Home India FARMERS IN NEWS Centre approves supply of improved-quality rice under PMGKAY; over 80 crore beneficiaries...

Centre approves supply of improved-quality rice under PMGKAY; over 80 crore beneficiaries to benefit

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2 July 2026

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Ziraat Times Team Report

CCEA cuts permissible broken grain content, introduces QR-code traceability; reform expected to save ₹2,161 crore annually

New Delhi, July 2: The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a major reform to improve the quality of rice supplied under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and other welfare schemes, with more than 80 crore beneficiaries set to receive better-quality rice under revised specifications.

The decision marks the first revision of rice quality standards under the Public Distribution System (PDS) in nearly three decades. The Centre said the move is aimed at enhancing food quality while improving operational efficiency, transparency and fiscal prudence in foodgrain management.

Under the new policy, the permissible broken grain content in raw rice supplied through PMGKAY has been reduced from 25 per cent to 10 per cent, while the limit for parboiled rice has been brought down from 16 per cent to 5 per cent.

According to the government, procurement of rice meeting the revised quality standards will begin immediately and will be rolled out in a phased manner across all procuring states by the Kharif Marketing Season (KMS) 2027–28. Distribution of the improved-quality rice under PMGKAY and other welfare schemes will also take place gradually to ensure a smooth transition.

The government said beneficiaries will continue to receive their existing foodgrain entitlement but with rice of superior grain integrity, improved appearance and higher consumer acceptability.

As part of the reform, broken rice separated during milling will be utilised for industrial and other productive purposes instead of being mixed with edible rice supplied under welfare schemes. This, officials said, will ensure that better-quality rice reaches beneficiaries.

The Centre estimates that the initiative will generate annual savings of around ₹2,161 crore by reducing transportation, storage and packaging costs. Broken rice will be auctioned directly from millers’ premises, while its storage in HDPE bags instead of jute bags is also expected to lower logistics expenses. Additional revenue from the sale of broken rice is expected to further reduce the food subsidy burden.

The proposal has already been tested through pilot projects in Haryana, Andhra Pradesh, Punjab, Odisha, Telangana and Chhattisgarh, where the government said large-scale production of improved-quality rice proved operationally feasible. Rice produced under these pilot projects will now also be supplied to beneficiaries under PMGKAY and other welfare schemes.

In another significant reform, the government has approved QR-code tagging of rice bags to enable end-to-end traceability throughout the supply chain. The measure is expected to strengthen transparency, improve inventory management and minimise leakages in the Public Distribution System.

The government said the reform represents the next step in strengthening India’s food security architecture by combining universal access with improved food quality, greater efficiency and enhanced accountability in the distribution system.

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