Conventional ration distribution systems exhibit certain limitations, including stock outages and poor management of stocks, which result in wastage of resources and unequal distribution. This paper suggests implementing an AI-based Smart Ration Tracking System enriched with blockchain technology to enhance the transparency, security, and effectiveness of public distribution. Through the use of smart contracts, the system manages the distribution of rations directly to the beneficiaries, thus reducing cases of fraud and false claims. FIFO (First In, First Out) is a stock control strategy that helps to reduce goods waste and increase the efficiency of the supply chain by using the older inventory before the new one. The AI-based analytics help in the correct identification of demand patterns to avoid shortages or overstocking situations. The decentralized and immutable ledger of blockchain increases stock accountability by providing accurate information about all transactions made. With this system enhanced by AI, the rations can be delivered to the beneficiaries properly and on time, with no possibility of interference or undue delay.