Kerala’s Public Distribution Department is set to revolutionize the ration subsidy system by launching direct bank transfers (DBT) for beneficiaries. Starting March 2025, the scheme will be piloted in 14 taluks, including Mannarkkad, Nilambur, Kozhencherry, Chalakudy, and Devikulam, among others. Officials have finalized discussions for the trial rollout, which aligns with the Central Public Distribution Guidelines already in use in other states.
Under the new DBT system, beneficiaries will receive a fixed subsidy amount directly into their bank accounts, replacing the traditional method of distributing food grains like rice through fair price shops. Initially, the focus will be on backward class cardholders. This initiative is expected to streamline subsidy delivery, offering greater transparency and efficiency.
Similar DBT models have proven successful in states such as Maharashtra, Assam, and Andhra Pradesh, as well as union territories like Chandigarh and Puducherry. For instance, Puducherry beneficiaries received Rs 22 per kilogram of rice and Rs 16 per kilogram of wheat. Additionally, DBT has shown significant efficiency in sectors like cooking gas distribution.
Despite its advantages, the initiative has faced opposition from ration traders, who fear the system could disrupt Kerala’s public distribution network. However, with the current cost of delivering one kilogram of rice pegged at Rs 99.70, the DBT system offers a cost-effective and modern alternative for subsidy distribution.
