UPSC MainsGENERAL-STUDIES-PAPER-III202210 Marks150 Words
Q3.

What are the major challenges of Public Distribution System (PDS) in India ? How can it be made effective and transparent ?

How to Approach

The question requires a discussion of the challenges facing the Public Distribution System (PDS) in India and suggests solutions for improving its effectiveness and transparency. A good answer will structure itself around identifying key challenges (leakage, inclusion/exclusion errors, logistical issues, etc.), then propose solutions leveraging technology, administrative reforms, and better targeting. Mentioning recent reforms like the National Food Security Act (NFSA) 2013 and Direct Benefit Transfer (DBT) will add value. The answer should be concise, within the word limit, and demonstrate a clear understanding of the issue.

Model Answer

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Introduction

The Public Distribution System (PDS) is a cornerstone of India’s food security, aiming to provide subsidized food grains to vulnerable sections of society. Established in 1991, and further refined by the National Food Security Act (NFSA) 2013, it currently covers approximately 80 crore beneficiaries. However, despite its noble objectives, the PDS suffers from significant challenges that hinder its effectiveness. These range from inefficiencies in procurement and storage to widespread leakages and exclusion of deserving beneficiaries, necessitating urgent reforms to ensure food security for all.

Major Challenges of the PDS

The PDS faces a multitude of challenges, impacting its ability to deliver food security effectively:

  • Leakage and Diversion: A significant portion of food grains is diverted to the open market, often due to corrupt practices at various levels of the supply chain. This reduces the quantity available for legitimate beneficiaries.
  • Inclusion and Exclusion Errors: Identifying genuine beneficiaries remains a challenge. Inclusion errors lead to resources being wasted on those who don’t need them, while exclusion errors deny benefits to the truly deserving.
  • Poor Infrastructure: Inadequate storage facilities lead to spoilage and wastage of food grains. Transportation bottlenecks and lack of efficient distribution networks further exacerbate the problem.
  • Lack of Transparency: Limited transparency in the PDS operations makes it difficult to track the flow of food grains and identify instances of corruption.
  • Subsidized Rates & Black Marketing: The significant difference between PDS prices and market prices incentivizes black marketing and hoarding.
  • Ghost Beneficiaries: The existence of fake ration cards and ghost beneficiaries inflates the demand and leads to diversion of resources.

Making PDS Effective and Transparent

Several measures can be taken to improve the effectiveness and transparency of the PDS:

  • Digitization and Computerization: Implementing end-to-end computerization of the PDS, including online tracking of food grains from procurement to distribution, can significantly reduce leakages.
  • Aadhaar Enabled Public Distribution System (AEDPS): Utilizing Aadhaar for biometric authentication of beneficiaries can eliminate ghost beneficiaries and ensure that benefits reach the intended recipients.
  • Direct Benefit Transfer (DBT): Shifting to DBT, where cash transfers are provided directly to beneficiaries, empowers them to purchase food grains from the open market, reducing the scope for corruption and improving choice.
  • Strengthening Supply Chain Management: Investing in modern storage facilities, efficient transportation networks, and improved inventory management can minimize wastage and ensure timely delivery of food grains.
  • Social Audit and Grievance Redressal Mechanisms: Establishing robust social audit mechanisms and grievance redressal systems can enhance accountability and transparency.
  • Rationalization of Subsidies: Periodically reviewing and rationalizing subsidies can ensure that they are targeted towards the most vulnerable sections of society.
  • Strengthening Fair Price Shops (FPS): Empowering FPS dealers, providing them with adequate incentives, and holding them accountable for efficient distribution can improve the last-mile delivery of food grains.

Recent Initiatives: The ‘One Nation One Ration Card’ (ONORC) scheme, implemented across all states and UTs, allows beneficiaries to access PDS benefits from any FPS in the country, enhancing portability and convenience. The Integrated Food Department Management System (IFDMS) is also being implemented to improve food grain management.

Challenge Solution
Leakage & Diversion Digitization, AEDPS, Social Audit
Inclusion/Exclusion Errors Improved beneficiary identification, periodic surveys
Poor Infrastructure Investment in storage & transportation

Conclusion

The PDS remains a vital component of India’s food security apparatus. Addressing the challenges of leakage, inefficiency, and exclusion is crucial for ensuring that it effectively serves its intended purpose. Leveraging technology, strengthening administrative oversight, and promoting transparency through measures like digitization and DBT are essential steps towards creating a more robust and equitable PDS. Continuous monitoring, evaluation, and adaptation are necessary to ensure the long-term sustainability and effectiveness of this critical program.

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 approximately 80 crore people to receive subsidized food grains, aiming to ensure food security for vulnerable sections of the population.
Direct Benefit Transfer (DBT)
A system where cash subsidies are directly transferred to the bank accounts of beneficiaries, empowering them to make their own purchasing decisions.

Key Statistics

According to a 2021 report by the Food Corporation of India (FCI), approximately 5.8 million tonnes of food grains were lost due to storage issues between 2012-2017.

Source: Food Corporation of India (FCI) Report, 2021 (Knowledge Cutoff)

As of December 2023, over 90% of PDS transactions are now conducted using Point of Sale (POS) devices, enhancing transparency and accountability.

Source: Department of Food and Public Distribution, Government of India (December 2023)

Examples

Chhattisgarh’s Mukhyamantri Annapurna Yojana

Chhattisgarh’s scheme provides highly subsidized rice to vulnerable families, demonstrating a state-level effort to enhance food security beyond the NFSA provisions.

Frequently Asked Questions

What is the difference between TPDS and NFSA?

Targeted Public Distribution System (TPDS) was the earlier system, while the NFSA 2013 is a legal framework that provides statutory backing to the PDS, defining eligibility criteria and entitlements.

Topics Covered

EconomySocial WelfareGovernanceFood SecurityPoverty AlleviationAdministrative Reforms