**Executive Summary**
The Cabinet Committee on Economic Affairs (CCEA) has approved a reform to improve the quality of rice distributed under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and other welfare schemes. The policy significantly reduces permissible broken grain content and introduces QR-code traceability to enhance transparency and operational efficiency. Procurement begins immediately, with a phased nationwide rollout scheduled for completion by the Kharif Marketing Season (KMS) 2027–28.
**Key Points / Main Content**
* **Revised Quality Specifications**
* The maximum broken grain content in raw rice is reduced from 25% to 10%.
* The maximum broken grain content in parboiled rice is reduced from 16% to 5%.
* These updates represent the first revision to Public Distribution System (PDS) rice quality standards in nearly thirty years.
* **Fiscal and Operational Reforms**
* The reform is projected to generate annual savings of approximately ₹2,161 crore by rationalizing transportation, storage, and handling costs.
* Broken rice will be separated during milling and auctioned directly from millers' premises for industrial use.
* Storage requirements will be optimized by using HDPE bags for broken rice instead of traditional jute bags.
* Revenue from the sale of broken rice will be used to reduce the national food subsidy burden.
* **Transparency and Traceability**
* Rice bags will feature QR-code tagging to enable end-to-end traceability across the supply chain.
* Enhanced inventory management and accountability measures are intended to prevent leakages within the PDS.
* **Implementation and Rollout**
* The policy has been validated through successful pilot programs in Haryana, Andhra Pradesh, Punjab, Orissa, Telangana, and Chhattisgarh.
* Procurement of improved-quality rice starts immediately, with a phased transition for all procuring states and distribution networks.
**Impact Analysis**
**Beneficiaries (Over 80 crore individuals)**
**Impact:** Beneficiaries will receive rice with better grain integrity, improved appearance, and higher consumer acceptability. Their existing food entitlements remain unchanged.
**Action Required:** No action is required; beneficiaries will receive the higher-quality rice through the phased rollout at their local distribution points.
**Rice Millers**
**Impact:** Millers are now required to separate broken rice to meet the stricter 5% and 10% thresholds. They will facilitate direct auctions of broken rice from their premises.
**Action Required:** Adjust milling processes to meet new specifications and utilize HDPE bags for the storage of separated broken rice.
**Procuring States and Government Agencies**
**Impact:** Agencies must manage a transition in procurement standards and implement new digital tracking systems.
**Action Required:** Ensure all procurement follows the revised specifications and integrate QR-code tagging for rice bags to ensure supply chain transparency by the KMS 2027–28 deadline.
Key Entities Referenced
Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY): The primary food security scheme through which improved-quality rice with significantly reduced broken grain content will be distributed to over 80 crore beneficiaries.
Cabinet Committee on Economic Affairs (CCEA): The high-level government body that approved the landmark reform to revise rice quality specifications for the first time in nearly thirty years.
Public Distribution System (PDS): The national food security framework for which new quality standards and QR-code-based traceability measures have been established to enhance transparency.
Ministry of Consumer Affairs, Food & Public Distribution: The central ministry responsible for the implementation of the new rice quality policy and its phased rollout across procuring states.
Ministry of Consumer Affairs, Food & Public Distribution
Government approves supply of improved-
quality rice under PMGKAY; over 80 crore
beneficiaries to receive better-quality rice
Broken grain content reduced to 10% in raw rice and 5% in
parboiled rice; phased rollout to begin from KMS 2027–28
Reform to enhance food quality, improve operational
efficiency, strengthen transparency and generate annual
savings of around ₹2,161 crore
प्रव तथ: 02 JUL 2026 3:33PM by PIB Delhi
The Cabinet Committee on Economic Affairs (CCEA) has approved a landmark reform to improve the
quality of rice supplied under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and Other
Welfare Schemes.
For the first time in nearly three decades, the Government has revised the quality specifications of rice
supplied under the Public Distribution System ensuring that beneficiaries receive rice with substantially
lower broken grain content while maintaining their existing entitlements.
Under the approved policy:
1. Raw rice supplied under PMGKAY will contain up to 10% broken grains, replacing the existing
specification of up to 25%.
2. Parboiled rice will contain up to 5% broken grains, replacing the existing specification of up to
16%.
Procurement of improved-quality rice will commence immediately and will be rolled out across all
procuring States by the Kharif Marketing Season (KMS) 2027–28 in a phased manner.
Distribution of improved-quality rice under PMGKAY and Other Welfare Schemes will also be
undertaken in a phased manner, ensuring a smooth transition to the revised specifications across all States.
Better quality for beneficiaries
The decision reflects the Government’s commitment not only to ensuring food security but also to
improving the quality of food grains supplied to more than 80 crore beneficiaries under PMGKAY and
Other Welfare Schemes. Beneficiaries will receive rice with better grain integrity, improved appearance
and higher consumer acceptability without any change in their entitlement.
Productive utilisation of broken riceUnder the revised specifications, the broken rice generated during milling will be separated and utilised
productively for other purposes . This will ensure that superior edible rice reaches beneficiaries under
PMGKAY.
Fiscal and operational gains
The reform is expected to lead to rationalisation of transportation, storage and handling costs, as broken
rice will be auctioned directly from millers’ premises. Jute bag requirements will also reduce, with broken
rice being stored in HDPE bags. This is expected to lead to annual cost rationalisation of Rs 2161 crore
through reduced logistics, storage and packaging cost. In addition, the sale of broken rice will generate
additional revenue, further helping to reduce the food subsidy burden.
Pilot Implementation
The proposal has already been validated through pilot implementation in multiple States like Haryana,
Andra Pradesh, Punjab, Orissa, Telangana and Chhattisgarh. The pilot has demonstrated the operational
feasibility of producing improved-quality rice at scale. Following the Cabinet approval, the improved-
quality rice generated under the pilot will also be supplied to beneficiaries under PMGKAY and Other
Welfare Schemes.
Strengthening Transparency
The reform also envisages QR-code tagging of rice bags to enable end-to-end traceability across the
supply chain, strengthening transparency, accountability and inventory management in the Public
Distribution System, effectively plugging any scope for leakages.
The Government has ensured food security for every eligible household. The next step is to achieve food
security with improved quality. This historic decision ensures that poor families receive better-quality rice
with dignity while also improving efficiency, transparency and fiscal prudence in foodgrain management.
Under the visionary leadership of Hon'ble Prime Minister Shri @narendramodi ji,
the Union #Cabinet has taken a historic and transformative decision to further
strengthen India's food security architecture.
For the first time in nearly three decades, the quality standards for… pic.twitter.co
m/zFJ5SWC0Wc
— Pralhad Joshi (@JoshiPralhad) July 1, 2026
Key Highlights
First reduction in permissible broken rice percentage in nearly 30 years.
Up to 10% broken in raw rice and 5% broken in parboiled rice.
Better-quality rice for over 80 crore PMGKAY beneficiaries.
Productive utilisation of resultant broken rice for industrial uses.
QR-code based traceability to strengthen transparency in PDS.
***
RT/ IA/ RP
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