Introduction
The "One Nation One Ration Card" (ONORC) scheme, launched in 2020 under the National Food Security Act (NFSA), represents a transformative shift in India's public distribution system (PDS). This initiative by the Government of India is designed to ensure inclusivity, welfare, and food security for all NFSA beneficiaries, enabling them to access their entitled food grains from any ePoS-enabled Fair Price Shop (FPS) across the country, irrespective of their location. This addresses the long-standing challenges faced by migrant workers, who often struggle to access subsidized food grains when moving across state lines for employment. By leveraging technology and implementing IT-driven systems, ONORC aims to modernize the PDS, prevent pilferage and duplication of ration cards, and ensure that benefits reach the rightful recipients.
The NFSA covers up to 75% of the rural population and 50% of the urban population under the Antyodaya Anna Yojana (AAY) and priority households, making ONORC a crucial intervention for a large segment of the population. With nearly 99.8% of ration cards seeded with Aadhaar, the scheme has facilitated transparent transactions and ensured food security for approximately 80 crore beneficiaries nationwide. However, despite its potential, the effective implementation of ONORC in rural areas faces unique challenges.
The scheme builds upon the Integrated Management of Public Distribution System (IM-PDS), launched in 2018, which aimed to address the limitations of the traditional PDS, such as exclusion errors, poor quality of food grains, diversion of subsidized food grains, and lack of transparency. IM-PDS sought to implement nationwide portability, create a national-level data repository, integrate state PDS systems, and employ advanced data analytics to improve PDS operations. The ONORC scheme leverages the existing Aadhaar-based Direct Benefit Transfer (DBT) system. It has also given the beneficiaries the opportunity to choose their own dealer if there is any case of foul play. Further, the Commencement of a dedicated toll-free number 14445 for ONORC operations has also assisted the beneficiaries in addressing their issues. This scheme has garnered attention for its potential to empower migrants, reduce food insecurity, and promote transparency in the PDS. The Department of Food & Public Distribution, in association with NIC, has launched the "MERA RATION" mobile application to further benefit NFSA beneficiaries.
Figure 1: Illustration of ONORC Statistics
Literature Review
The ration card system in India was introduced during the Second World War in 1945 as a measure to cope with food scarcity and rationing caused by the Bengal famine of 1943. The system commenced operating in its current form in June 1947, after India’s independence, for distributing basic ration items to the poor at subsidized rates through an established mechanism of shops called Fair Price Shops (FPS) under the Public Distribution System (PDS). Over time, the scheme required a complete overhaul to effectively deliver its intended objectives. Consequently, in 2019, a new scheme aligned with contemporary needs and addressing the shortcomings of the erstwhile PDS was launched, named One Nation One Ration Card (ONORC). This initiative was launched under the aegis of the National Food Security Act (NFSA) and aimed to ensure food security by streamlining the PDS and facilitating seamless access to rations for eligible beneficiaries across India at subsidized rates.
Under the new system, the central and state governments jointly operate the PDS. The respective state government is responsible for identifying entitled persons and ensuring distribution, while the central government is tasked with procuring and allocating the commodities. The ONORC scheme aims to provide nationwide portability of ration cards by integrating various state-level ration cards into a single unified platform. Through this integration, all eligible ration card holders can draw their authorized rations from any FPS in India, regardless of their location or state of origin. Prior to the commencement of ONORC, beneficiaries could only access their entitlements at the FPS where they were registered. The scheme was designed specifically to benefit migrant households, both within and outside the state, enabling them to avail themselves of their entitlements while on the move. For the first time, the scheme also offered beneficiaries a choice in availing their rations, whether they were migrating or at home. The PDS aims to provide food security and welfare to millions of people, especially for beneficiaries residing in areas that are distant and characterized by inhospitable terrain and weather conditions.
The Ministry of Consumer Affairs, Food and Public Distribution (2019), in its press release through the Press Information Bureau, quoted the Hon’ble Prime Minister of India: "With the help of One Nation-One Ration Card, we have ensured free ration to more than 80 crore countrymen. This is the wonder of technology." The press release further stated that the scheme is technology-driven, implemented for the nationwide portability of ration cards to address the difficulties faced by migrants. This system for intra-state and inter-state portability of ration cards was launched by the Government of India on August 9, 2019. The release elucidated the genesis and advantages of the scheme, emphasizing that the digitization of the distribution system in the country must be taken to the next level to ensure food security.
This system also enables entitled persons who have moved out of their hometowns to access their entitled rations from the Fair Price Shop of their choice across India by verifying their biometrics on an ePoS device. This initiative also provides states and union territories (UTs) the ability to serve many more beneficiaries without incurring any additional burden. Furthermore, this mechanism prevents unauthorized transshipment or pilferage of rations.
Dalberg, Kantar, and Omidyar Network India (2023) conducted a collaborative study identifying the successes and gaps of the ONORC scheme. Their study focused on five states—Andhra Pradesh, Karnataka, Rajasthan, Uttar Pradesh, and Jharkhand—where the ONORC rollout was at different stages. These states also had significant inter- and intra-state migrant populations. The study examined whether non-migrant beneficiaries were also exercising the choice now being offered. Although there is widespread knowledge of ONORC in both rural and urban areas, barriers to accessing the scheme persist. Many entitled persons were unable to access the scheme primarily due to mismatches in ID-related documentation. Beneficiaries who wanted to update their ration cards (for instance, to add new members or amend certain details) often felt overwhelmed by the procedure or were unable to compile all the required documents.
Derrek Xavier (2022) also addresses the gaps in the One Nation One Ration Card scheme and offers recommendations for efficient implementation. He notes that more than eight lakh people could benefit from the scheme; however, gaps persist in its implementation that need to be addressed. He emphasizes that a robust, quantitative understanding of the frontline experience, which includes both beneficiaries and PDS dealers, is missing. He believes that the main reason for the low uptake of the scheme is the lack of awareness, particularly in rural India. He recommends that beneficiaries be made aware of the availability of portability through their preferred channels, including PDS dealers and news media. Additionally, he suggests improvements in technology at FPS to facilitate better connectivity, which would minimize the risk of connectivity-induced transaction failures.
Mahendran and Indrakant (2021) argue that many welfare schemes are designed with good intentions but encounter expected and unexpected hurdles during implementation. They illustrate this point with an analogy: in a vast country like India, each state has its own traffic rules. Some states follow the rule of "keep to the left," while others follow "keep to the right." A driver must switch to the local rule upon entering another state, which can lead to confusion and accidents. This line of thinking may have motivated the Union government to develop the idea of ONORC.
Gupta, Soni, Rautela, and Srinivas (2023) explain the genesis, broad outlook, and impact of the scheme while recommending suggestions for its more effective implementation. They state that the One Nation One Ration Card scheme allows interstate, inter-district, and intra-district domestic migrant workers to access subsidized food grain entitlements at any electronic point-of-sale-enabled Fair Price Shop (FPS), irrespective of their place of domicile. They further note that the majority of migrants are aware of the scheme, and many beneficiaries—particularly intra- and inter-district migrants—are utilizing it. The rations are perceived to be timely and of adequate quality, leading to a reduction in food expenses for vulnerable migrant households.
Additionally, the Asian Development Bank (ADB), under its COVID-19 Active Response and Expenditure Support (CARES) programme in April 2020, extended $1.5 billion in assistance to the Pradhan Mantri Garib Kalyan Yojana (PMGKY), the Government of India’s $23 billion pro-poor scheme. During the pandemic, the PMGKY enabled free food and cooking gas distribution to low-income and vulnerable populations, including women. A technical assistance (TA) component attached to the CARES loan was also extended to develop the operational framework and strengthen the efficiency in targeting, delivery, and monitoring and evaluation of select PMGKY schemes, including ONORC, for both existing and new pandemic-affected beneficiaries.
Gupta, Soni, Rautela, and Srinivas (2023) found that their report recommended several suggestions for improvement, which included: (a) raising dealer awareness regarding the provisions in the ONORC for procuring food grains in advance to avoid procurement through informal systems; (b) allocating buffer stock to FPSs to ensure continuous supplies; and (c) improving access for women by undertaking targeted awareness campaigns and training sessions for women beneficiaries, covering all key aspects of the scheme.
The Problem
The One Nation One Ration Card (ONORC) scheme was introduced to tackle the challenges of food security and accessibility for vulnerable populations, particularly migrant workers, by enabling the portability of ration cards across India. Despite its potential benefits, the implementation of the ONORC scheme has encountered significant barriers, including technological challenges, lack of awareness among beneficiaries, and issues related to ID documentation. These challenges have resulted in many eligible beneficiaries being unable to access their entitled rations, undermining the scheme's objectives of ensuring food security and welfare for all.
While existing literature has identified some successes and gaps within the ONORC scheme, there remains a notable lack of empirical research that thoroughly examines the real-world implications of the scheme across diverse socio-economic contexts, such as Punjab and Meghalaya. Most studies focus on theoretical aspects or specific case studies without providing a holistic view of the scheme's impact in varied geographical landscapes. Additionally, there is insufficient exploration of the barriers faced by marginalized groups, such as women and the elderly, in accessing their entitlements under the ONORC scheme. This study aims to fill these gaps by providing a detailed assessment of the ONORC scheme's effectiveness in enhancing food security and accessibility for rural beneficiaries in Punjab and Meghalaya, thereby contributing to the broader discourse on food security and welfare in India.
Objectives and Research Questions
The primary objective of this study was to evaluate the impact of the ONORC scheme on food security and accessibility for rural beneficiaries in Punjab and Meghalaya. Specifically, the study aimed to assess how effectively the ONORC scheme had improved access to subsidized food grains, particularly for migrant workers and low-income households. Additionally, it sought to identify the challenges encountered during the scheme's implementation, including technological barriers and awareness gaps. The study also aimed to evaluate beneficiary satisfaction regarding the scheme and to provide actionable recommendations for enhancing its effectiveness.
To achieve these objectives, the study addressed the following research questions:
• What impact did the ONORC scheme have on food security among rural beneficiaries in Punjab and Meghalaya?
• What challenges were faced during its implementation in these regions?
• How did beneficiaries perceive the effectiveness of the scheme in improving their access to food?
• What recommendations could be made to improve the ONORC scheme based on the findings of this study?
Methodology
This study employed a mixed-methods approach to assess the impact of the ONORC scheme on food security and accessibility for rural beneficiaries in Punjab and Meghalaya. The selection of Mohali in Punjab and East Khasi Hills in Meghalaya for this study was based on several key factors that provide a comprehensive understanding of the ONORC scheme's impact across diverse contexts.
Firstly, Punjab is one of the leading states in India in terms of agricultural production and has a well-established Public Distribution System (PDS). The state has a high level of awareness and implementation of the ONORC scheme, making it an ideal location to assess the effectiveness of the scheme in a relatively successful context. The experiences of beneficiaries in Punjab can provide valuable insights into the strengths of the ONORC scheme and its role in enhancing food security.
Conversely, Meghalaya represents a contrasting scenario, characterized by its hilly terrain, diverse tribal population, and varying levels of infrastructural development. The state has faced challenges in implementing the ONORC scheme, including lower awareness levels and technological barriers. By including East Khasi Hills, the study aims to explore the challenges and limitations of the ONORC scheme in a region where the PDS has historically struggled to meet the needs of its beneficiaries.
By selecting these two states, the study aims to capture a comprehensive view of the ONORC scheme's impact, highlighting both successful implementation and the challenges faced in different socio-economic and geographical contexts. This comparative analysis will provide a deeper understanding of how the ONORC scheme can be optimized to serve diverse populations across India.
The research design combined quantitative surveys and qualitative interviews to provide a comprehensive understanding of the scheme's effectiveness. Data was collected through structured questionnaires administered to a total of 150 respondents, with 75 participants from each state. The sample included 100 beneficiaries eligible for the ONORC scheme, 30 Fair Price Shop (FPS) dealers, and 20 government officials involved in the scheme's implementation. Random sampling was utilized to ensure diverse representation.
One Nation One Ration Card (ONORC) in India
Evaluation of the Scheme
The One Nation One Ration Card (ONORC) scheme is a technology-driven initiative launched by the Department of Food & Public Distribution, Government of India, aimed at addressing the challenges faced by migrants in accessing food security. By ensuring the national portability of ration cards, the scheme seeks to provide food security for approximately 80 crore beneficiaries, including migrant laborers and their families. This initiative allows states and union territories (UTs) to serve a larger number of beneficiaries without incurring additional burdens, while also minimizing the leakage and diversion of un-lifted food grains at Fair Price Shops (FPS).
Figure 3: Illustration of ONORC procedure in Tabular Form
Implementation
The ONORC scheme is implemented nationwide through an IT-driven system that includes the installation of electronic Point of Sale (ePoS) devices at FPSs, seeding of Aadhaar numbers with ration cards, and operationalization of biometrically authenticated transactions. As of February 2024, out of 538,332 FPSs in India, 488,832 (or 90.68%) are ePoS-enabled. The ownership of these FPSs is diverse, with 9,711 belonging to Panchayats, 83,300 to Cooperative Societies, 25,860 to Self Help Groups (SHGs), 295,414 to individuals, and 91,827 categorized as others.
Figure3: FPS Ownership PAN India
Portability
Beneficiaries can access their rations by quoting either their ration card number or Aadhaar number at any FPS across the country. This flexibility allows family members to draw entitlements from different locations without the need for additional documentation. The portability feature has seen significant usage, with transactions increasing from 4 crore in 2019 to 44 crore in 2022, demonstrating the scheme's effectiveness in providing access to food entitlements.
Findings
Punjab
In the context of the state of Punjab, the selected district for this study is Mohali (SAS Nagar), characterized by its agricultural productivity and a substantial population of migrant workers. The district has been proactive in implementing the ONORC scheme, aiming to ensure that all eligible beneficiaries can access their food entitlements seamlessly.
Aadhaar Seeding in the state of Punjab WEF 2018 -2023 (99.98% seeding as on date)
Figure 6: Illustration of Aadhar Seeding in Punjab w.e.f. 2018-2024
Punjab has achieved an outstanding Aadhaar seeding rate of 99.98% for ration cards. This high level of integration is crucial for the effective functioning of the ONORC scheme, as it allows beneficiaries to authenticate their identities using biometric data at Fair Price Shops (FPS). The near-complete seeding of Aadhaar with ration cards has significantly reduced the potential for fraud and ensured that food grains are allocated to the rightful beneficiaries.
Figure 7: Illustration of FPS Distribution in Punjab FPS Distribution in Punjab
A total of 17,614 FPS exists in the state as on 01 Mar 24 for ensuring smooth distribution of rations out of which 118 are owned by local panchayats, 683 are owned by Cooperative Societies, 37 by Self Help Groups, 7274 by individuals and 9502 by others. The data shows that approximately 90.68% of these FPSs are now ePoS-enabled, facilitating real-time tracking of transactions and enhancing transparency in the distribution process.
Figure 8: Portability accessed by beneficiaries in Punjab
Recent data indicates that a substantial percentage of beneficiaries in Punjab have utilized the portability feature of the ONORC scheme. Specifically, 75% of beneficiaries reported using the portability feature more than once. This high utilization rate demonstrates the effectiveness of the scheme in providing flexibility and convenience to users, particularly for those who migrate for work or need to access their rations from different locations.
The implementation of the One Nation One Ration Card (ONORC) scheme in Punjab has led to a significant increase in transactions at Fair Price Shops (FPS). Data shows that transactions rose from 11,03,199 in 2019 to a peak of 20,31,785 in year 2024, reflecting heightened utilization of the scheme. Overall, the increase in transactions highlights the ONORC scheme's positive impact on food security, enabling beneficiaries to access their entitlements more easily.
Meghalaya
Meghalaya has an average per capita GSDP of Rs. 81,016 (2016-17 data) and is one of the poorest states in the country and the north-eastern region. Only five states- Assam, Bihar, Manipur, Jharkhand and Uttar Pradesh have lower per capita GSDP than Meghalaya. In terms of human development, the State ranked 26th on Human Development Index (HDI). Meghalaya is characterized by its predominantly rural population, with a significant portion engaged in agriculture and allied activities. The state faces challenges related to food security, infrastructure, and access to essential services, making the ONORC scheme particularly relevant for its residents.
Figure 10: Representation of Aadhaar seeding in Meghalaya
Meghalaya has achieved an Aadhaar seeding rate of approximately 70.8% for ration cards i.e. out of total 5,55,367 ration cards 3,88,757 have been seeded This level of integration is essential for the effective functioning of the ONORC scheme, as it allows beneficiaries to authenticate their identities at Fair Price Shops (FPS) using biometric data. However, the lower seeding rate compared to other states presents challenges in ensuring that all eligible beneficiaries can access their food entitlements.
A total of 923 FPSs, with 97% of these FPSs being ePoS-enabled. This technological advancement facilitates real-time tracking of transactions and enhances transparency in the distribution process.
The data on ration availed by beneficiaries in Meghalaya under the One Nation One Ration Card (ONORC) scheme shows fluctuations over the years. In 2020, 64.31% of beneficiaries accessed their rations, which declined to 57.83% in 2021, indicating initial challenges in implementation. However, there was a significant improvement in 2022, with 86.40% availing their rations, likely due to increased awareness and better access through ePoS devices. This was followed by a decrease to 75.18% in 2023 and 62.34% in 2024, suggesting ongoing barriers that need to be addressed, such as technological issues and the need for continuous awareness campaigns to ensure beneficiaries can effectively utilize the scheme. Additionally, the level of digital literacy among the population is very low and is actually one of the main reasons which has impacted awareness about ONORC.
Local media outlets have reported on the ONORC scheme, highlighting its benefits and importance for food security. NFHS data reveals that-
• 29.3% of households experience inadequate food consumption, indicating a significant portion of the population is not meeting essential dietary needs.
• 36.4% of children under 5 years are stunted, and 16.1% are wasted, highlighting critical issues of chronic and acute malnutrition, respectively, along with a 29.8% prevalence of anemia among women aged 15-49 years.
Quantitative Data Analysis
1. Awareness and Enrollment
• Awareness of ONORC:
• Punjab: 85% of beneficiaries were aware of the scheme.
• Meghalaya: Only 60% reported awareness, with significant gaps in tribal and remote regions.
• Aadhaar Seeding of Ration Cards:
• Punjab: 99.98% of ration cards were Aadhaar-linked.
• Meghalaya: 70.8% seeding rate due to infrastructural and logistical challenges.
2. Accessibility and Utilization
• Frequency of Access:
• Punjab: 78% of beneficiaries accessed rations monthly without disruption.
• Meghalaya: 52% reported delays due to technical glitches (e.g., biometric authentication failures).
• Portability Usage:
• Punjab: 65% of migrant workers utilized the portability feature to access rations in other states.
• Meghalaya: Only 22% of migrants used the feature, citing lack of awareness and trust in inter-state systems.
3. Beneficiary Satisfaction
• Satisfaction Levels (5-point Likert scale):
• Punjab: Average satisfaction score of 4.2/5 (85% satisfied).
• Meghalaya: Average satisfaction score of 3.5/5 (70% satisfied).
Qualitative Data Analysis
1. Thematic Interpretation
• Improved Mobility for Migrants:
• Migrants in Punjab have experienced enhanced mobility, allowing them to access rations closer to their work locations. This improvement has made it easier for them to obtain their entitled food grains without the need for long-distance travel. In contrast, migrants in Meghalaya have expressed concerns about potential reductions in their entitlements when using the system in other states, indicating a lack of trust in the portability feature.
• Technological Barriers:
• Fair Price Shop (FPS) dealers in both states have reported recurring issues with the electronic Point of Sale (ePoS) machines, primarily due to poor internet connectivity. These technological failures often result in beneficiaries being unable to access their rations, leading to frustration and blame directed at the dealers. Government officials have acknowledged that remote areas lack the necessary infrastructure to support real-time data verification, which further complicates the situation.
• Exclusion Errors:
• Elderly beneficiaries in Meghalaya have faced challenges with biometric authentication, as their fingerprints may not be recognized by the machines. Additionally, some individuals do not possess Aadhaar cards, which prevents them from accessing their entitlements. This highlights a significant barrier for vulnerable populations who may struggle to navigate the digital requirements of the ONORC scheme.
2. Satisfaction Level
• Punjab: Participants in FGDs praised the efficiency of the ONORC scheme but emphasized the need for improved grievance redressal mechanisms. This feedback suggests that while the scheme is functioning well, there are still gaps in addressing beneficiaries' concerns and complaints.
• Meghalaya: FGDs revealed a pervasive distrust in the PDS among participants, with allegations of corruption in the Aadhaar enrollment process. This distrust can hinder the effectiveness of the ONORC scheme, as beneficiaries may be reluctant to engage with a system they perceive as flawed or corrupt.
3. Key Challenges
The primary challenge identified in Punjab is minor technical glitches that occasionally disrupt the ePoS system, affecting the smooth operation of the ONORC scheme.
In contrast, Meghalaya faces more significant challenges, including infrastructural issues that impede the implementation of the ONORC scheme and awareness gaps that prevent beneficiaries from fully understanding and utilizing the system.
Recommendations
1. Enhancing Awareness and Outreach:
• Conduct extensive awareness campaigns in vernacular languages to educate beneficiaries about the ONORC scheme, its benefits, and how to access services. Engaging local leaders, village heads, and community organizations can help disseminate information effectively, particularly in remote areas.
2. Improving Digital Infrastructure and Connectivity:
• Invest in upgrading digital infrastructure, including internet connectivity and electricity supply in rural areas, to ensure the smooth functioning of electronic Point of Sale (ePoS) devices. Establishing backup systems for offline operations can mitigate issues related to connectivity disruptions.
3. Addressing Exclusion Errors:
• Implement measures to ensure that all eligible beneficiaries are enrolled in the Aadhaar system. Special attention should be given to vulnerable groups, such as the elderly, who may face challenges with biometric authentication. Providing alternative modes of identification and verification can help reduce exclusion.
4. Strengthening Inter-State Cooperation:
• Foster collaboration between state governments to streamline the portability of ration cards and ensure that beneficiaries can access their entitlements seamlessly across state lines. Effective data sharing and coordination are essential to address the challenges faced by migrant workers.
5. Improving Grievance Redressal Mechanisms:
• Establish robust grievance redressal systems to address beneficiaries' concerns promptly. This includes creating dedicated helplines and online portals for beneficiaries to report issues and seek assistance.
6. Capacity Building and Training:
• Provide comprehensive training for Fair Price Shop (FPS) dealers and government officials on the ONORC scheme, digital literacy, and customer service. This will equip them with the necessary skills to assist beneficiaries effectively and troubleshoot common issues.
7. Regular Monitoring and Evaluation:
• Implement a framework for continuous monitoring and evaluation of the ONORC scheme to assess its effectiveness and identify areas for improvement. Collecting data on key performance indicators, such as enrollment rates and beneficiary satisfaction, will help inform policy adjustments.
8. Ensuring Inclusivity and Accessibility:
• Adopt a participatory approach that involves local communities and civil society organizations in the implementation of the ONORC scheme. This will help ensure that marginalized groups, including women and low-income households, have equal access to benefits.
Conclusion
In conclusion, the assessment of the impact of the One Nation One Ration Card (ONORC) scheme in rural areas demonstrates significant progress in enhancing food security and accessibility for vulnerable populations. The implementation of ONORC has effectively streamlined the distribution of food grains, ensuring timely access to subsidized provisions for beneficiaries across the states. The scheme's interoperability feature has empowered migrant workers by enabling them to access their entitled rations seamlessly, regardless of their location.
Moreover, the ONORC scheme has fostered greater transparency and efficiency within the Public Distribution System (PDS), significantly minimizing leakages and ensuring that food grains reach their intended beneficiaries. This initiative has played a crucial role in reducing food insecurity and alleviating poverty by providing a reliable source of nutrition for disadvantaged communities in rural areas.
Despite these advancements, challenges such as infrastructural limitations, last-mile connectivity issues, and gaps in awareness persist, necessitating concerted efforts from all stakeholders to address these barriers effectively. Ongoing monitoring, evaluation, and refinement of implementation strategies are essential to maximize the scheme's impact and ensure that its benefits reach the most marginalized sections of society.
Overall, the ONORC scheme holds immense potential to catalyze socio-economic development and promote inclusive growth in rural India, ultimately contributing to the realization of food security for all.
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