Public Distribution System (PDS) in India

Syllabus: GS3/ Economy

Context

• Comptroller and Auditor General of India (CAG) has released its report on the ‘Performance Audit on Supply Chain Management of Public Distribution’ of Karnataka’s Public Distribution System.

About

• Use of Unauthorised Vehicles: There was the use of passenger vehicles and light goods vehicles in transporting foodgrains.
  • The vehicles used for transporting food grains should be in accordance with the list of vehicles submitted to the Department (of Food and Civil Supplies).
• Wholesale Depot (WSD): Audit observed that poor maintenance of WSDs increased the risk of contamination and pest infestation of foodgrains leading to loss and degraded foodgrain quality.

Public Distribution System:

• It is a government-run food distribution program aimed at providing essential commodities, such as rice, wheat, sugar, and kerosene, to the economically vulnerable sections of society at subsidized rates. 
• Objectives: 
  • Food Security: Ensure the availability of essential food items to the poorer sections of society.
  • Poverty Alleviation: Provide subsidized goods to low-income households, reducing the financial burden on them.
  • Price Stabilization: Control the prices of essential commodities in the market, ensuring affordability.

Evolution of the Public Distribution System

• 1940s-1950s: Initially, PDS was launched to tackle food shortages in times of war and famines.
• 1960s-1970s: The Green Revolution increased food production, which enabled the government to expand the system to reach more people.
• 1980s: The introduction of Targeted Public Distribution System (TPDS) in 1997, aimed at improving the targeting of food assistance to the poor, began to streamline the allocation of food grains.
• 2000s: Digitization and reforms to improve transparency, such as the introduction of electronic ration cards.
• 2010s and Beyond:
  • The National Food Security Act (NFSA), 2013, aimed at covering more than 80 crore (800 million) people under the PDS.
  • It introduced a legal entitlement to subsidized food for eligible households, emphasizing nutritional security.

Key Features of PDS in India

• Targeted Distribution:
  • NFSA covers upto 75% of the rural population and 50% of the urban population under Antyodaya Anna Yojana (AAY) and priority households. 
  • While AAY households, which constitute the poorest of the poor are entitled to 35 kg of foodgrains per family per month, priority households are entitled to 5 kg per person per month. 
• Role of the Government:
  • The Central Government, through the Food Corporation of India (FCI), handles procurement, storage, transportation, and bulk allocation of food grains. 
  • State Governments are responsible for distributing these grains to eligible families through a network of Fair Price Shops (FPS).

Challenges in the Public Distribution System

• Leakage and Diversion: A significant amount of food grains are diverted from the intended beneficiaries to the open market, leading to inefficiencies.
• Exclusion Errors: Some of the poorest households are excluded from the PDS due to issues in the identification process.
• Quality Control: The quality of food grains distributed is sometimes poor, which undermines the effectiveness of the system.
• Corruption and Fraud: Fraudulent practices by fair price shop owners, such as selling PDS items at higher prices or diverting them for personal gain, have been a persistent issue.
• Storage and Transportation: The logistical challenge of transporting food grains to remote and difficult-to-reach areas continues to affect the efficiency of the system.
• Digitization Issues: While the digitization of the PDS has improved transparency, the process has been slow and is still prone to errors, such as technical glitches and discrepancies in data.

Reforms and Modernization Efforts

• National Food Security Act, 2013: Enacted to provide legal entitlement to subsidized food grains to two-thirds of India’s population.
  • Ensures the coverage of 75% of rural and 50% of urban population.
• Digital Ration Cards: The introduction of digital ration cards and Aadhaar-based biometric authentication aims to eliminate fake and duplicate ration cards.
• Direct Benefit Transfer (DBT): In some regions, DBT has been implemented, where money is transferred directly to the bank accounts of beneficiaries instead of providing food grains.
• End-to-End Computerization: The PDS system is being computerized to improve transparency, minimize leakages, and make distribution more efficient.
• Food Safety and Quality Monitoring: Various measures have been taken to improve the quality control of food grains provided under the PDS.

Way Ahead

• Implement social audits and public grievance redressal mechanisms to hold PDS stakeholders accountable and address issues like corruption and leakages.
• Increase awareness among the public about their entitlements under the PDS and involve local communities in monitoring and decision-making.
• Extend the PDS to include more nutritious food items such as pulses, oil, and fortified grains to improve the overall nutritional status of the population.
• These measures, if implemented effectively, can help ensure that the PDS continues to serve as a crucial tool for addressing food insecurity and poverty in India.

Source: IE