One Nation One Ration Card System – Economics

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Finance Minister recently announced the national rollout of a ‘One Nation, One Ration Card’ system in all states and UTs by March 2021.

ONORC

Under this, a beneficiary will be able to buy subsidised foodgrains from any FPS across the country.
Based on a technological solution, a beneficiary will be identified through biometric authentication.
This will be done with the electronic Point of Sale (ePoS) devices installed at the FPSs.
The person can purchase the quantity of foodgrains to which she is entitled under the NFSA.

Under the National Food Security Act (NFSA), 2013, about 81 crore persons can buy subsidized food grain from their designated Fair Price Shops (FPS) of the Targeted Public Distribution System.
About 23 crore ration cards have been issued to nearly 80 crore beneficiaries of NFSA in all states and UTs.
Currently, if a person migrates from one state to another, she is unable to purchase subsidised food grains from a PDS shop in her new locality.
But, under the ‘ONORC’ system, the beneficiary will be able to buy subsidised food grains from any FPS across the country.
It will identify a beneficiary through biometric authentication on electronic Point of Sale (ePoS) devices installed at the FPSs.
It will enable that person to purchase the quantity of food grains to which she is entitled under the NFSA.

Aimed at providing intra-state as well as inter-state portability of ration cards.
The Integrated Management of PDS (IM-PDS) portal would provide the technological platform for the inter-state portability of ration cards.
This would enable a migrant worker to buy foodgrains from any FPS across the country.
The other portal (annavitran.nic.in) hosts the data of distribution of foodgrains through E-PoS devices within a state.
The Annavitran portal enables a migrant worker or his family to avail the benefits of PDS outside their district but within their state.
A person can buy her share of foodgrains as per her entitlement under the NFSA, wherever she is based.
And, the rest of her family members can purchase subsidised foodgrains from their ration dealer back home.

Inefficiencies leading to leakages.
To plug the leakages and make the system better, the government started the reform process.
Used a technological solution involving the use of Aadhaar to identify beneficiaries.
Under the scheme, the seeding of ration cards with Aadhaar is being done.
PoS machines are being installed at all FPSs across the country.
Once 100% of Aadhaar seeding and 100% installation of PoS devices is achieved, the national portability of ration cards will become a reality.
It was initially proposed to nationally rollout the ‘One Nation, One Ration Card’ scheme by June 1, 2020.

So far, 17 states and UTs have come on board to roll out the inter-state portability of ration cards under the NFSA.
Three more states are expected to come on board by June 1, taking the number of States and UTs to 20 under the ONORC System.
These three states are Odisha, Mizoram, and Nagaland.
Number of transactions done through using this facility has been low so far.
Number of transactions in intra-state ration card portability is quite high.
According to data available on the IMPDS portal, only 275 transactions have been done until May 14.
The data available on the Annavitaran portal shows that about one crore transactions took place using the facility last month.
It means that usages of intra-state ration card portability are way higher than the inter-state portability.