Anna-Chakra Tool Optimises PDS Supply Chain, Saves ₹250 Cr Annually

The “Anna-Chakra” tool was initially targeted for implementation in 31 States/UTs. As of now, it has been adopted in 30 States and UTs, with only Manipur yet to roll it out.

In a major step towards modernising India’s food security architecture, the Government of India has successfully rolled out the “Anna-Chakra” Supply Chain Optimisation Tool across 30 States and Union Territories (UTs) under the Public Distribution System (PDS). The initiative, aimed at improving efficiency, reducing costs, and lowering the environmental footprint of food distribution, is expected to save the exchequer ₹250 crore annually through streamlined transportation routes and reduced fuel consumption.

The details were shared by Smt. Nimuben Jayantibhai Bambhaniya, Union Minister of State for Consumer Affairs, Food and Public Distribution, in a written reply to the Rajya Sabha.

Implementation Status Across India

The “Anna-Chakra” tool was initially targeted for implementation in 31 States/UTs. As of now, it has been adopted in 30 States and UTs, with only Manipur yet to roll it out.

The states and UTs where the tool has been implemented include: Punjab, Telangana, Tamil Nadu, Rajasthan, Mizoram, Bihar, Sikkim, Gujarat, Andhra Pradesh, Nagaland, Chhattisgarh, Goa, Jharkhand, West Bengal, Himachal Pradesh, Meghalaya, Assam, Uttarakhand, Madhya Pradesh, Delhi, Jammu & Kashmir, Uttar Pradesh, Maharashtra, Arunachal Pradesh, Ladakh, Tripura, Kerala, Karnataka, Haryana, and Odisha.

This near-universal adoption underscores the government’s commitment to leveraging technology for the betterment of the PDS network, which serves as the backbone of India’s food security system.

Financial and Environmental Benefits

One of the most significant outcomes of the initiative has been the reduction in transportation costs, with estimated savings of ₹250 crore annually. These savings are achieved by optimising routes for the movement of food grains from warehouses to fair price shops, thereby minimising fuel usage and travel time.

Beyond cost efficiency, the optimisation also supports India’s climate change commitments. By cutting down on redundant travel and fuel consumption, the Anna-Chakra tool has contributed to a measurable reduction in CO₂ emissions, further aligning the PDS with India’s sustainability goals.

Transforming the Public Distribution System

The Public Distribution System (PDS) is one of the world’s largest social welfare schemes, providing subsidised food grains to over 800 million beneficiaries under the National Food Security Act (NFSA). However, inefficiencies in logistics and transportation have historically led to delays, wastage, and higher costs.

The Anna-Chakra optimisation tool addresses these challenges by:

• Mapping distribution routes through advanced data analytics.

• Reducing logistical redundancies in supply chains.

• Improving delivery timelines to fair price shops.

• Lowering operational costs for state governments.

• Enhancing transparency and accountability in food distribution.

By integrating technology into the PDS framework, the tool ensures that resources are utilised more effectively and that food grains reach beneficiaries on time.

Policy Significance and Future Prospects

The government’s focus on digitisation and optimisation of PDS operations reflects a broader policy push towards technology-driven governance. The near-complete rollout of Anna-Chakra demonstrates a successful example of cooperative federalism, with states actively adopting central initiatives to strengthen welfare delivery.

With Manipur as the only remaining state to implement the tool, efforts are expected to be made to achieve full nationwide coverage soon. Additionally, further upgrades and integration with other digital initiatives such as One Nation, One Ration Card (ONORC) may be explored to maximise benefits.

 

The Anna-Chakra Supply Chain Optimisation Tool represents a landmark in modernising India’s food distribution network. By ensuring financial savings, environmental sustainability, and greater efficiency, it strengthens the PDS as a reliable pillar of food security while reinforcing India’s commitment to sustainable development and climate responsibility.