Chandigarh, August  2026: A new technology-driven initiative aimed at making foodgrain distribution more transparent and secure was launched in Chandigarh with the introduction of a Central Bank Digital Currency (CBDC)-based Direct Benefit Transfer (DBT) pilot under the Public Distribution System (PDS).

Union Minister for Agriculture and Farmers’ Welfare and Rural Development Shri Shivraj Singh Chouhan launched the initiative at Tagore Theatre in Chandigarh. Punjab Governor Shri Gulab Chand Kataria chaired the programme, while Union Minister Shri Pralhad Joshi and Minister of State for Food and Public Distribution Smt. Nimuben Jayantibhai Bambhaniya were also present.

CBDC technology aimed at improving foodgrain delivery

The new system is designed to ensure that financial assistance meant for food purchases reaches eligible beneficiaries directly while incorporating safeguards over how the funds are used.

Unlike conventional cash transfers, the CBDC-based mechanism is intended to restrict the use of the benefit to foodgrains and essential food commodities. This could reduce the possibility of funds being diverted for unrelated expenses while maintaining direct access for beneficiaries.

The pilot also seeks to provide consumers with greater flexibility in choosing their food requirements. Along with staples such as wheat and rice, beneficiaries may be able to select pulses and other essential food products.

Chandigarh selected for the pilot

The Chandigarh initiative is being positioned as a potential model for wider implementation. Officials will assess the functioning of the system, identify practical challenges and examine how the technology can be expanded to other parts of the country.

The initiative reflects the government's broader effort to combine digital technology with welfare delivery mechanisms and reduce the role of intermediaries.

Focus on farmers and food security

Speaking at the event, Shri Chouhan reiterated that farmers' welfare and national interest would remain central to agricultural and food-security policies. He highlighted India's foodgrain availability and said the country is in a position to meet domestic requirements while also responding to export opportunities when appropriate.

He also referred to the continued delivery of welfare programmes such as PM-KISAN, stressing the importance of ensuring that benefits reach intended recipients efficiently.

DBT and technology-driven safeguards

Direct Benefit Transfer has already changed the way several government benefits are delivered by transferring assistance directly to beneficiaries' accounts. The new CBDC-based approach attempts to address one of the limitations associated with unrestricted cash transfers: the possibility that funds may be spent on purposes other than those intended under a particular welfare programme.

By combining digital currency with transaction-level safeguards, the pilot seeks to connect government assistance more closely with the purchase of essential food items.

Free foodgrain programme highlighted

The Union Minister also highlighted the importance of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) as a major social-security measure. He noted that access to free foodgrains not only supports household food security but can also reduce family expenditure, allowing households to allocate their limited resources to education and other essential needs.

The broader objective, he said, is to ensure that vulnerable families do not face food shortages.

From government files to citizens' lives

The Chandigarh launch reflects a broader emphasis on making government programmes more visible through tangible benefits for citizens. The use of digital technology in welfare delivery is expected to improve transparency, traceability and efficiency when implemented effectively.

If the pilot proves successful, Chandigarh could provide valuable lessons for extending CBDC-enabled food subsidy mechanisms to other regions.

The programme also included an appeal for citizens to contribute to nation-building, participate in the Har Ghar Tiranga campaign and support environmental initiatives such as tree planting.

The government has simultaneously set wider development objectives, including its Lakhpati Didi initiative aimed at improving the economic prosperity of rural women.

The Chandigarh pilot therefore represents an important experiment at the intersection of digital payments, food security and welfare delivery, with its eventual success likely to depend on beneficiary accessibility, technological reliability and effective implementation on the ground.