Union Home Minister Amit Shah launched a Central Bank Digital Currency based Public Distribution System in Gandhinagar, with senior state and central ministers present. He described the initiative as an extension of Digital India into food and supply systems and said the Prime Minister had prioritised the poor, Dalits, backward classes and tribal communities in resource allocation. The scheme was presented as a technology driven means to safeguard the rights of the underprivileged.

Officials noted that earlier 600 million (mn) people lacked bank accounts and that India now accounts for half of the world’s digital transactions, enabling the extension of digital tools into affordable food distribution. The ministry stated that the CBDC based PDS will reduce corruption by enabling direct digital delivery and will build on the experience of direct benefit transfer in reducing fraud. The plan aims to implement the principle of minimum government and maximum governance in the PDS.

The launch included an Annapurna dispensing machine that delivers 25 kilogram (kg) of food grains in 35 seconds and officials indicated the system will be rolled out across the country over the next three to four years. After implementation every eligible poor person will receive five kg of free food grains and the machines are expected to improve quality control and ensure accurate quantities while reducing the role of middlemen.

Officials said connectivity now reaches 107,000 villages (0.107 million (mn)) and that five kg per person per month has been provided to 800 million (mn) people. The PM SVANidhi scheme has been extended to 10.9 million (mn) street vendors and officials credited policies with improving living standards for more than 600 million (mn) people and lifting 270 million (mn) out of poverty. They noted that the agriculture budget rose from Rs 260 billion (bn) to Rs 1.29 trillion (tn) and that farmers have received Rs 6,000 annually for 10 years. Officials added that FTAs and trade deals had safeguarded farmer interests and that the CBDC PDS would secure the right to food by removing middlemen.