Model Answer
0 min readIntroduction
The Public Distribution System (PDS) is India's largest food security and anti-poverty program, designed to distribute essential food commodities like rice, wheat, and sugar at highly subsidized prices to vulnerable sections of society. Evolving from a universal system to the Targeted Public Distribution System (TPDS) in 1997 and further strengthened by the National Food Security Act (NFSA) 2013, it aims to ensure food accessibility and mitigate hunger. Despite its pivotal role in cushioning millions from food price shocks and contributing to poverty reduction, the PDS continues to grapple with fundamental structural shortcomings that impede its full effectiveness and transparency.
Structural Shortcomings of the Public Distribution System (PDS) in India
The PDS, despite its vast reach and crucial role, is plagued by several deep-rooted structural issues:- Leakages and Diversion: This is arguably the most significant shortcoming. Subsidized food grains intended for beneficiaries are often diverted to the open market, sold at higher prices, or pilfered.
- According to a recent report by the Indian Council for Research on International Economic Relations (ICRIER) based on the Household Consumption Expenditure Survey (HCES) 2022-23, approximately 28% of the food grains allocated through PDS do not reach their intended recipients, amounting to an annual financial loss of over ₹69,000 crore.
- The Shanta Kumar Committee (2015) previously reported a 46% leakage in PDS in its 2011-12 assessment. While efforts like Point of Sale (PoS) machines and Aadhaar-based authentication have reduced leakages, the problem persists.
- Targeting Errors: Despite the shift to TPDS to focus on Below Poverty Line (BPL) households, errors in beneficiary identification remain substantial.
- Inclusion Errors: Non-poor households wrongly receive subsidized grains.
- Exclusion Errors: Genuinely needy and eligible households are left out due to outdated databases, complex verification processes, or lack of proper documentation. The central government still uses 2011 census figures, leading to an estimated 100 million people being excluded from coverage.
- Supply Chain Inefficiencies and Storage Problems: The journey of food grains from procurement to Fair Price Shops (FPS) is often riddled with inefficiencies.
- Inadequate Storage: Food Corporation of India (FCI) often faces shortfalls in storage capacity, leading to wastage of grains.
- Poor Last-Mile Connectivity: Remote and geographically challenging areas suffer from irregular or delayed deliveries due to poor infrastructure.
- Logistical Hurdles: Transportation issues, multiple handling points, and lack of real-time tracking contribute to pilferage and spoilage.
- Quality Concerns: Beneficiaries frequently report dissatisfaction with the quality of food grains supplied through PDS.
- Issues range from substandard grains to adulteration, which undermines the nutritional objective of the system.
- Limited Nutritional Diversity: The PDS primarily focuses on staples like rice and wheat, neglecting a broader range of nutritious food items.
- This monocropping approach limits dietary diversity and does not adequately address micronutrient deficiencies, contributing to persistent malnutrition despite calorie intake.
- Financial Burden: The high economic cost of procuring, storing, and distributing food grains places a significant financial strain on the government.
- The cost of obtaining and shipping food grains can be several times their retail price, raising questions about the fiscal sustainability of the scheme.
- Non-viability of Fair Price Shops (FPS): Many FPS dealers struggle with low margins, leading to malpractices like diversion of grains to supplement income.
Conclusion
In conclusion, while the PDS has been instrumental in ensuring food security for a large populace, its structural shortcomings related to leakages, targeting errors, supply chain inefficiencies, and quality issues significantly undermine its effectiveness. These challenges lead to substantial financial losses and fail to fully meet the nutritional needs of the most vulnerable. Addressing these requires a multi-pronged approach involving robust technological integration, continuous beneficiary verification, improved logistics, diversification of food basket, and enhanced accountability mechanisms to transform PDS into a truly efficient and equitable system.
Answer Length
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