PUBLIC DISTRIBUTION SYSTEM IN INDIA

Introduction

PDS is a food security system developed by the Government of India and managed by Food Corporation of India Food Security System can be defined as the measure of the ability ensure access to essential nutrition. It refers to a household's or country's ability to provide future physical and economic access to sufficient, safe, and nutritious food that fulfills the dietary needs and food preferences for living an active and healthy lifestyle.

Overview of PDS

1 % of GDP is spent on subsidies each year. Delivery to consumers is done through Fair Price Shops. Currently 5 lac FPS are established in India. PDS covers the following items
Food Grains Sugar Kerosene etc.

Limits
35 kg for Below Poverty Line 15 kg for Above Poverty Line

Management

Central Government
Procurement
Storage Logistics

Bulk

allocation

State Governments
Distribution

across individual state Delivery to end customers

Fall-Outs

Generally, the consumers get inferior food grains in ration shops. Deceitful dealers replace good supplies received from the F.C.I (Food Corporation of India) with inferior stock. Many retail shopkeepers have large number of bogus cards to sell food grains in the open market. Many FPS dealers resort to malpractice since they acquire less salary. Poor supervision of FPS and lack of accountability have spurred a number of middlemen who consume a good proportion of the stock meant for the poor. The stock assigned to a single family cannot be bought in installments. Many BPL families are not able to acquire ration cards either because they are seasonal migrant workers or because they live in unauthorized colonies. A lot of families also mortgage their ration cards for money.

Suggestions for Improvement

Vigilance squad should be strengthened to detect corruption, which is an added expenditure for taxpayers. Personnel-in-charge of the department should be chosen locally. Margin of profit should be increased for honest business, in which case the market system is more apt anyway. F.C.I. and other prominent agencies should provide quality food grains for distribution, which is a tall order for an agency that has no real incentive to do so. Frequent checks & raids should be conducted to eliminate bogus and duplicate cards, which is again an added expenditure and not fool proof. The Civil supplies Corporation should open more Fair Price shops in rural areas. The Fair Price dealers seldom display rate chart and quantity available in the block-boards in front of the shop. This should be enforced.

Food Stamps: A New Experiment

Food stamps is an indirect financial support given to the needy and to the underprivileged. Support can be in the form of
Coupons Vouchers Electronic card transfer etc.

Available at Banks, Post Offices etc. The state government would then pay back. The scheme is currently being tries in a few districts of India to know its viability.