PUBLIC DISTRIBUTION SYSYTEM

PDS means distribution of essential commodities to a large number of people through a network
of FPS on a recurring basis. The commodities are as follows :-

· Wheat

Rice

· Sugar

·  Kerosene

        PDS evolved as a major instrument of the Government’s economic policy for ensuring
availability of foodgrains to the public at affordable prices as well as for enhancing the food
security for the poor. It is an important constituent of the strategy for poverty eradication and is
intended to serve as a safety net for the poor whose number is more than 330 million and are
nutritionally at risk. PDS with a network of about 4.99 lakh Fair Price Shops (FPS) is perhaps the
largest distribution network of its type in the world.

        PDS is operated under the joint responsibility of the Central and the State Governments.
The Central Government has taken the responsibility for procurement, storage, transportation
and bulk allocation of foodgrains, etc. The responsibility for distributing the same to the
consumers through the network of Fair Price Shops (FPSs) rests with the State Governments.
The operational responsibilities including allocation within the State, identification of families
below poverty line, issue of ration cards, supervision and monitoring the functioning of FPSs rest
with the State Governments.

 PDS provides rationed amounts of basic food items and other non food products at below
market prices to consumers through a network of Fair Price Shops (FPS) disseminated over the
country. However the food grains supplied by the ration shops are not enough to meet the
consumption needs of the poor or are of inferior quality. The average level of consumption of
PDS grains in India is only 1 kg per person / month.
Public Distribution System

The distribution of essential commodities through fair price shops at government-controlled

prices has come to be known as the public distribution system. There are various reasons for the
setting up of the distribution system in India.

OBJECTIVES OF PDS

 Supply of essential commodities at reasonable prices;

 Prevent monopolistic, restrictive and unfair trade practices;
 Ensure supply of inputs to priority sectors;
 Ensure price stability; and
 Ensure minimum returns to producers.
 Prevention of hoarding and black-marketing;
Maintain quality of goods and services; public distribution system is a national food security
system that distribute subsidy food to India’s poor. The major distributed commodities are
wheat , rice ,sugar, and kerosene. Food corporation of India managed surplus of food from
increased crop yield PDS has a network of 478,000 fair price shops (fps).It is jointly operated by
Central and state government.

The department of public distribution main responsibility of management of food economy of

the country .The main objectives are

-remunerative rates for farmers

-supply of food grains at reasonable prices to the consumers through PDS.

Department formulate policies regarding procurement, storage, movement and distribution of

food grains , buffer stocking policy and matters relating to food security, Quality control; of
wheat ,rice and stored and distribute to public agencies in the country.

storage facility for maintaining reserves of rice and wheat research and dissemination of
techniques of scientific storage of coarse grains ,rice and wheat
Goods to be included in the public distribution system

Since distribution is a highly complex matter, only the most essential goods of mass consumption should

be brought under the public distribution system, e.g., cereals, sugar, edible oils and vanaspati, kerosene,

soft coke, controlled cloth, tea, toilet soap and washing soap, match boxes, exercise books for children

etc. Even though all these goods are essential, there can be regional variations in preferences-rice in the

South and West Bengal and wheat in North and Central India. Besides, different commodities may

assume importance in the scheme of distribution at different points of time. The main emphasis should be

to cover the whole country and supply the essential goods through the public distribution system at

reasonable prices only to the vulnerable sections of people in the country.

Supplies to the public distribution system

Both Central and state governments have made arrangements to procure essential commodities and

supply them through the public distribution outlets. In the case of foodgrains, FCI undertakes the

necessary operations. In regard to sugar, FCI undertakes the operations in some states and in others, civil

supplies corporations or co-operatives undertake these operations. The State Trading Corporation (STC)

has been entrusted with the responsibility of importing and distributing edible oils. The Department of

Coal and Coal India Limited (CIL) handle soft coke. Kerosene is being handled by the public sector

corporations like Indian Oil Corporation (IOC), Hindustan Petroleum and Bharat Petroleum. The

production of controlled cloth has now been generally entrusted to the National Textile Corporatition

(NTC) and distributed through the National Consumers Co-operative Federation (NCCF). The NCCF also

procures and distributes tea, while coffee is being supplied by the Coffee Board. In ordinary times, these

arrangements have been functioning smoothly. But the government has to keep a continuous watch over

SOME FALLOUTS OF THE P.D.S SYSTEM

1. Generally, the consumers get inferior food grains in ration shops.

2 Many retail shopkeepers sell food grains in the open market.

3 Despite the PDS, India accounts for over 400 million poor and hungry people. Numerous malpractices

make safe and nutritious food inaccessible and unaffordable to many poor

Measures to Improve PDS

1. It is essential that coarse grains are introduced into the PDS. Half of the food grains allocation

under the PDS should be of coarse grains, and in states where the staple diet of the poor is coarse

grains no other grains should be distributed.

2. Sugar to be removed from the PDS. Instead gur (jaggery), which is a substitute for sugar in many

places, may be introduced into the PDSI Most families in cities keep ration could and buy sugar

and if this incentive is withdrawn, AB households will not buy ration at all. This will make the

PDS largely different for the rich and the middle class.

3. Government should open ration shops at the places where poor people live. Bihar, U MP Orisso

and Rajasthan have pockets of poverty and it is at these pockets that ration shops need to be

opened. If is only then that the real purpose of PDS, viz, removing poverty, will be realised.

4. In order to discourage traders from diverting foodgrains from PDS stream to the open market,

panchayats may be involved in the system of distribution. Services of panchayats may also be

used to identify the rural poor.

5. It may also be stated that PDS alone will not solve the problem of food security. Apart from

higher economic growth, a mix of policies such as effective implementation of anti-poverty

programmes, including PDS, controlling inflation, improving health facilities is needed for

increasing food security in the country.