The Cabinet Committee on Economic Affairs (CCEA) has approved a plan to improve the quality of rice distributed under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and other welfare schemes by reducing the proportion of broken grains in government-supplied rice.Under the phased rollout, to be completed by 2027-28, the permissible broken grain content in raw rice will be reduced to 10 per cent from the current 25 per cent, while that in parboiled rice will be cut to 5 per cent from 16 per cent.The move will improve the quality of rice supplied through the Public Distribution System (PDS). At the same time, the separated broken rice—comprising 100 per cent broken grains—can be diverted for ethanol production, sources said.“Since ethanol has become a contentious issue and the 100 per cent broken rice is likely to be channelled to the biofuel programme, the government avoided mentioning it during the regular Cabinet briefing,” a source said.“For the first time in nearly three decades, the government has revised the quality specifications of rice supplied under the Public Distribution System, ensuring beneficiaries receive rice with substantially lower broken grain content while retaining their existing entitlements,” the Food Ministry said on Thursday.Cost savings, higher revenueThe ministry said the broken rice generated during milling will be separated and “utilised productively for other purposes”. As it will be auctioned directly from millers’ premises, the move is expected to reduce transportation, storage and handling costs. Jute bag usage will also decline as broken rice will be stored in HDPE bags.The changes are expected to reduce annual logistics, storage and packaging costs by about ₹2,161 crore. Revenue from the sale of broken rice will provide an additional boost by lowering the food subsidy burden, the ministry said.Phased rolloutIn a social media post, Union Food Minister Pralhad Joshi described the decision as a “historic and transformative” step to strengthen India’s food security architecture.“Every eligible family will continue to receive the same entitlement under PMGKAY, now with significantly improved quality,” he said, adding that the reform would ensure better grain quality, optimal utilisation of rice, QR-based traceability and greater efficiency through cost rationalisation.The ministry said procurement of improved-quality rice will begin immediately and be extended to all procuring States by the Kharif Marketing Season (KMS) 2027-28. Distribution under the revised norms will also be phased in to ensure a smooth transition.Pilot validatedThe separation of broken grains has already been validated through pilot projects in Haryana, Andhra Pradesh, Punjab, Odisha, Telangana and Chhattisgarh, demonstrating the feasibility of producing improved-quality rice on a large scale, the ministry said.The reform also introduces QR-code tagging of rice bags to enable end-to-end traceability across the supply chain, strengthening transparency, accountability and inventory management while helping plug leakages in the PDS.Published on July 2, 2026