AP To Become First State To Roll Out Steam Rice Through PDS

Andhra Pradesh will pilot steam rice distribution through the Public Distribution System in Kakinada before expanding it across the state.

Update: 2026-07-28 18:11 GMT
Civil Supplies Minister Nadendla Manohar. (DC Image)

Andhra Pradesh will become the first state to distribute steam rice through the Public Distribution System, with Kakinada district chosen for a pilot project

Civil supplies minister Nadendla Manohar announced this in New Delhi on Tuesday.

His department had undertaken a detailed study to understand why beneficiaries were not fully utilising subsidised PDS rice despite the government providing a subsidy of `56 per kg. Feedback from experts, economists and consumers indicated a clear preference for steam rice.

“Hence, the government decided to replace the existing variety to improve utilisation and reduce diversion of subsidised grain,” the minister told the media at Andhra Bhavan.

The state had introduced steamed rice in 42,000 schools and 4,000 hostels under the Dokka Seethamma Mid-Day Meal Scheme, with farmers supplying 2.6 lakh metric tonnes of rice without seeking additional bonus.

Manohar said, “Encouraged by the Centre's positive response, the government will supply around 9,000 metric tonnes of steam rice every month to ration card holders, schools and hostels in Kakinada before expanding the initiative across the state.”

The Centre, he said, has also agreed to enhance AP’s boiled rice procurement quota by 20,000 metric tonnes, over and above the previously approved two lakh metric tonnes, enabling the government to honour its commitment to procure every grain produced by farmers.

To check rising prices, the government would sell BPT steam rice at `52 per kg and Grade-I raw rice at `50 per kg through 130 Rythu Bazaars and 500 special outlets from August 1. Approval has also been sought to sell Swarna variety rice stored in FCI godowns at `40 per kg.

Manohar said 1,000 Mee Marts, offering around 70 essential commodities at affordable prices, would be launched this quarter in partnership with the NCCF. The government also plans to distribute 500 grams of tur dal to every ration card holder through 30,000 fair price shops.

The Centre, he said, has cleared the release of `281 crore in pending funds. “Andhra Pradesh will also pilot RFID-based tracking of PDS rice in Kakinada and introduce a CBDC-based digital wallet system in the erstwhile Krishna and Visakhapatnam districts to improve transparency, strengthen the subsidy delivery mechanism and give beneficiaries greater flexibility in purchasing essential commodities.”

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