UPSC MainsECONOMICS-PAPER-II201910 Marks150 Words
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Q15.

What reforms would you advocate to make the public distribution system (PDS) in India more effective?

How to Approach

This question requires a multi-faceted answer focusing on the shortcomings of the current PDS and proposing concrete reforms. The answer should cover aspects like targeting, efficiency, transparency, and technology integration. A structure involving identifying key problems, proposing solutions categorized by these areas, and briefly discussing implementation challenges would be ideal. Mentioning recent initiatives like One Nation One Ration Card (ONORC) is crucial. The answer should demonstrate an understanding of both the economic and social dimensions of food security.

Model Answer

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Introduction

The Public Distribution System (PDS) is a cornerstone of India’s food security apparatus, aiming to provide subsidized food grains to vulnerable sections of society. Established in 1991, evolving from earlier rationing systems, it currently serves over 80 crore beneficiaries. However, the PDS suffers from significant leakages, inefficiencies, and exclusion errors, hindering its effectiveness. Recent initiatives like the National Food Security Act (NFSA) 2013 and the ONORC scheme attempt to address these issues, but further reforms are essential to ensure equitable and efficient food distribution.

Addressing Targeting Issues

One of the primary challenges is inaccurate beneficiary identification. Current practices often rely on outdated census data and are prone to inclusion and exclusion errors.

  • Aadhaar Integration: Strengthening the linkage of PDS with Aadhaar, while respecting privacy concerns, can help de-duplicate beneficiary lists and reduce ghost beneficiaries.
  • Socio-Economic Caste Census (SECC) 2011: Utilizing updated data from the SECC 2011 for identifying eligible households, coupled with periodic surveys, can improve targeting accuracy.
  • Dynamic Identification: Moving beyond static lists to a dynamic identification system that automatically includes and excludes beneficiaries based on real-time data (e.g., income, employment) can enhance inclusivity.

Improving Efficiency and Reducing Leakages

Significant quantities of food grains are lost due to inefficiencies in storage, transportation, and distribution. Leakages occur at various stages, including diversion to the open market.

  • Direct Benefit Transfer (DBT): Expanding DBT for food subsidies, allowing beneficiaries to purchase food grains from the open market, can reduce transportation costs and leakages. (Pilot projects in Chandigarh and Puducherry have shown promising results).
  • Computerization of PDS: Complete end-to-end computerization of PDS operations, including supply chain management, stock monitoring, and distribution, is crucial.
  • Strengthening Storage Infrastructure: Investing in modern storage facilities, including warehouses with temperature control, can minimize food grain wastage. The FCI needs modernization.
  • Decentralized Procurement: Encouraging decentralized procurement by state governments can reduce transportation costs and support local farmers.

Enhancing Transparency and Accountability

Lack of transparency and accountability contribute to corruption and inefficiencies in the PDS.

  • Social Audit: Implementing regular social audits, involving local communities in monitoring PDS operations, can enhance transparency and accountability.
  • Grievance Redressal Mechanisms: Establishing effective grievance redressal mechanisms, including online portals and toll-free helplines, can address beneficiary complaints promptly.
  • Public Disclosure of Information: Making information about PDS allocations, stock levels, and distribution publicly available can promote transparency.

Leveraging Technology

Technology can play a transformative role in improving the PDS.

  • Mobile Applications: Developing mobile applications for beneficiaries to register complaints, track their entitlements, and provide feedback.
  • Biometric Authentication: Utilizing biometric authentication (fingerprint or iris scan) at the point of sale to prevent fraudulent transactions.
  • Blockchain Technology: Exploring the use of blockchain technology to create a secure and transparent supply chain for food grains.
Challenge Proposed Reform
Inaccurate Targeting Aadhaar Integration, SECC Data, Dynamic Identification
Leakages & Wastage DBT, Computerization, Modern Storage
Lack of Transparency Social Audit, Grievance Redressal, Public Disclosure

Conclusion

Reforming the PDS is vital for ensuring food security and reducing poverty in India. A combination of technological interventions, improved targeting mechanisms, enhanced transparency, and strengthened accountability is necessary. While initiatives like ONORC are steps in the right direction, sustained efforts and political will are crucial for realizing the full potential of the PDS and making it a truly effective instrument for social welfare. Addressing logistical challenges and ensuring equitable access for all remain paramount.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

National Food Security Act (NFSA)
The NFSA 2013 legally entitles 75% of the rural population and 50% of the urban population to receive subsidized food grains.
Fair Price Shop (FPS)
FPS are the retail outlets under the PDS, responsible for distributing subsidized food grains and other essential commodities to eligible beneficiaries.

Key Statistics

As of 2023, approximately 80 crore beneficiaries are covered under the PDS, making it one of the largest food distribution programs in the world.

Source: Ministry of Consumer Affairs, Food & Public Distribution (as of knowledge cutoff)

According to a 2018 study by the World Food Programme, approximately 40-50% of subsidized food grains are diverted from the PDS, highlighting the extent of leakages.

Source: World Food Programme (as of knowledge cutoff)

Examples

Chhattisgarh’s PDS Model

Chhattisgarh has been lauded for its effective PDS, characterized by robust computerization, efficient grievance redressal, and a focus on transparency. This has resulted in reduced leakages and improved beneficiary satisfaction.

Frequently Asked Questions

What are the challenges in implementing DBT in the PDS?

Challenges include ensuring access to banking services for all beneficiaries, particularly in remote areas, and addressing concerns about price volatility in the open market.

Topics Covered

EconomySocial IssuesFood SecurityPoverty AlleviationPublic Policy