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PDS: OBJECTIVES, FUNCTIONING, LIMITATIONS,

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 December, 2020  Team Samajho  UPSC

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India’s
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Enhancing
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Prelims: Economic and social development: Poverty, inclusion, Social Sector Strengthening
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What
What is
is PDS?
PDS?
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Daily Editorial
Editorial Analysis
Analysis

Revamping
Revamping the
the criminal
criminal
The Public distribution system (PDS) is an Indian food Security System for the
poor people established by the Government of India under the Ministry
Ministry of
of justice
justice system
system to
to Yt
Yt the
the bill
bill

Consumer
Consumer Affairs,
Affairs, Food,
Food, and
and Public
Public Distribution.
Distribution. –
– Analysis
Analysis of
of the
the
While the Central government is responsible for procurement, storage, Government’s
Government’s Proposed
Proposed
transportation, and bulk allocation of food grains, the State governments hold the
Bills
Bills to
to Replace
Replace Core
Core
responsibility for distributing the same to the consumers through the established
network of approximately 5 lakh Fair Price Shops. Major commodities distributed Criminal
Criminal Laws
Laws || 11
11
include wheat, rice, sugar, and kerosene. November
November 2023
2023 || UPSC
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The benefits of PDS are significant for the emerging
Daily
Daily Editorial
Editorial Analysis
Analysis
economies. Public distribution schemes in Bangladesh, Cambodia
Chip
Chip off
off the
the block
block –
– PLI
PLI
and Pakistan have helped to get more girls into education. (According
to Asia Reasearch Centre) Schemes
Schemes for
for Semiconductor
Semiconductor

Manufacturing
Manufacturing || 10
10

November
November 2023
2023 || UPSC
UPSC

Daily
Daily Editorial
Editorial Analysis
Analysis

Taiwan,
Taiwan, aa Malacca
Malacca blockade
blockade

and
and India’s
India’s options
options –
– India’s
India’s

Strategic
Strategic Dilemma
Dilemma in
in the
the

Strait
Strait of
of Malacca
Malacca || 99

November
November 2023
2023 || UPSC
UPSC

Daily
Daily Editorial
Editorial Analysis
Analysis

The
The problem
problem with
with the
the ‘70
‘70

hours
hours aa week’
week’ line
line –
–

Counterproductive
Counterproductive Push
Push for
for
Evolution
Evolution of
of the
the PDS
PDS system
system
aa 70-Hour
70-Hour Workweek
Workweek in
in

India
India || 88 November
November 2023
2023 ||
Evolution of public distribution of grains in India had its origin in the 'rationing'
UPSC
UPSC Daily
Daily Editorial
Editorial
system introduced by the British during World War II.
Public distribution of foodgrains was retained as a deliberate social policy by Analysis
Analysis
India when it embarked on the path of planned economic development in 1951. More
More light,
light, less
less sound
sound –
–AA
Before the 1960s, distribution through PDS was generally dependant
dependant on
on
Festival
Festival of
of Lights
Lights Should
Should
imports
imports of
of food
food grains
grains. It was expanded in the 1960s as a response to the
Not
Not Become
Become aa Festival
Festival of
of
food shortages of the time; subsequently, the government set up the
Agriculture
Agriculture Prices
Prices Commission
Commission and the Food
Food Corporation
Corporation of
of India
India to Noise:
Noise: A
A Call
Call for
for Effective
Effective
improve domestic procurement and storage of food grains for PDS. Noise
Noise Pollution
Pollution Control
Control || 77
By the 1970s, PDS had evolved
evolved into
into aa universal
universal scheme
scheme for
for the
the
November
November 2023
2023 || UPSC
UPSC
distribution
distribution of
of subsidised
subsidised food
food. In the 1990s, the scheme was revamped to
improve access of food grains to people in hilly and inaccessible areas and to Daily
Daily Editorial
Editorial Analysis
Analysis

target the poor. Giving

Giving the
the urban
urban Indian
Indian aa
Subsequently, in 1997, the government launched the Targeted
Targeted Public
Public
better
better life
life –
– Urgent
Urgent Need
Need for
for
Distribution
Distribution System
System (TPDS),
(TPDS), with a focus on the poor. TPDS aims to provide
Sustainable
Sustainable Urbanization
Urbanization in
in
subsidised food and fuel to the poor through a network of ration shops. Food
grains such as rice and wheat that are provided under TPDS are procured from India
India || 66 November
November 2023
2023 ||
farmers, allocated to states and delivered to the ration shop where the UPSC
UPSC Daily
Daily Editorial
Editorial
beneWciary buys his entitlement.
Analysis
Analysis

In September 2013, Parliament enacted the National

National Food
Food Security
Security Act,
Act, The
The IITs
IITs are
are overcommitted,
overcommitted,

2013
2013. The Act relies largely on the existing TPDS to deliver food grains as legal in
in crisis
crisis –
– Looming
Looming Crisis
Crisis in
in
entitlements to poor households. This marks a shift by making the right
right to
to India’s
India’s IIT
IIT System
System || 44
food
food aa justiciable
justiciable right.
right.
November
November 2023
2023 || UPSC
UPSC

Daily
Daily Editorial
Editorial Analysis
Analysis
Objectives
Objectives of
of the
the PDS
PDS

Creation of Food Corporation of India and Agricultural Prices Commission in Popular

Popular Articles
Articles
1965 consolidated the position of PDS. The government was now committed to
announce a minimum support price for wheat and paddy and procure quantities UPSC
UPSC CSE
CSE 2022
2022 Mains
Mains GS
GS 11

that could not fetch even such minimum prices in the market. Paper
Paper Model
Model Answers
Answers
The resultant stocks were to be utilized for maintaining distribution through the Model
Model Answers
Answers for
for UPSC
UPSC
PDS and a portion of these were used to create and maintain
maintain buffer
buffer stocks
stocks.
CSE
CSE 2021
2021 GS
GS 22 Paper
Paper
All through the ups and downs of Indian agriculture, PDS was continued as a
deliberate social policy of the government with the objectives of: SPR
SPR 2023
2023 || SPECIES
SPECIES IN
IN

NEWS
NEWS
1. Providing foodgrains and other essential
essential items
items to
to vulnerable
vulnerable sections
sections of
UPSC
UPSC CSE
CSE 2023
2023 Mains
Mains GS
GS 22
the society at reasonable (subsidised) prices
2. to have a moderating
moderating inSuence
inSuence on
on the
the open
open market
market prices
prices of cereals, Paper
Paper Model
Model Answers
Answers

the distribution of which constitutes a fairly big share of the total marketable Model
Model Answers
Answers for
for UPSC
UPSC
surplus
CSE
CSE 2020
2020 GS
GS 22 Paper
Paper
3. to attempt socialisation
socialisation in the matter of distribution of essential commodities.
UPSC
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Paper
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PDS: objectives,

Functioning of the PDS functioning, limitations,

revamping

Land Revenue System

during British rule in India

Govt policies &

interventions for

development in various

sectors, and issues arising

out of their design and

implementation

UPSC CSE 2022 Mains GS 2

The central and state governments share responsibilities in order to Paper Model Answers
provide food grains to the identiWed beneWciaries.
The centre procures food grains from farmers at a minimum support price
(MSP) and sells it to states at central issue prices. Popular Topics
It is responsible for transporting the grains to godowns in each state. States bear
the responsibility of transporting food grains from these godowns to each fair ART
ART &
& CULTURE
CULTURE

price shop (ration shop), where the beneWciary buys the food grains at the
CASE
CASE STUDIES
STUDIES
lower central issue price. Many states further subsidise the price of food grains
before selling it to beneWciaries. COMMITTEES
COMMITTEES &
& SUMMITS
SUMMITS

The Food Corporation of India (FCI) is the nodal agency at the centre that
DISASTER
DISASTER MANAGEMENT
MANAGEMENT
is responsible for transporting food grains to the state godowns. SpeciWcally, FCI
is responsible for: ECONOMICS
ECONOMICS

1. procuring grains at the MSP from farmers

ECONOMICS
ECONOMICS PREMIUM
PREMIUM
2. maintaining operational and buffer stocks of grains to ensure food security
3. allocating grains to states ECONOMICS
ECONOMICS STATIC
STATIC
4. distributing and transporting grains to the state depots
ECONOMIC
ECONOMIC SURVEY
SURVEY
5. selling the grains to states at the central issue price to be eventually passed
on to the beneWciaries. EDITORIAL
EDITORIAL

ENVIRONMENT
ENVIRONMENT
Lessons from Brazil's initiatives
ENVIRONMENT
ENVIRONMENT &
& ECOLOGY
ECOLOGY

Bolsa Familia:
ENVIRONMENT
ENVIRONMENT PREMIUM
PREMIUM

ETHICS
ETHICS GEOGRAPHY
GEOGRAPHY
‘Bolsa Familia’ involves conditional cash transfers (CCT) to the poorest
families in situations of food insecurity. This scheme provides stipends and GEOGRAPHY
GEOGRAPHY PREMIUM
PREMIUM
food to the poorest if they meet certain conditions, such as that children
attend school, or babies are vaccinated. GEOGRAPHY
GEOGRAPHY STATIC
STATIC

The programme has improved the lives and nutritional intake and has about
HEALTH
HEALTH HISTORY
HISTORY
12.4 million families enrolled.
It has been referred to as a ‘model of effective social policy’ by a former World HISTORY
HISTORY PREMIUM
PREMIUM

Bank president. The programme allows children to miss about 15% of classes;
HISTORY
HISTORY STATIC
STATIC
if a child gets caught missing more than that, payment is suspended for the
entire family. INDIAN
INDIAN POLITY
POLITY

INDIAN
INDIAN POLITY
POLITY PREMIUM
PREMIUM
‘Bolsa Familia’, while not a panacea, has a record of attaining its
target better INDIAN
INDIAN POLITY
POLITY STATIC
STATIC
than most CCT schemes. Brazil’s success, possible through strong
INTEGRITY
INTEGRITY &
& APTITUDE
APTITUDE
political
commitment, might be adaptable for State-level INTERNAL
INTERNAL SECURITY
SECURITY &
&
implementations in India DEFENSE
DEFENSE

INTERNATIONAL
INTERNATIONAL RELATIONS
RELATIONS

LITE
LITE SUBSCRIPTION
SUBSCRIPTION

BOLSA PREMIUM
PREMIUM

Família DesenvolvimentoSocial
MAINS
MAINS

MAINS
MAINS CORNER
CORNER PREMIUM
PREMIUM

eCombateàFome
PLUS
PLUS SUBSCRIPTION
SUBSCRIPTION
PREMIUM
PREMIUM

The Food Products Procurement Programme: POLITY

POLITY &
& GOVERNANCE
GOVERNANCE
It was also introduced in Brazil to ensure a market and reasonable price for
products from small-scale farmers. PRELIMS
PRELIMS
This programme involved direct procurement of products at harvest for
PRELIMS
PRELIMS CURRENT
CURRENT AFFAIRS
AFFAIRS
maintaining:
MAGAZINE
MAGAZINE
1. local food security stocks;
2. advanced procurement of products at planting time;
PRO
PRO SUBSCRIPTION
SUBSCRIPTION
3. local procurement by local governments to be used in school feeding
PREMIUM
PREMIUM
programmes; and
4. a programme supporting milk production and consumption, benefiting
REPORTS
REPORTS
producers with limited production and bargaining power
SAMAJHO'S
SAMAJHO'S CORNER
CORNER
PREMIUM
PREMIUM

SAMAJHO
SAMAJHO ANALYSIS
ANALYSIS

SAMAJHO
SAMAJHO CORNER
CORNER PREMIUM
PREMIUM
Issues in implementation
SCIENCE
SCIENCE &
& TECHNOLOGY
TECHNOLOGY

It has been observed that even though the Indian economy has achieved SELF
SELF PREPARATION
PREPARATION
remarkable economic growth along with a decline in poverty over the last two
SMAP
SMAP ANSWER
ANSWER WRITING
WRITING
decades, improvements in nutritional status have not kept pace with this
economic growth. SOCIETY
SOCIETY SPR
SPR
Greater access to subsidised grains for the poor was expected to reduce
SYLLABUS
SYLLABUS TELEGRAM
TELEGRAM
malnutrition, leading to a reduction in the number of underweight children.
However, most national-level surveys conducted during this period including the
National Family Health Survey did not Wnd any correlation between PDS
use and decline in malnutrition. Following are the issues with the existing PDS:

1. IdentiYcation of beneYciaries:
1. Large errors occur in exclusion and inclusion of Below Poverty Line (BPL)
and Above Poverty Line (APL) families in beneWciary data. The problem of
targeting is compounded by the lack of good quality regular data;
no regular o\cial estimates of the actual income of
households.
2. The entitled beneWciaries are not getting food grains while those that are
ineligible are getting undue beneWts. An expert group of the Ministry of
Rural Development on the methodology for conducting the BPL census
found that about 61% of the eligible population was excluded from
the BPL list while 25% of non-poor households were included in the
BPL list.
3. Another indicator of inaccurate classiWcation of beneWciaries is the
existence of ghost cards in several states. 'Ghost cards' are cards made
in the name of non-existent people. The existence of ghost cards indicates
that grains are diverted from deserving households into the open market.

2. Shortfall in storage capacity with FCI against the central pool

stock:
1. A performance audit by the CAG has revealed a serious shortfall in the
governments' storage capacity
2. After obligations under TPDS have been met, the food grains that have been
procured need to be stored as a buffer stock. While there has been a sharp
hike in procurement from, FCI‟s storage capacity (both owned and hired)
has not increased commensurate to the growth in procurement.

3. Rising Subsidy and Ynancial burden:

1. There are other issues with regard to trends in procurement vis-à-vis
production of foodgrains. As recent data show, the central government
procures about a third of the quantity of cereals produced
domestically. However, the amount slated for procurement is expected to
increase under the NFS Act, raising concerns regarding the sustainability of
such a food delivery mechanism.
2. There are also concerns regarding the Ynancial feasibility of such a
system. The centre bears a large Wnancial burden, the food subsidy
because the cost of procuring and delivering food grains is
about six times its sale price. It is anticipated that the food subsidy
will rise steadily due to the increased procurement of grains under the Act,
related costs and other factors.

4. Inconsistent quality:
1. The majority of the respondents reported that the quality of ration is
inconsistent— sometimes it is Wne, sometimes it is awful. The complaints
were mainly of bad quality of wheat. Most of the recipients were unsatisWed
with the quality of wheat and rice.

5. Corruption and leakages:

1. Despite a number of signiWcant, system-wide changes over recent years,
high levels of corruption and leakage continue to plague the PDS. Part of
this leakage occurs at the level of the fair price shops, where some store
owners exchange the high-quality goods provided from the government for
distribution through the PDS with lesser quality goods from the general
stores.
2. Dual pricing introduced through the TPDS is seen by some as an incentive
for stakeholders to divert commodities into the open market where they can
command a higher price.

f. Lack of transparency in the selection of procedure of PDS dealers

Supreme Court order on rotting of food grains in CAP storage

In August 2010, in the ongoing case of PUCL vs. Union of India, the Supreme Court
found that food grains were rotting due to inadequate storage. It directed the
central government to adopt long and short term measures to store and preserve
procured food grain, and prevent rotting, including:

1. constructing adequate FCI storage facilities in each state and division,

2. increasing allocation to BPL families,
3. opening Fair Price Shops for all days in the month,
4. distributing food grains to beneWciaries at low or no costs.

my
#AatmaNirbharBharatPackage GOV

OneNation
OneRationCard
forMigrants
WillenablemigrantbeneficiariestoaccessPublic
DistributionSystemfromanyFairPriceShop
(Intra-Stateportabilityintroducedin20States)

PartofthePM'sTechnologyDrivenSystem
Reforms

67crorebeneficiariesin23statescovering83%of
PDSpopulationtobecoveredbynationalportability
byAugust,2020

AlltheStates/UTstocompletefullFPS
(FairPriceShop)automation&100%
Nationalportabilitytobeachievedby
March,2021

11 20LAKHCROREFOR2020 Dated:14MAY,2020

Revamping
Revamping the
the PDS
PDS

1. End
End to
to End
End computerisation:
computerisation:
1. The Justice
Justice Wadhwa
Wadhwa Committee
Committee Report for PDS (2011)
recommended computerisation for two reasons: a Wrst one to prevent
diversion, and a second one to enable secure identiWcation at ration shops.
2. The Committee has recognised Chhattisgarh
Chhattisgarh as a model state for the
Wrst component, and Gujarat as a model for the second. Other states have
embarked upon the ambitious effort of computerising the whole supply
chain, most notably Karnataka,
Karnataka, where electronic
electronic PDS
PDS (e-PDS)
(e-PDS) covers
transactions with authorised wholesale dealers and a biometric
biometric
database
database of users.
3.

2. Universal
Universal PDS:
PDS: Tamil Nadu implements a universal
universal PDS
PDS, such that every
household is entitled to subsidised food grains. This way, exclusion errors are
reduced.
3. Digitalisation:
Digitalisation: States such as Chhattisgarh and Madhya Pradesh have
implemented IT measures to streamline TPDS, through the digitisation of ration
cards, the use of GPS
GPS tracking
tracking of
of delivery
delivery, and the use of SMS
SMS based
based
monitoring
monitoring by
by citizens
citizens.
4. Use
Use of
of Adhaar:
Adhaar: As part of BeneWciary Data Digitisation, States/UTs have been
requested to seed the Aadhaar Number wherever available so as to weed out
bogus/duplicate/ineligible beneWciaries. So far data of 61.25 per cent
beneWciaries have been linked to the Aadhaar Number.

1. Direct
Direct Cash
Cash Transfers:
Transfers: For checking of leakage and diversions, the
Government is also pursuing with States/UTs to opt for Direct BeneWt Transfer
(DBT) under which subsidy component will be credited
credited to
to bank
bank accounts
accounts of
of
beneYciaries
beneYciaries to ensure their entitlement making them free to buy foodgrains
from anywhere in the market.
2. Improving
Improving storage
storage capacities:
capacities: As it is understood that storage capacities
need to be improved ensuring proper storage of procured food grains for PDS
schemes. Thus, storage capacities have been augmented across the country by
using funds under plan schemes as well as through private investment in Public
Public
Private
Private Partnership
Partnership (PPP)
(PPP) mode.
mode. Under the Private
Private Entrepreneur
Entrepreneur
Guarantee
Guarantee (PEG)
(PEG) Scheme
Scheme, godowns are constructed through private
investors and hired by FCI for a guaranteed period of 10 years.
3. Checking
Checking corruption:
corruption:
1. Every State/UT Government is required to set up Vigilance
Vigilance Committee
Committee
at the State, District, Block and Fair Price Shop (FPS) level. These
Committees regularly supervise the implementation of all the schemes
covered under National Food Security Act and informs the District
District
Grievance
Grievance Redressal
Redressal O\cer
O\cer in writing of any violation as well as any
misappropriation of funds.
2. Under the new policy for allotment of Fair Price shop, preference is given to
Panchayats,
Panchayats, Self
Self Help
Help Groups,
Groups, Co-operatives
Co-operatives, in licensing of Fair
Price Shops.

Suggestions
Suggestions to
to increase
increase the
the e\cacy
e\cacy of
of PDS
PDS

1. To
To eliminate
eliminate exclusion
exclusion errors:
errors:
1. For including the excluded in the PDS during this pandemic, experts
like Abhijeet
Abhijeet Banerjee,
Banerjee, Amartya
Amartya Sen
Sen and
and Raghuram
Raghuram Rajan
Rajan have
gone on record recommending a temporary
temporary ration
ration card
card for
for aa period
period
of
of six
six months
months to everyone who is in need with minimal checks. They
have rightly remarked: “The cost of missing many of those who are in dire
need vastly exceeds the social cost of letting in some who could perhaps
do without it.”
2. The Delhi government has initiated this type of temporary e-coupon
e-coupon
system
system

2. Door-step
Door-step Delivery:
Delivery:
1. During this pandemic, all the respondents complained of overcrowding at
the ration collection points. They also expressed fear of catching the
disease due to the complete absence of social distancing norms. Door-step
Delivery is a good alternative to respond to such a situation.
2. If the doorstep delivery takes time to be rolled out, the government can
consider increasing and diversifying distribution points. Government
Government
schools
schools have already been used as PDS delivery points but other public
public
spaces
spaces such
such as
as sports
sports stadia,
stadia, public
public parks,
parks, post
post o\ces
o\ces can
can be
be
roped
roped in
in to
to distribute
distribute ration
ration as an emergency measure.

3. To
To meet
meet inadequate
inadequate food-supply:
food-supply:
1. various State governments should consider establishing community
community
kitchens
kitchens providing free food as done by the Kerala government to cater to
the hungry as an immediate measure. Kerala’s
Kerala’s community
community kitchens
kitchens
have been quite successful in the current situation.

4. Addressing
Addressing the
the food
food quality
quality issue:
issue:
1. technology-driven solutions have the potential to resolve immediate
challenges as well as long term challenges. Use of upcoming technologies
like ArtiWcial Intelligence, Machine Learning, and the Internet of Things
could be urgently adapted to eliminate
eliminate the
the menace
menace of
of adulteration
adulteration
and
and bad
bad quality
quality food grains.

5. Ensuring
Ensuring accountability:
accountability:
1. One mechanism for checking and making the process of distribution more
accountable was suggested by the Delhi
Delhi High
High Court
Court in a petition Wled by
Delhi Rozi Roti Adhikar Abhiyan which sought time-bound
time-bound redressal
redressal of
of
complaints
complaints regarding
regarding non-supply
non-supply of
of rations
rations and transparency in
the distribution of food grains.

f. A
A separate
separate cadre
cadre for
for ration
ration inspection:
inspection:
1. Experts suggest that a separate cadre of government employees be
established for this purpose and stationed at all the FPS. They could be
called Ration
Ration Inspectors
Inspectors and their job would be to ensure impartial and
hassle-free delivery of food grains from the FPS.
2. The formation of such a cadre only needs a notiWcation by the Ministry of
Consumer Affairs, Food and Public Distribution, and the legislation can take
place later.
3. We do have a provision for periodic inspection of FPS by the Circle food
supply olcers and Special Commissioners. Unfortunately, with no
no
accountability
accountability and
and lack
lack of
of supervision
supervision of
of these
these o\cers
o\cers,
inspections have been few and sporadic, and consequently, progress on the
ground has been negligible. Therefore, having a cadre of olcers
permanently stationed at the FPS would have an impact.

IMPACT
IMPACT OF
OF THE
THE PANDEMIC
PANDEMIC ON
ON ACCESS
ACCESS TO
TO FOOD
FOOD

The loss of livelihood induced by the pandemic has severely hampered

people’s access to food.
Given the fact that massive
massive unemployment
unemployment and
and loss
loss of
of livelihood
livelihood has
already engulfed the working millions due to the pandemic, and that some
members of the households are excluded from the PDS, the quantity of ration
provided by the government cannot act as a bulwark against hunger and want.
It naturally leads us to the question of how they survive for the rest of the days
without any source of income. Most of the respondents borrowed money to
meet their food requirements.
Thereafter consuming the ration from the PDS that lasts up to 15 days, they
borrow money from their neighbours and friends. Similarly, those who
received the kits only once in the last two months used their savings and
borrowed money to buy these items again.
Few are surviving on meagre savings while the rest are borrowing money from
friends and neighbours. None of them could access bank credit due to
lockdown. Each had developed their networks of informal borrowing, which
they relied upon in times of extreme distress.
In such a scenario, they expressed their anguish at falling deeper into a debt
debt
trap
trap and not having a clue as to when they will be able to come out of it. The
respondents declared that their meagre savings, ration from the PDS, and
borrowed money from neighbours and friends are their only hopes of survival.
To address this, PM
PM Garib
Garib Kalyaan
Kalyaan Anna
Anna Yojana
Yojana was launched

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