The Indian state of Telangana is launching a blockchain trial for food distribution to the poor, reported local media
The New Indian Express. The Telangana State Civil Supplies Corporation (TSCSC) will introduce the distributed ledger technology (DLT) in the public distribution system (PDS) during this Kharif season (crops sown during the rainy season).
PDS is a food distribution network created by the Indian government for citizens below the poverty line (BPL). Residents can approach distribution centers with their BPL cards and buy essential foods at a heavily subsidized rate. A pilot project will be launched at the paddy procurement center in Siddipet district and later at a fair price shop in Gajwel town.
However, this system is marred with inefficiencies and corruption. The state government allots a certain quota of grains, cooking oil, pulses etc. to be distributed in a particular town or village. There have been numerous cases of adulteration or dilution, hoarding and distribution of inferior quality foodgrains by the intermediaries to increase profits. To combat this, the state’s Civil Supplies Commissioner Akun Sabharwal has launched the blockchain project.
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