UPSC MainsECONOMICS-PAPER-II202210 Marks150 Words
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Q2.

Discuss the features of targeted Public Distribution System in India and point out the obstacles in its implementation.

How to Approach

This question requires a focused answer on the Targeted Public Distribution System (TPDS) in India. The approach should begin by defining TPDS and outlining its key features. Then, a detailed discussion of the obstacles hindering its effective implementation is crucial. Structure the answer by first explaining the features, then categorizing the obstacles (administrative, infrastructural, beneficiary-related, etc.). Use examples and data to support your points. Conclude by suggesting potential improvements.

Model Answer

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Introduction

The Public Distribution System (PDS) is a cornerstone of India’s food security policy, evolving over decades to address food scarcity and ensure access to essential commodities for vulnerable sections of society. Initially universal, the PDS underwent a significant shift towards targeting with the introduction of the Targeted Public Distribution System (TPDS) in 1997. TPDS aimed to improve the efficiency and effectiveness of the PDS by focusing on the ‘below poverty line’ (BPL) population. However, despite its noble intentions, the implementation of TPDS has been fraught with challenges, hindering its ability to achieve its objectives fully.

Features of Targeted Public Distribution System (TPDS)

The TPDS represents a significant departure from the earlier universal PDS. Its key features include:

  • Identification of Beneficiaries: TPDS relies on identifying eligible households based on poverty criteria determined by the states. Initially, the BPL list was prepared by state governments. Later, the Socio-Economic and Caste Census (SECC) 2011 data was used for identifying beneficiaries.
  • Decentralized Procurement and Allocation: While the central government procures grains through the Food Corporation of India (FCI), the allocation and distribution to states are based on their assessed needs and poverty levels.
  • Subsidized Prices: Eligible households receive essential commodities like wheat, rice, sugar, and kerosene at highly subsidized rates. The central government bears the difference between the economic cost and the subsidized price, known as food subsidy.
  • Revamped PDS (RPS): Introduced in 2015, the Revamped PDS aimed to further improve the system through measures like Direct Benefit Transfer (DBT) for kerosene, end-to-end computerization, and diversification of the commodity basket.
  • National Food Security Act (NFSA) 2013: The NFSA legally entitled 75% of the rural population and 50% of the urban population to subsidized food grains, effectively formalizing and expanding the scope of TPDS.

Obstacles in Implementation of TPDS

Despite the framework, several obstacles impede the effective implementation of TPDS:

1. Identification and Inclusion/Exclusion Errors

The process of identifying beneficiaries is prone to errors. Inclusion errors occur when ineligible households are included in the BPL list, while exclusion errors happen when deserving households are left out. The SECC 2011 data, while comprehensive, had its limitations and inaccuracies, leading to these errors. A study by the National Council of Applied Economic Research (NCAER) in 2011 highlighted significant exclusion errors in several states.

2. Diversion of Food Grains

A major challenge is the diversion of food grains from the PDS to the open market. This happens at various stages – during transportation, storage, and distribution. Weak monitoring mechanisms and corruption contribute to this diversion. According to reports, up to 40% of food grains were diverted in some states before the implementation of NFSA and digitalization.

3. Weak Infrastructure and Logistics

Inadequate storage facilities, poor transportation networks, and a lack of efficient distribution infrastructure hamper the smooth functioning of TPDS. Many Fair Price Shops (FPS) lack proper storage space, leading to spoilage of grains. The lack of rural connectivity also poses a challenge in reaching remote areas.

4. Inefficiencies in Procurement and Distribution

The procurement process, managed by the FCI, faces challenges related to timely procurement, quality control, and storage capacity. Delays in distribution and long queues at FPS also discourage beneficiaries from utilizing the system.

5. Lack of Transparency and Accountability

Limited transparency in the operations of TPDS and a lack of accountability among officials contribute to corruption and inefficiencies. The absence of social audits and grievance redressal mechanisms further exacerbates the problem.

6. Limited Awareness among Beneficiaries

Many eligible beneficiaries are unaware of their rights and entitlements under TPDS. This lack of awareness prevents them from accessing the benefits of the scheme.

Obstacle Description Impact
Identification Errors Inaccurate BPL lists leading to inclusion/exclusion errors. Denial of benefits to deserving households; leakage of resources.
Diversion Food grains siphoned off to the open market. Reduced availability of subsidized food; increased food prices.
Infrastructure Poor storage, transportation, and distribution facilities. Spoilage of grains; delays in delivery; accessibility issues.

Conclusion

The TPDS, despite its inherent strengths in providing food security, faces significant implementation challenges. Addressing these obstacles requires a multi-pronged approach, including strengthening beneficiary identification through robust data verification, improving infrastructure, enhancing transparency and accountability through digitalization and social audits, and raising awareness among beneficiaries. The successful implementation of the NFSA and the continued refinement of the TPDS are crucial for ensuring food security for all Indians, particularly the most vulnerable sections of society. Further reforms focusing on direct benefit transfer and end-to-end digitization are essential for a more efficient and equitable PDS.

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

Food Subsidy
The difference between the economic cost of food grains (procurement, storage, and distribution) and the subsidized price at which they are sold to beneficiaries under the PDS.
Fair Price Shop (FPS)
Retail outlets under the PDS, authorized to distribute subsidized food grains and other essential commodities to eligible beneficiaries.

Key Statistics

As of 2023-24, the total food subsidy burden is estimated to be over ₹2.7 lakh crore (Source: Department of Food and Public Distribution, as of knowledge cutoff December 2023).

Source: Department of Food and Public Distribution

According to the State of Food Security and Nutrition in India Report 2021, approximately 22.7% of the Indian population is considered food insecure.

Source: State of Food Security and Nutrition in India Report 2021

Examples

Chhattisgarh’s PDS Model

Chhattisgarh has been lauded for its efficient PDS, characterized by computerized distribution, robust grievance redressal mechanisms, and regular social audits. This has resulted in reduced diversion and improved access to food grains for beneficiaries.

Frequently Asked Questions

What is the difference between TPDS and NFSA?

TPDS was the targeted approach introduced in 1997. The NFSA 2013 legally formalized and expanded the scope of TPDS, providing legal entitlement to subsidized food grains to a larger section of the population.

Topics Covered

EconomyGovernanceFood SecuritySocial WelfarePublic Policy