e-rupee project for food grain subsidy to be expanded across country: Union Minister in Puducherry

Union Minister announces nationwide expansion of e-rupee food subsidy program after successful pilot projects in Puducherry and Ahmedabad.

Union Minister for Consumer Affairs, Food and Public Distribution Pralhad Joshi on Thursday (February 26, 2026) said the Central Bank Digital Currency (CBDC)-based Food Subsidy Distribution programme under the Pradhan Mantri Garib Kalyan Anna Yojana will be extended to all States after completing the pilot projects.

Speaking after inaugurating the CBDC-based Direct Benefit Transfer in Puducherry, the Union Minister said the programme was first launched as a pilot project in Ahmedabad, Gujarat. “Today (February 26), we have launched the programme in Puducherry as a pilot project. Next, it will be taken to Chandigarh and Dadra and Nagar Haveli, before being expanded to other States,” he said. 

The Minister said the initiative was envisioned as per the firm belief of Prime Minister Narendra Modi that “every grain, every rupee, and every entitlement” should reach the rightful beneficiary in the country. Under the initiative, food subsidy would be credited to the digital wallets of beneficiaries in the form of digital currency tokens issued by the Reserve Bank of India, he said. 

Mr. Joshi said the initiative by the Central government would pave the way for a fully transparent, leakage-free, and technology-driven public distribution system. “We have the largest free-ration distribution programme. Around 80 crore Indians are getting 5-kg free food grains per month. The initiatives have helped lift 25 crore people out of multi-dimensional poverty in the past 11 years. Also, recent studies show that people are diverting 50% of household expenditure for other requirements, including for buying milk, because of the availability of free food grains every month,” the Union Minister said. 

Lt. Governor K. Kailashnathan, Chief Minister N. Rangasamy, Speaker R. Selvam, and Minister for Public Works K. Lakshminarayanan were among those present at the event.