15.1.2 Health and food: Rajiv Aarogyasri, the public distribution system and fine-rice (Sanna Biyyam) supply

Explained

1. Rajiv Aarogyasri: how it works

• Who: families with a white ration card (food security card), i.e. below the income limits used for PDS. About 90 lakh families are covered (government figure, 2026).
• What: cashless treatment for listed procedures (surgeries and therapies) in network hospitals, both government and private. It covers secondary and tertiary care (major illnesses), not outpatient visits.
• Network: about 1,400 hospitals, roughly 1,030 government and 380 private (2026 figure).
• Changes since December 2023:

• Link with PM-JAY: from 2021 the central PM-JAY and Aarogyasri run as one scheme in Telangana. The Centre shares the cost for PM-JAY-eligible families; the state pays for the rest and for the cover above the PM-JAY level.
• Other trust-run schemes: the Employees Health Scheme (EHS) for state employees and pensioners, and the Working Journalists Health Scheme.

2. The public distribution system (PDS) in Telangana

• Legal base: NFSA 2013 gives a legal right to subsidised grain: 5 kg a person a month for "priority households" and 35 kg a family for AAY. Telangana gives 6 kg a person, and covers families beyond the central NFSA list from its own budget.
• Free grain: under the PM Garib Kalyan Anna Yojana, NFSA grain has been free since 1 January 2023 (extended for five years from 1 January 2024). Telangana's own add-on is also free.
• Food security card eligibility (Telangana norms): annual family income up to Rs 1.5 lakh (rural) and Rs 2 lakh (urban); land up to 3.5 acres wet or 7.5 acres dry land. Landless labourers, marginal farmers, slum dwellers, households headed by widows or persons with disabilities, and tribal families are typical holders.
• Network: about 17,350 fair price shops (Economic Survey 2026). Grain is issued after biometric (Aadhaar) check on ePoS machines. A cardholder can draw rations at any shop in the state (portability), and under the national One Nation One Ration Card in other states for the NFSA part.
• Card is also a key: the white ration card is the eligibility proof for Aarogyasri, Gruha Jyothi, the Rs 500 LPG refill and many other schemes (TGP-GU-01). This is why new ration cards were a major demand.

3. From coarse rice to fine rice

• Doddu biyyam (coarse rice) was often not eaten and was resold. Fine rice is what most families buy in the market. The government reported that the share of cardholders drawing rice rose after the switch (from about 89% to 93%, government figure).
• Supply chain: the bonus encourages farmers to grow fine varieties; the state procures them, mills them into fortified fine rice and sends it to ration shops, hostels, mid-day meals and anganwadis.
• Scale (government, 2025-26): about 3 crore people; about 2 lakh tonnes of rice a month; estimated cost about Rs 10,600 crore a year (government figure at launch).

4. New ration cards (2025)

• Few new cards were issued in the years before 2023; families with grown children could not add members.
• After Praja Palana (about 20 lakh requests related to ration cards), cards were issued from 26 January 2025, and the statewide launch at Tirumalagiri on 14 July 2025 covered about 5.6 lakh new cards. Members were also added to existing cards.

5. Food and health links in other schemes

• Women and children: anganwadi meals and nutrition schemes (Aarogya Lakshmi, Indiramma Amrutham) are in TGP-WE-01.
• Schools: mid-day meals, and the CM Breakfast scheme announced in Budget 2026-27, are in TGP-ED-01.
• Family insurance: Indiramma Kutumba Jeevitha Bima (Budget 2026-27, announced): Rs 5 lakh life cover to about 1.15 crore ration-card families on the death of the head of the family; launch announced for 19 November 2026.