In a major relief for low-income households, the Delhi cabinet on Tuesday approved a proposal to raise the annual income eligibility limit for ration cards under the public distribution system (PDS) from ₹1.2 lakh to ₹2.5 lakh, widening the pool of beneficiaries of subsidised foodgrain provided under the National Food Security Act (NFSA).
Step to include vulnerable informal workers
Officials said the revision was necessary as the existing ceiling excluded many economically vulnerable families whose earnings marginally exceeded the earlier threshold despite working in informal sectors such as domestic work, street vending, construction labour and transport services.
Income limit outdated amid inflation, says minister
Announcing the decision, Delhi food and supplies minister Manjinder Singh Sirsa said the existing income ceiling no longer reflected the economic realities of the Capital, where inflation and rising living costs have placed increasing pressure on vulnerable households.
“In today’s times, even an annual income of ₹1 lakh is below the level of minimum wages for a family. By increasing the limit to ₹2.5 lakh, more deserving families will be able to avail of subsidised ration benefits,” Sirsa said.
Delhi currently has around 6.45 million beneficiaries covered under the NFSA and PMGKAY schemes through nearly 1.55 million ration cards.
{{/usCountry}}Delhi currently has around 6.45 million beneficiaries covered under the NFSA and PMGKAY schemes through nearly 1.55 million ration cards.
{{/usCountry}}The city operates 1,943 fair price shops equipped with electronic point of sale (e-PoS) devices.
Officials said even unskilled workers now earn over ₹18,000 a month under Delhi’s latest minimum wage notification, translating to nearly ₹2.16 lakh annually for a single-earner household.
Digital overhaul planned for ration distribution
The government is also planning to gradually introduce a Central Bank Digital Currency (CBDC)-based ration distribution system in Delhi. Under the proposed model, food subsidy amounts equivalent to entitled foodgrains will be transferred into beneficiaries’ CBDC wallets, allowing them to purchase ration from authorised fair price shops using QR code or OTP-based authentication linked to Aadhaar and e-PoS systems.
Officials said the mechanism would ensure subsidies are used only for purchasing foodgrains while improving transparency.
The Delhi government will now amend Rule 3(1) of the Delhi Food Security Rules, 2026, to formally implement the revised income eligibility criteria.
Sunil Aledia, executive director of Centre for Holistic Development, which works for the homeless and people from economically weaker sections, welcomed the move and said,
“However, such policy decisions require a greater level of monitoring and implementation. While the move paves the way for addition of more beneficiaries and eligible families, how the government implements it will be crucial.”