Technical Network on Poverty Analysis (THINK-PA)

The challenges of India’s food policy: promises and limits of digital solutions

04/10/2024

On September 23, the Technical Network on Poverty Analysis (THINK-PA) organized an insightful seminar on India’s food policy challenges delivered by Professor Reetika Khera. The presentation focused on the National Food Security Act (NFSA) and the Public Distribution System (PDS).  

Launched in 2013, the NFSA stands as one of the world’s largest social safety nets, providing subsidized food grains to 75% of India’s rural population and 50% of its urban population. Despite these achievements, Khera highlighted that major obstacles remain.  

Khera explained that by loosening eligibility criteria, the NFSA expanded food subsidy coverage to nearly universal coverage. The results have been promising: leakage rates —measured by the gap between administrative records on food supply and household survey data—dropped significantly from 2004 to 2023—a sign of the PDS’s improved efficiency. However, structural and technological issues still hinder the system’s full potential.  

A central point of discussion was the Aadhaar-based biometric system authentication introduced in 2009 to prevent fraud in the PDS, such as identity manipulation and overcharging . To access food benefits, beneficiaries were required to link their ration cards to their Aadhaar Identifications Documents (IDs). Though this was aimed at improving transparency, the Aadhaar requirement unexpectedly led to mass exclusion of those who were unable to link ration cards to Aadhaar IDs, especially in rural communities where internet connectivity and electricity remain unreliable.   

Khera described this situation as “Pain with no gain,” arguing that while the system minimized minor fraud, it often inadvertently blocked access to those most in need without substantially reducing corruption. 

Drawing from field research, Khera shared that in many areas, beneficiaries struggled with the technical requirements of the Aadhaar system. Linking cards and fingerprint verification frequently failed, which left some unable to access their food entitlements.  

Surprisingly, communities relying on traditional, non-digital processes experienced fewer transaction failures, shorter waiting time, and smoother food distribution. 

In her closing remarks, Khera highlighted other significant issues within India’s food policy, warning of the influence of corporate interests, particularly from agrifood and tech sectors. These may prioritize profit over public welfare, pushing “solutions” that don’t necessarily align with local needs.  

Instead, Khera urged policymakers to concentrate on improving the quality of food provided to beneficiaries, rather than relying on tech fixes that may not work for everyone. She also called on multilateral organizations to be more cautious and consider local context before recommending tech-based solutions. 

Khera’s message was clear: while India’s food policies have made remarkable strides, especially with the NFSA, critical gaps remain, particularly in adapting technology to the realities of rural communities. For true progress, she emphasized, policies should prioritize fair access to quality food over a reliance on digital solutions.