International Journal For Multidisciplinary Research

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Direct Benefit Transfer in Food Subsidies: A steptowards better Food Security

Author(s) Ms. Pratishtha Pandey, Dr. Meenakshi Panchal
Country India
Abstract In some regions, the Public Distribution System (PDS) has been replaced with the Direct Benefit Transfer (DBT) program, marking a dramatic change in India's food subsidy structure. By transferring subsidy funds straight into recipients' bank accounts, DBT seeks to do away with middlemen, cut down on leaks, and improve transparency. DBT aims to provide recipients more choice and control over their food intake by digitizing the welfare delivery process.

Chandigarh, Puducherry, and portions of Dadra & Nagar Haveli were among the Union Territories where DBT in food subsidies was initially tested. The main concept was to use direct cash transfers in place of subsidized food grains so that recipients could buy food from open marketplaces.
Another critical concern is that cash transfers may not always be used for food, especially in households facing multiple financial pressures. Moreover, market price fluctuations can erode the real value of the cash transfer, unlike PDS which provides food grains at fixed subsidized prices regardless of market conditions.
Some initial advantages were brought to light by these pilots, especially with regard to timely payments, less corruption, and administrative savings. DBT provides the ability to guarantee that benefits reach the intended recipients, in contrast to PDS, which is beset by ghost beneficiaries and food grain diversion.

DBT's effects on real food security, however, are still inconsistent and very situation-specific. DBT has performed better in areas with mature marketplaces, adequate digital infrastructure, and financial accessibility. Increased autonomy and enjoyment in selecting food items were reported by beneficiaries in these locations. On the other hand, a number of issues still exist in rural and impoverished communities. These include underdeveloped food markets, erratic internet connectivity, restricted access to banking facilities, and low levels of digital literacy, which make it challenging for low-income people to obtain enough wholesome food at consistent costs. According to policy reviews, DBT can increase efficiency, but resolving structural inequities is necessary for it to succeed in boosting food security. Strong grievance redressal procedures, initiatives to promote financial inclusion, and regular adjustments to cash amounts in accordance with inflation are all necessary for DBT to function as a dependable food security measure.
To sum up, DBT is a reform that shows promise for streamlining India's food subsidy scheme. However, how well the government handles issues at the local level will determine its capacity to guarantee food security. In the foreseeable future, a hybrid model that combines reformed PDS in rural areas and DBT in urban areas would provide a more balanced approach.
Keywords Direct Benefit Transfer (DBT), food subsidies , food security, Public Distribution System (PDS)
Field Sociology > Economics
Published In Volume 7, Issue 4, July-August 2025
Published On 2025-07-22
DOI https://doi.org/10.36948/ijfmr.2025.v07i04.51832
Short DOI https://doi.org/g9t2gc
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