This document summarizes the Indian government's response to Lok Sabha Starred Question No. 390, answered on August 20, 2025, regarding the Direct Benefit Transfer (DBT) scheme under the Public Distribution System (PDS).
Currently, the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) is implemented using Direct Cash Transfer in the Union Territories of Chandigarh, Puducherry, and part of Dadra Nagar Haveli. This implementation adheres to the Cash Transfer of Food Subsidy Rule, 2015, where cash equivalent to the food subsidy is directly deposited into the bank accounts of eligible households, enabling them to purchase food grains from the open market. The scheme is optional for States/UTs and requires written consent from the State Government for implementation in identified areas.
The primary objectives of implementing DBT in the context of food security and subsidy delivery are to: reduce the need for extensive physical movement of food grains; provide beneficiaries greater autonomy in choosing their consumption basket; enhance dietary diversity; reduce leakages in the system; facilitate better targeting of beneficiaries; and promote financial inclusion. Observed outcomes in implemented areas include savings due to the elimination of costs associated with procurement incidentals, handling, storage, movement, distribution, and other administrative overheads.
The response clarifies that the DBT scheme is not currently implemented in the State of Andhra Pradesh.
Key Entities Referenced
Direct Benefit Transfer DBT: A scheme under the Public Distribution System (PDS) that transfers cash equivalent of subsidy into the bank accounts of eligible households.
Public Distribution System PDS: A government-run system for distributing food and other essential items to the public at subsidized prices.
Andhra Pradesh: A state in India where the DBT scheme is not implemented.
Pradhan Mantri Garib Kalyan Anna Yojana PMGKAY: A food security scheme being implemented in Direct Cash Transfer mode in some Union Territories.
Chandigarh: A Union Territory in India where PMGKAY is being implemented in Direct Cash Transfer mode.
Puducherry: A Union Territory in India where PMGKAY is being implemented in Direct Cash Transfer mode.
Dadra Nagar Haveli: A Union Territory in India where PMGKAY is partly being implemented in Direct Cash Transfer mode.
LOK SABHA: The lower house of the Parliament of India, where the starred question regarding the DBT scheme was addressed.
GOVERNMENT OF INDIA
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION
LOK SABHA
STARRED QUESTION NO. 390
TO BE ANSWERED ON 20TH AUGUST, 2025
DBT SCHEME UNDER THE PDS
*390 SHRI LAVU SRI KRISHNA DEVARAYALU:
Will the Minister of CONSUMER AFFAIRS. FOOD AND PUBLIC DISTRIBUTION
be pleased to state:
(a) the details of States and Union Territories currently implementing Direct Benefit Transfer
(DBT) scheme under the Public Distribution System (PDS);
(b) the primary objectives behind DBT scheme implementation in the context of food security
and subsidy delivery;
(c) the key benefits or outcomes observed so far from its implementation; and
(d) whether the State of Andhra Pradesh has implemented this scheme in food subsidy
distribution and if so, the district-wise data of beneficiaries and transfers made thereunder?
ANSWER
MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION AND
MINISTRY OF NEW AND RENEWABLE ENERGY
(SHRI PRALHAD JOSHI)
(a) to (d): A statement is laid on the Table of the HouseSTATEMENT REFERRED TO IN REPLY TO PARTS (a) To (d) of STARRED
QUESTION NO. 390 DUE FOR ANSWER ON 20.08.2025 IN THE LOK SABHA.
(a): Pradhan Manta Garib Kalyan Anna Yojana (PN4GKAY) is being implemented in Direct
Cash Transfer mode in the UTs of Chandigarh, Puducheny and part of Dadra & Nagar Haveli as
per the provisions of Cash Transfer of Food Subsidy Rule, 2015 under which cash equivalent of
subsidy is being transferred into the Bank accounts of eligible households to enable them to
purchase foodgrains from open market. The Scheme is optional for States/UTs and operates in
"Identified areas” in a State or Union territory or any specified area within the State or Union
territory for which there is a written consent of the State Government for implementation of the
Scheme.
(b) & (c): The Direct Benefit Transfer (DBT) (i) reduce the need for huge physical movement of
foodgrains (ii) provide greater autonomy to beneficiaries to choose their consumption basket (iii)
enhance dietary diversity (iv) reduce leakages (v) facilitate better targeting (vi) promote financial
inclusion.
In the chosen areas, savings have accrued on account of no costs incurred on procurement
incidentals, handling, storage, movement, distribution and other administrative overheads, in the
direct benefit transfer.
(d): No Sir, DBT scheme is not being implemented in the State of Andhra Pradesh.
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