The Cabinet Committee on Economic Affairs (CCEA) has approved a significant reform aimed at improving the quality of rice distributed under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and other welfare schemes. The decision is expected to benefit more than 80 crore beneficiaries by ensuring the supply of rice with lower broken grain content.
It marks the first major revision to Public Distribution System (PDS) rice quality specifications in nearly 3 decades. The government said the reform will enhance food grain quality while maintaining the quantity of rice supplied to beneficiaries.
Under the revised specifications, the permissible broken grain content in raw rice has been reduced from 25% to 10%. For parboiled rice, the limit has been lowered from 16% to 5%.
The Ministry of Consumer Affairs, Food & Public Distribution stated that the changes are intended to improve grain quality, appearance and consumer acceptability. Procurement of higher-quality rice will begin immediately and will be implemented across procuring states in a phased manner by Kharif Marketing Season (KMS) 2027-28.
The reform focuses on supplying better-quality rice through government welfare programmes. The revised standards are expected to improve grain integrity by reducing the proportion of broken rice mixed with edible rice.
Instead of being distributed through the PDS, the separated broken rice will be channelled towards industrial and other permitted uses. This approach aims to ensure that beneficiaries receive rice with improved physical quality while maintaining existing distribution volumes.
Apart from improving rice quality, the policy is expected to generate operational efficiencies. The government estimates annual savings of around ₹2,161 crore through the rationalisation of transportation, storage and packaging costs.
Broken rice will be auctioned directly from millers' premises, reducing handling and storage requirements. Additionally, storing broken rice in HDPE bags instead of jute sacks is expected to further lower logistics expenses, while revenue generated from auctions could help reduce the food subsidy burden.
To strengthen transparency in the food distribution system, the government will introduce QR code tagging of rice bags. This measure is designed to provide end-to-end traceability throughout the supply chain, improving inventory management and helping prevent leakages.
The proposal has already been tested through pilot projects in Haryana, Andhra Pradesh, Punjab, Odisha, Telangana and Chhattisgarh. According to the government, these pilots demonstrated the feasibility of producing improved-quality rice on a large scale, and the rice generated during the pilot phase will also be supplied under PMGKAY and other welfare schemes.
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The approved reform represents a major update to India's food grain distribution framework. By reducing broken grain limits, the government aims to provide better-quality rice to more than 80 crore beneficiaries without altering allocation quantities.
The initiative also incorporates measures to improve efficiency, transparency and fiscal management through QR code tracking and improved handling of broken rice. With phased implementation planned through KMS 2027-28, the reform is expected to strengthen the quality and effectiveness of the country's food security programmes.
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Published on: Jul 2, 2026, 4:57 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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