Removing of Ineligible Beneficiaries from NFSA List

Syllabus: GS3/Food Security

Context

• The Union Government has removed around 2.25 crore ineligible beneficiaries from the free monthly ration scheme under the National Food Security Act (NFSA) over the past four to five months.

Overview of the National Food Security Act (NFSA), 2013

• It represents a shift from a welfare-based approach to a rights-based framework, as the right to food is implicit in the right to life under Article 21 of the Indian Constitution.
• It aims to provide subsidized foodgrains to a large portion of India’s population. It amounts to roughly 81.35 crore people under the Targeted Public Distribution System (TPDS), based on the 2011 Census data. It covers:
  • Up to 75% of the rural population;
  • Up to 50% of the urban population;
• Categories of Beneficiaries: The Act divides beneficiaries into two main groups:
  • Antodaya Anna Yojana (AAY) Households: Entitled to 35 kg of foodgrains per month.
  • Priority Household (PHH) Individuals: Entitled to 5 kg of foodgrains per person per month.
• Currently, free foodgrains (wheat and rice) are distributed every month to poor households under these categories.

Scale of Distribution

• India currently has over 19 crore ration card holders, and around 5 lakh fair price shops operating across States and Union Territories.
  • This vast network plays a vital role in ensuring food security for millions of citizens every month.
• It leverages the existing infrastructure of the Public Distribution System (PDS) and integrates schemes like the Mid-Day Meal Scheme and Integrated Child Development Services (ICDS).

Targeting Only ‘Rightful’ Beneficiaries

• The government’s objective is to make the NFSA more focused and transparent, ensuring that only genuine beneficiaries—those who truly need assistance—receive the benefits.
• The Department of Food and Public Distribution identified ineligible individuals using various criteria and shared the lists with State governments for verification and deletion.
  • It used data triangulation and Aadhaar-based verification to identify and remove ineligible names.
• Key reasons for removal included:
  • Ownership of four-wheelers;
  • High income above the eligibility threshold;
  • Company directorships;
  • Deceased beneficiaries still listed under the scheme;

Continuous Verification and Updates

• The States and Union Territories are responsible for identifying beneficiaries, issuing ration cards, and conducting regular updates.
  • The deletion of ineligible beneficiaries and inclusion of new eligible ones is a continuous process.
• As of July 2025, the Union government informed Parliament that against the target of 81.35 crore beneficiaries, only 80.56 crore had been identified—leaving scope for the addition of 0.79 crore more beneficiaries.

Broader Implications

• Reduce fiscal leakage and improve targeting of subsidies;
• Free up resources for other welfare programs;
• Enhance public trust in government schemes.

Source: TH