The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on Wednesday (May 27, 2026) approved the SARTHAK Public Distribution System (PDS) scheme for a period of five years at a cost of ₹25,530 crore to improve food security. The scheme will use advanced technologies for “transparency, security and sustainability” in PDS operations across India.

The approval covers the entire PDS value chain, Information and Broadcasting Minister Ashwini Vaishnaw told media persons after the Cabinet meeting.

“Right from the selection of beneficiaries to the movement of foodgrains, to getting proactive feedback from citizens, to reducing transportation distance — all those activities have been approved with an outlay of ₹25,530 crore for five years,” he said.

SARTHAK-PDS does not replace the existing PDS system but will ensure structural reform across the delivery of foodgrains, logistics, transportation, material handling, and grievance redressal, Mr. Vaishnaw said.

It’s conceived as an umbrella scheme which integrates the ongoing ‘Assistance to State Agencies for intra-State movement of foodgrains and FPS dealers’ margin under NFSA [National Food Security Act]’ and the ‘Scheme for Modernisation and Reforms through Technology in Public Distribution System (SMART PDS)’, an official statement said.

The merger is expected to strengthen the NFSA’s implementation under a single administrative framework. The merged scheme is slated operate up to March 31, 2031.

The scheme will provide financial support for intra-State movement and handling of PDS goods, and the fair price shops’ dealers’ margin. It also envisages a citizen-centric, interoperable PDS architecture for last-mile service delivery, and minimising leakages.

Advanced technologies, including AI, machine learning, blockchain, and natural language processing will enable real-time monitoring, grievance and analytics systems, data-driven oversight by State Command Control Centres, and ISO-certified process frameworks for security and transparency.

“The scheme will work towards fulfilling the Government of India’s commitment to 81.35 crore persons covered under NFSA. Building on the statutory and policy framework, SARTHAK-PDS retains and streamlines the financial assistance component while simultaneously embedding it within a modern, technology-driven PDS ecosystem,” the statement said.