FNB News - Centre sets 708.64 LMT paddy procurement target for KMS 2026–27

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POLICY & REGULATIONS

Centre sets 708.64 LMT paddy procurement target for KMS 2026–27

Friday, 04 September, 2026, 08 : 00 AM [IST]

Our Bureau, Mumbai

The Department of Food & Public Distribution (DFPD), Government of India, has fixed the paddy procurement target for the upcoming Kharif Marketing Season (KMS) 2026–27 at 708.64 lakh tonnes (LMT), following discussions with States and Union Territories. The decision was taken at a meeting of State Food Secretaries chaired by DFPD Secretary Sanjeev Chopra in New Delhi on September 1, 2026. The meeting reviewed key issues related to foodgrain procurement, public distribution and storage, with senior officials from States/UTs and the Food Corporation of India (FCI) in attendance.

The meeting also reviewed the rollout of Improved Rice under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and other welfare schemes. Under the revised specifications, raw rice procured will contain up to 10 per cent broken grains, compared with the existing 25 per cent, while the limit for parboiled rice will be reduced to 5 per cent from 16 per cent. Procurement of Improved Rice will begin with KMS 2026–27 and will be expanded progressively across procuring States. States have been asked to assess their milling capacity, undertake necessary upgrades and prepare phased implementation plans. In addition, States have estimated procurement of 18.85 LMT of coarse grains during KMS 2026–27.

The government also reviewed procurement and distribution plans for coarse grains, millets and minor millets. During KMS 2025–26, 16.38 LMT of coarse grains and millets were procured, the highest level recorded in the past five years. Progress under the Procurement Centre Smart-Assessment Portal (PCSAP) was examined, including the introduction of AI-based image validation from KMS 2026–27. The meeting also discussed the proposed online physical verification of paddy at the end of the procurement season under the Joint Physical Verification (JPV) system.

Several State-level initiatives and best practices were recognised during the meeting. Andhra Pradesh was recognised for the Best Implementation of the Improved Rice Scheme, Punjab for Best Performance in JPV and PCSAP, Karnataka for Excellence in Procurement of Shree Anna, and Chhattisgarh as the first State to implement AgriStack in paddy procurement. Efforts relating to storage capacity and the Depot Darpan platform were also highlighted.

The meeting reviewed the New Storage Policy, which aims to address the mismatch between foodgrain procurement and offtake, regional imbalances and under-utilisation of storage facilities. The policy envisages creation of 131 LMT of additional storage capacity, comprising 111 LMT by States and 20 LMT by FCI. Identified States have been asked to submit time-bound action plans. States were also advised to onboard their foodgrain storage facilities on the Depot Darpan Portal, conduct warehouse self-assessments within prescribed timelines and utilise training and handholding support from the Central Warehousing Corporation (CWC), FCI and DFPD.

Technology-enabled foodgrain movement was another key focus of the meeting. The implementation of the Vehicle Location Tracking System (VLTS) for GPS-based, real-time tracking of foodgrain transportation under the Public Distribution System (PDS) was reviewed. States have been advised to complete implementation by December 2026, with identified States expected to complete the process by September 2026.

The Procurement Optimisation Tool, covering both Kharif and Rabi Marketing Seasons, was also reviewed. The tool has undergone security audit and has been installed in Punjab and Haryana. Other States have been asked to prepare and update Procurement Centre, Mill and Warehouse data on the system by September 15, 2026. The meeting further reviewed the integration of Anna Chakra with State Supply Chain Management Systems (SCMS) and VLTS to eliminate manual intervention in data exchange. Integration has been completed in six States, while the remaining States have been advised to complete it in phases by September and December 2026 and ensure that FPS, warehouse and commodity master data are verified and updated.

On PDS reforms, the meeting reviewed initiatives including SMART-PDS, SARTHAK-PDS, e-KYC and mobile number seeding, along with the Mera Ration and Anna Mitra mobile applications. Discussions also covered rationalisation of Fair Price Shops (FPSs), Central Bank Digital Currency (CBDC), identification of silent and duplicate beneficiaries, grievance redressal, intra-State movement, FPS dealer margins and strengthening of vigilance mechanisms.

The government will also expand the Digital Rupee-based Direct Benefit Transfer (DBT) pilot for FPS dealer margins. The pilot, already launched in Gujarat, Puducherry and Chandigarh & Dadra Nagar Haveli, will be extended to the entire Delhi State and two districts each in Andhra Pradesh, Jammu & Kashmir, Madhya Pradesh, Odisha, West Bengal and Tamil Nadu. A review workshop on the initiative is scheduled to be held in Gandhinagar, Gujarat, on September 11, 2026.

Under SARTHAK-PDS, the umbrella scheme for 2026–31 that integrates assistance to States for intra-State foodgrain movement and FPS dealer margins with the SMART-PDS technology layer, 100 per cent of the Mother Sanction has been issued to States and UTs for FY 2026–27.

The meeting also reviewed progress on ration card digitisation and beneficiary authentication. e-KYC coverage stood at 90.64 per cent as of July 30, 2026. A new Standard Operating Procedure (SOP) for e-KYC-based data replication and mobile-number seeding through ePOS has been rolled out to facilitate smoother delivery of foodgrains to beneficiaries. New SOPs for silent ration cards and duplicate beneficiaries, issued under the amended TPDS (Control) Order, 2015, provide for temporary disablement followed by a three-month e-KYC revalidation window. The functionality is scheduled to go live on SMART-PDS from October 1, 2026.

Strengthening vigilance mechanisms was also emphasised. States and UTs were advised to ensure the timely constitution and regular functioning of Vigilance Committees and submit prescribed status reports under Section 29 of the National Food Security Act (NFSA), 2013. They were also directed to operationalise Aadhaar-based authentication of foodgrain receipt at the Fair Price Shop level by Vigilance Committees and submit compliance reports within four weeks.