warehouses.

About the SCAN System

The SCAN portal simplifies the subsidy claim process for states under the National Food Security Act (NFSA) 2013. It aims to modernize PDS operations, enhance fund utilization, and align with government initiatives to reduce leakages while ensuring food security for 80 crore citizens.

Key Features of the SCAN Portal:

1. Unified Platform: Provides a single window system for states to submit food subsidy claims, easing processes for all stakeholders.
2. Automated Workflow: Enables end-to-end automation for subsidy release and settlement, boosting efficiency and transparency.
3. Rule-Based Mechanism: Employs rule-based processing for scrutiny and approval of claims, expediting settlements.

Public Distribution System (PDS): An Overview

The PDS is India’s food security system, established to address food scarcity by offering affordable food grains. It operates under the NFSA, 2013, ensuring food security for nearly two-thirds of the population based on Census 2011 data.

Evolution of PDS:

• World War II: initiated as a rationing measure.
• 1960s: Expanded to address food shortages; included the Agriculture Prices Commission and FCI.
• 1970s: became universal.
• 1992: Revamped Public Distribution System (RPDS) targeted remote areas.
• 1997: Targeted Public Distribution System (TPDS) introduced to focus on Below Poverty Line (BPL) households.
• 2000: Antyodaya Anna Yojana (AAY) launched for the poorest families.

Management and Commodities:

The Central Government, through the FCI, manages procurement, storage, and bulk allocation, while state governments oversee local distribution, identify beneficiaries, and supervise FPS. PDS primarily distributes wheat, rice, sugar, and kerosene, with some states including pulses, edible oils, and salt.

Key Provisions of NFSA, 2013

• Coverage: Benefits 67% of India’s population (75% rural, 50% urban).
• Entitlements: 5 kg of food grains per person per month at subsidized rates of Rs 3/2/1 per kg for rice, wheat, and coarse grains. AAY households receive 35 kg monthly.
• Additional Benefits: meals for children, maternity benefits, and food security allowances.

Recent PDS Reforms

1. One Nation, One Ration Card (ONORC): Enables portability of ration cards across India, benefiting migrants.
2. Universal PDS in Tamil Nadu: Ensures every household’s access to subsidized grains.
3. SMART-PDS Scheme: Upgrades PDS technology for efficiency and transparency.
4. Computerized FPS: Installs POS machines for beneficiary authentication.
5. Aadhaar and DBT: reduce errors and ensure cash transfers for flexibility.
6. GPS and SMS Monitoring: Tracks food grain delivery and notifies citizens.

Challenges in PDS

1. Identification of Beneficiaries: Inclusion and exclusion errors persist, leaving eligible households out and including non-eligible ones.
2. Corruption and leakages: Around 28% of subsidized grains are lost, costing Rs 69,108 crore annually.
3. Storage and Distribution: Inadequate facilities lead to wastage and inefficiency.
4. Food Quality: Poor-quality grains fail to meet diverse nutritional needs.

Way Forward

1. Digitalization and Monitoring: Utilize blockchain, IoT, and AI for tracking and detecting irregularities. Modernize FPS with biometric systems and electronic weighing scales.
2. Portable Benefits for Migrants: Enhance ONORC with better coordination and real-time tracking.
3. Storage Modernization: Upgrade to IoT-based silos and tech-enabled decentralized storage.
4. Nutritional Security: Turn FPS into nutrition hubs, introduce vouchers, and include millets in the PDS.

These measures, coupled with the Anna Chakra and SCAN portal, are poised to strengthen the PDS, ensuring greater transparency, efficiency, and food security for India’s vulnerable populations.