Chandigarh Begins CBDC-Based Food Subsidy Pilot

New Delhi, August 14, 2026 Chandigarh has taken a new step towards technology-driven welfare delivery with the introduction of a digital currency-based subsidy mechanism. Union Agriculture Minister Shivraj Singh Chouhan launched the Central Bank Digital Currency (CBDC)-enabled Direct Benefit Transfer (DBT) system on Friday. The initiative will initially cover eligible beneficiaries under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), with food subsidies being credited to their CBDC wallets rather than conventional bank accounts. The new arrangement will allow beneficiaries to spend the digital subsidy at authorised outlets on foodgrains and other essential items. Wheat and rice will remain available, while beneficiaries will also be able to choose pulses and other necessary food products according to their requirements. Built-in safeguards will restrict the use of the CBDC amount to permitted food purchases, which is expected to reduce the chances of the subsidy being diverted for other purposes. Chouhan described the initiative as an important move towards improving transparency, security and timely delivery under the Public Distribution System. The Chandigarh pilot may subsequently provide a framework for introducing a similar system in other parts of India. Speaking about PMGKAY, Chouhan said the programme currently provides free foodgrains to more than 80 crore people. He said its impact extends beyond food security because the reduction in household expenditure allows poorer families to save money and use it for children's education and other essential needs. On matters concerning farmers and food security, Chouhan said, **“The government will not compromise on the interests of farmers.”** He added that agreements involving farmers with other countries have been considered by keeping national interest, farmer welfare and public interest at the highest priority. He also pointed to India's sufficient wheat and rice reserves, saying the country can meet its domestic requirements and export foodgrains whenever required. He further said that under Prime Minister Narendra Modi's leadership, benefits under PM-KISAN Samman Nidhi and other government schemes would continue to be delivered transparently. Punjab Governor Gulab Chand Kataria, Union Consumer Affairs, Food and Public Distribution Minister Pralhad Joshi and senior officials attended the launch programme. Chouhan also spoke about disruptions in Parliament and criticised the Opposition for repeatedly interrupting proceedings. He stressed that the dignity of democratic institutions must be protected and said, “Continuous disruptions in Parliament are an insult to the Constitution and the democratic process.” He maintained that the government would continue to take decisions considered necessary in the national interest. With the Chandigarh pilot combining digital currency with welfare distribution, the initiative could become a significant test of whether technology can make food subsidies more targeted, controlled and responsive to beneficiaries' needs.