Context: Recently, the Union government launched the Anna Chakra and the Subsidy Claim Application for NFSA (SCAN) portal, ushering in reforms to modernize the Public Distribution System (PDS) and streamline subsidy claim strategies.

Anna Chakra

• It is developed by the Department of Food and Public Distribution in collaboration with the World Food Programme (WFP) and IIT Delhi’s Foundation for Innovation and Technology Transfer (FITT). 

• It employs superior algorithms to optimize food grain motion across the supply chain, concerning farmers, transporters, warehouses, and Fair Price Shops (FPS).

Key functions of Anna Chakra

• Route Optimization: Leveraging algorithms to become aware of green routes, minimizing transportation time and costs.

• Integration with Railways and Logistics Platforms: Integrated with the Freight Operations Information System (FOIS) of the Railways and the PM Gati Shakti platform, which maps geo-places of FPSs and warehouses.

• Environmental Benefits: Reduced transportation-associated emissions decrease the carbon footprint, contributing to sustainable development.

SCAN Portal

• The Subsidy Claim Application for NFSA (SCAN) Portal goals to simplify and expedite the subsidy claim process for states under the NFSA.

Key functions consist of:

• Single-Window Submission: Ensures streamlined claim submission by states.

• Automated Workflow: Rule-based automation of claim scrutiny, approval, and settlement.

• Efficiency in Subsidy Settlement: Enables real-time tracking and decreases delays in fund disbursal.

Other Initiatives for Food Security

• Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY): Beneficiaries get hold of 5 kg of wheat or rice free each month.

• Initially launched for the duration of the COVID-19 pandemic in March 2020, it’s been prolonged for 5 years from January 2024.

• Antyodaya Anna Yojana (AAY): Entitled families receive 35 kg of grains month-to-month at particularly subsidized rates—?3/kg for rice and ?2/kg for wheat—irrespective of family size.

• Integrated Management of Public Distribution System (IM-PDS): Facilitates One Nation One Ration Card (ONORC), permitting beneficiaries access to food grains across India, improving migrant people’ access to food security.

• Decentralized Procurement (DCP) Scheme: Encourages states to procure and distribute food grains immediately, reducing logistics costs and ensuring localized management of food security.

Challenges with the PDS System

• Diversion of Food Grains: A tremendous share of food grains is leaked at some level in transportation or diverted to the black market.

• Inclusion and Exclusion Errors: Non-eligible households obtain advantages, burdening the system.

• Genuine beneficiaries are excluded because of flaws in the identity method.

• Corruption at Fair Price Shops (FPS), such as under-weighing food grains, selling poor-quality goods, or charging higher costs, undermines the system’s effectiveness.

• Inadequate warehousing facilities lead to spoilage and wastage of food grains.

Road Ahead

• Infrastructure Expansion: Strengthen storage and transportation centers to aid the developing scale of operations.

• Technological Integration: Leverage artificial intelligence and blockchain for real-time tracking and reducing inefficiencies.

• Sustainable Practices: Promote inexperienced logistics and energy-efficient transportation solutions to lessen the carbon footprint similarly.