News

Gujarat model: Note on PDS aimed at making system cashless submitted

NEW DELHI: At the request of the Centre, the Gujarat government submitted a concept note outlining a model aimed at making the public distribution system (PDS) cashless and more transparent. However, implementation of this Gujarat model of a transparent and efficient PDS has encountered opposition from the national fair price shop (FPS) dealers association, which perceives it as a strategy to eliminate PDS dealerships. The concept note, seen by this newspaper, outlines how the state government will issue central bank digital currency (CBDC)/ e-rupee or digital food coupons to beneficiaries, enabling cashless, Aadhaar-authenticated delivery at FPS. The Gujarat food, civil supplies & consumer affairs department has designed the model to minimise manual intervention, enhance accountability, strengthen beneficiary safeguards and improve financial transparency. The note was shared with Sanjeev Chopra, secretary, Centres department of food and public distribution (DFPD), on November 24. These digital coupons will allow beneficiaries to purchase rations from any FPS, and it is a prerequisite step to convert the scheme into a cashless or direct benefit transfer, said Biswambhar Basu, general secretary, All India Fair Price Shop Dealers Federation (AIFPS). The current PDS system is that beneficiaries visit the FPS and use biometrics to authenticate and receive rations. In its note, Gujarat reiterated its commitment to work closely with DFPD to implement innovative, technology-driven solutions for strengthening the PDS. The note states that Gujarat proposed to issue 7 coupons every month 2 for central commodities, i.e. wheat and rice, and 5 for state commodities such as tur dal, edible oil, salt and sugar.