Public Distribution System: Evolution, Significance and Issues

Public Distribution System is a Government-run program for distributing essential commodities to vulnerable sections of the society.

Public Distribution System (PDS) in India

India’s PDS is an initiative administered by the Ministry of Consumer Affairs, Food, and Public Distribution. It aims to ensure affordable access to essential commodities for the economically vulnerable.
Established in the 1960s, the PDS operates through a Fair Price Shops (FPS) network.
Key commodities like rice, wheat, sugar, and others are procured from farmers at the Minimum Support Price (MSP) and distributed to beneficiaries at subsidised rates.
- Additionally, States/UTs distribute items like pulses, edible oils, and spices.

Objectives of PDS

Ensure Affordable Essentials: To protect consumers, provide essential goods at subsidised rates.
Stabilize Prices: Control open market prices and shield consumers from price hikes.
Nutritional Safeguard: Ensure minimum nutritional standards are met for all beneficiaries.

Phases of Evolution of PDS in India

Early Evolution: PDS began during World War II and expanded in the 1960s by establishing the Agricultural Prices Commission and the Food Corporation of India (FCI) to address food shortages.
Targeting and Revamping: The Revamped Public Distribution System (RPDS) was introduced in 1992 to target remote areas, while the Targeted Public Distribution System (TPDS), introduced in 1997, focused on Below-Poverty-Line (BPL) and Above-Poverty-Line (APL) households.
Expansion: The Antyodaya Anna Yojana (AAY) launched in 2000 provided subsidised food to the poorest, and the National Food Security Act (NFSA) of 2013 extended food entitlements to 82 crore people.

Significance of the Public Distribution System (PDS)

Poverty Alleviation and Social Welfare: Provides subsidised food to low-income groups, ensuring basic nutrition. E.g. 80.1 crore NFSA beneficiaries receive benefits via 5.45 lakh Fair Price Shops across India (as of 30th June 2023).
Food Security and Price Stabilization: Ensures affordable access to essential food items and stabilises prices. E.g. ₹3/kg for rice, ₹2/kg for wheat during inflation.
Farmer Support and Stable Income: MSP procurement ensures stable market prices for farmers. E.g. Punjab and Haryana benefit from MSP for wheat and rice.
Crisis Mitigation and Emergency Relief: Acts as a safety net during food shortages or crises. E.g. PDS provided food during COVID-19 Pandemic.
Nutritional Support: Helps prevent malnutrition, especially for children and pregnant women. E.g. Tamil Nadu distributes subsidised pulses and oil for better nutrition.
Regional Equity and Redistribution: Redistributes food from surplus to deficit regions, promoting food equity. Eg. Food grains from Punjab are sent to Northeast India.

Issues With the Public Distribution System (PDS)

Leakages and Diversions: A study highlights 28% leakage in India’s Public Distribution System (PDS), leading to an annual loss of ₹69,108 crore. E.g. 28% of allocated grains fail to reach intended beneficiaries.
Targeting Errors: Inclusion of non-poor households and exclusion of eligible ones. E.g. Wealthier families in urban areas access subsidised grains for the poor.
Supply Chain Inefficiencies: Challenges in storage, transportation, and timely delivery of food grains. E.g. delays in distributing food grains to remote areas lead to shortages.
Monocropping: Over-reliance on rice and wheat, limiting crop diversity. E.g. Lack of variety in food grains impacts agricultural sustainability.
Rising Subsidy Costs: Substantial increase in subsidy burden over the years. E.g. From ₹21,200 crores in 2002-03 to ₹2 lakh crores in 2024-25.
Urban Bias: Limited effectiveness in reaching remote rural areas due to infrastructure gaps. E.g. Urban areas have more consistent access to subsidised food grains compared to rural regions.

Steps Taken to Improve Public Distribution System (PDS)

Digitisation: Digitisation of ration cards and GPS-based tracking to ensure efficiency in the supply chain.
One Nation One Ration Card (ONORC): Enables portability of benefits across states, ensuring that beneficiaries can access subsidised food grains regardless of their location.
Social Audits: Community participation through social audits enhances transparency and accountability.
Technology Integration: Use of e-POS devices for real-time monitoring of PDS operations.
Promotion of Nutri-Cereals: Encouraging the inclusion of millets and other nutritious grains to diversify food intake and improve health outcomes.

Way Forward to Improve Public Distribution System (PDS)

Universal PDS: Ensure no one is left out by expanding coverage, similar to Tamil Nadu’s model.
Aadhaar Integration: Link Aadhaar numbers to eliminate ineligible beneficiaries.
Direct Cash Transfers (DBT): Implement DBT to reduce leakage & efficiency in food distribution.
Computerization & Digitalization: Accelerate digitisation of ration cards, GPS tracking of deliveries, and SMS-based citizen monitoring. States like Chhattisgarh and Gujarat should be models for best practices.
Public Participation & Transparency: Encourage social audits and involve SHGs, cooperatives, and NGOs to enhance accountability.
Buffer Stock & Food Waste Management: Optimise buffer stock norms to reduce food grain wastage.

Shanta Kumar Committee Recommendations on Revamping of PDS

Direct Procurement by States: States like Andhra Pradesh, Chhattisgarh, Punjab, Haryana, and MP should procure directly from farmers to ensure fair pricing.
Private Sector Involvement: Engage the private sector in procurement, storage, and distribution to enhance efficiency.
Diversified Procurement: Expand the procurement basket to include more nutritious crops, reducing reliance on wheat and rice.
End-to-End Computerization: Implement computerisation in Fair Price Shops (FPS) and track PDS trucks via GPS to improve transparency and reduce leakages.

From a fragmented approach to a comprehensive “Continuum of Care” approach, the PDS must integrate technology, transparency, and diversification to ensure equitable access, nutritional security, and sustainability for all beneficiaries.

Reference: PMF IAS: Public Distribution System | Business Standard

UPSC Mains PYQs – Theme – Public Distribution System

What are the reformative steps taken by the Government to make food grain distribution system more effective? (2019)
What are the salient features of the National Food Security Act, 2013? How has the Food Security Bill helped in eliminating hunger and malnutrition in India? (2021)
What are the major challenges of Public Distribution System (PDS) in India? How can it be made effective and transparent? (2022)

PMF IAS Pathfinder for Mains

Q. Despite its critical role, the Public Distribution System (PDS) faces several challenges that hinder its effectiveness. Critically examine these challenges and suggest reforms to improve PDS efficiency. (15 Marks, 250 words)

Approach

Introduction: Briefly highlight the Public Distribution System’s (PDS) role and its significance.
Body: Discuss the challenges in PDS and reforms to improve PDS efficiency.
Conclusion: Briefly mention that PDS must shift focus from “food security” to “nutrition security.”