Rationing distribution is one of the widely controversial issue that involves corruption and illegal smuggling of goods. One reason of this to happen is because every job in the ration shop involves manual work and there is no specific technology involved in automating the job. These irregularities or illegal activities are for example - wrong entries in stock register of shop containing wrong stock information of the products that is supplied to the public, sometimes there are chance of distribution of low quality/graded products than the actual products provided by the Government for supplying to the public, also the information regarding the actual available stock quantity in a ration shop that is provided by the Government to the public. In this paper we propose the concept of replacing manual work/job in distributing the commodities to the public by automated system which can be installed at the ration shop with ease. Here RFID card reader is used and the person has to show the RF card to the card reader which is provided to the user. This prompted us to interface RFID reader to the microcontroller (PIC 16F877A) and PC via RS232 to develop such a system. Using such a system, Government would have all required control/monitoring over the transactions at ration shop. In our project we designed the hardware for three commodities namely Sugar, Rice and Kerosene as other products can be provided as packets to the users. These three commodities are stored in reservoir tanks and they are measured and supplied to the user as and when required. In our project there is also option to block the card if the user has lost his card. The user can block the card with the help of the worker by displaying any proof of the user that he is belonging to the same family. The user after blocking the card, can also be able to apply for a new card. The user can also able to change their personal details like changing address, adding or removing the members of the family by showing birth certificate or death certificate to the worker. Hence it is possible to prevent the corruption and irregularities at ration shop.