Centre sets 708.64 LMT paddy target, pushes storage and tech upgrades
National food secretaries' meet fixes KMS 2026-27 paddy procurement at 708.64 LMT, approves new storage policy and tech-driven PDS reforms.
The Department of Food and Public Distribution (DFPD) convened a conference of State Food Secretaries in New Delhi on 1 September 2026, chaired by Secretary Sanjeev Chopra, to review procurement, public distribution, and storage of foodgrains. Officials from the Food Corporation of India (FCI) and all States and Union Territories participated.
For the upcoming Kharif Marketing Season (KMS) 2026-27, the paddy procurement target has been fixed at 708.64 LMT. The meeting also reviewed the rollout of Improved Rice under PMGKAY and other welfare schemes. Under the revised specification, raw rice will now permit up to 10% broken grains (down from 25%), while parboiled rice will allow 5% (down from 16%). Procurement under the new standard begins from KMS 2026-27 and will be expanded progressively, with States asked to assess milling capacity and prepare phased implementation roadmaps.
Coarse grain procurement for KMS 2026-27 is estimated at 18.85 LMT. The conference noted that 16.38 LMT of coarse grains and millets were procured in 2025-26 — the highest in five years. Progress on the Procurement Centre Smart-Assessment Portal (PCSAP) was reviewed, including AI-based image validation to be introduced from KMS 2026-27. Joint Physical Verification (JPV) of paddy will move online starting this season.
State best practices were recognised: Andhra Pradesh for Improved Rice implementation, Punjab for JPV and PCSAP, Karnataka for Shree Anna procurement, and Chhattisgarh for being the first State to deploy AgriStack in paddy procurement.
On storage, the New Storage Policy aims to add 131 LMT capacity — 111 LMT by States and 20 LMT by FCI — to address procurement-offtake mismatches and regional imbalances. States were asked to submit time-bound action plans and onboard facilities on the Depot Darpan portal.
For foodgrain movement, States were advised to complete Vehicle Location Tracking System (VLTS) implementation by December 2026, with some States targeted for September 2026. The Procurement Optimisation Tool, already installed in Punjab and Haryana, must have data updated by other States by 15 September 2026. Anna Chakra integration with State SCMS and VLTS is complete for six States, with the rest to follow by September and December 2026.
On PDS reforms, e-KYC coverage stood at 90.64% as of 30 July 2026. A new SOP for e-KYC-based data replication and mobile-number seeding through ePOS was rolled out. Silent and duplicate ration cards will be temporarily disabled, with a three-month e-KYC revalidation window, effective in SMART-PDS from 1 October 2026.
The Digital Rupee-based DBT pilot for FPS dealer margins, already launched in Gujarat, Puducherry, and Chandigarh & Dadra Nagar Haveli, will extend to Delhi and two districts each in Andhra Pradesh, Jammu & Kashmir, Madhya Pradesh, Odisha, West Bengal, and Tamil Nadu. A review workshop is set for 11 September 2026 in Gandhinagar.
SARTHAK-PDS, the umbrella scheme for 2026-31, has issued 100% of Mother Sanction to States/UTs for FY 2026-27. States were also directed to constitute Vigilance Committees under Section 29 of NFSA, 2013, operationalise Aadhaar-based authentication at FPS level, and submit compliance reports within four weeks.