Editor’s Note
This article discusses India’s rollout of the “Ann-Chakra” digital tool, a key initiative to modernize the national food supply chain. By optimizing logistics for the Public Distribution System, it aims to achieve significant cost savings and reduce environmental impact.
In a major step towards modernizing India’s food supply system, the Government of India has implemented the “Ann-Chakra” supply chain optimization tool in 30 out of 31 targeted states and union territories (UTs). This digital initiative aims to streamline the Public Distribution System (PDS) through technology-based logistics. It is estimated that this will lead to annual savings of approximately ₹250 crore and also reduce environmental impact.
“Ann-Chakra” is a route optimization and logistics management tool developed to enhance the efficiency of PDS logistics and food grain transportation. It uses data-based algorithms to reduce transportation costs, shorten delivery times, and ensure systematic supply from central warehouses to fair price shops. By adopting automated route optimization in place of traditional manual planning, this tool helps in preventing wastage, saving fuel, and enabling real-time decision-making.
As of August 2025, this tool has been implemented in the following 30 states/union territories—Punjab, Telangana, Tamil Nadu, Rajasthan, Mizoram, Bihar, Sikkim, Gujarat, Andhra Pradesh, Nagaland, Chhattisgarh, Goa, Jharkhand, West Bengal, Himachal Pradesh, Meghalaya, Assam, Uttarakhand, Madhya Pradesh, Delhi, Jammu & Kashmir, Uttar Pradesh, Maharashtra, Arunachal Pradesh, Ladakh, Tripura, Kerala, Karnataka, Haryana, and Odisha. It has not yet been implemented in Manipur.
Cost Savings – Annual savings of approximately ₹250 crore, as transportation costs, fuel consumption, and unnecessary routes will be reduced.
Reduced Environmental Impact – Decreased fuel usage will lower CO₂ emissions, contributing to climate change goals and Sustainable Development Goals (SDGs).
Supply Chain Transparency – Digital dashboards and predictive analytics will make it easier to track stock movement, identify potential delays, and prevent food grain leakage or diversion.
Timely Distribution – Route and schedule optimization will ensure ration reaches on time, especially to remote and difficult areas.
India’s PDS system covers over 80 crore people, making it one of the world’s largest food security networks. For the success of this system, effective and timely distribution of grains is extremely crucial. The launch of “Ann-Chakra” will lead to—better financial management by reducing logistics expenditure, improved food access for vulnerable sections, and easier monitoring at the administrative level and coordination with logistics partners.
Although the project has progressed significantly, some challenges remain—
Full integration in Manipur is still pending, possibly due to local logistical reasons.
Training is ongoing to familiarize local authorities and transport operators with the digital platform.
Continuous data updates and infrastructure support are necessary to sustain the tool’s performance.
Through phased expansion and capacity-building programs, this initiative can deliver sustainable and widespread benefits across the country.
