PUBLIC DISTRIBUTION SYSTEM

  • The Public distribution system (PDS) is an Indian food security system established under the Ministry of Consumer Affairs, Food, and Public Distribution.
  • PDS evolved as a system of management of scarcity through distribution of food grains at affordable prices.
  • The Public Distribution System (PDS) in India needs reform to improve efficiency and reduce wastage.

Key Issues with PDS

  • High Leakages: 28% average leakages, with some states as high as 63%, causing massive wastage.
  • Excessive Coverage: Currently covers 57% of the population, leading to inefficient resource allocation.
  • Nutritional Gaps: Persistent malnutrition and declining spending on nutritious foods like pulses and vegetables.
  • Economic Loss: Leakages contribute to high costs, with ₹2.7 lakh crore spent on food subsidies in FY 2023.
  • Poverty and Hunger: Despite progress, 12.9% of Indians live on less than $2.15/day, needing more efficient targeting.

Suggested Reforms

  • Target Poorest Only: Limit free food coverage to the bottom 15% (Antyodaya category).
  • Introduce Cost Sharing: Charge those above the Antyodaya level at least half of MSP.
  • Digital Tracking: Use PoS systems and smart cards for real-time monitoring and leak-proof distribution.
  • Nutritional Focus: Include more nutritious items like pulses, millets, and fortified staples.
  • Enhanced Accountability: Implement third-party monitoring and public-private partnerships for better oversight.

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