AP to introduce digital ration distribution system

Under the new system, every ration card-holding family will be linked to a digital wallet. The subsidy amount provided by the Centre will be directly transferred to beneficiaries in the form of a digital rupee

Metro India News | AMARAVATI

Andhra Pradesh is set to introduce a major reform in its public distribution system by adopting Central Bank Digital Currency (CBDC) technology for ration delivery. State Civil Supplies Minister Nadendla Manohar announced that the new system would soon be launched on a pilot basis in Vijayawada and Visakhapatnam.

The announcement came after the minister’s meeting with Union Food and Public Distribution Minister Pralhad Joshi during his visit to New Delhi. Officials said the CBDC-based ration distribution model is already being implemented experimentally in four districts of Gujarat.

Under the new system, every ration card-holding family will be linked to a digital wallet. The subsidy amount provided by the Centre will be directly transferred to beneficiaries in the form of a digital rupee. Beneficiaries can then use the amount to purchase essential commodities from fair price shops.

Minister Manohar said the system would eliminate the need for biometric authentication while ensuring greater transparency for both beneficiaries and ration dealers. Beneficiaries would know the exact subsidy credited to their wallets, while dealers would have clarity on their margins and transactions.

The minister also announced several additional measures related to food distribution and welfare schemes. He said the state government had decided to supply quality steamed rice instead of regular fine rice under the Dokka Seethamma Mid-Day Meal Scheme for government schools and hostels. The proposal has reportedly received approval from the Union government.

In another development, the Centre has agreed to procure two lakh tonnes of boiled rice from Andhra Pradesh, providing relief to the state’s rice millers and farmers.

The Civil Supplies Minister further revealed that the government plans to establish 1,000 mini-marts across the state to provide essential commodities to consumers at affordable prices.

Additionally, the National Cooperative Consumers’ Federation (NCCF) has agreed to market the internationally recognised Araku Coffee in military canteens across India, a move expected to boost the visibility and sales of the tribal coffee brand nationwide.