#86: GS3 | Public Distribution System
Objectives, Functioning, Limitations, and Revamping
Public Distribution is an important topic of GS3. Sharing GS3 Mains notes on this topic compiled by @Conquerias24, a Post Graduate in Economics from Madras School of Economics. Do follow him @Conquerias24!
What is PDS?
A food security system for the poor established by the GoI under the Ministry of Consumer Affairs
Responsibility of Centre - Procurement, storage, transportation & bulk allocation of food grains
Responsibility of States - Distribution of food grains to consumers via Fair Price Shops
Objectives of PDS
Maintain buffer stocks
Ensure equitable distribution
Stabilize market price of commodities
Attempt socialization in the matter of distribution of essential commodities
Provide food grains & essential items to vulnerable sections at reasonable prices
Functioning of PDS
Shared responsibilities b/w states & cente
Respective states makes the list of eligible beneficiaries
The Centre procures the foodgrains from farmers at MSP
The consumer purchases the grains from the fair price shops
The state then transports the grains to the respective fair price shops
This is sold to states at Central Issue Price & transports the grains to godowns in each state
Limitation of PDS
1. Issues with identification of beneficiary
Lack of good quality data
No regular official estimates of household income
Errors in exclusion & inclusion of BPL & APL families
Existence of ghost cards - Made in the name of non-existent people
2. Shortage in FCI’s storage capacity
Performance audit by CAG showed serious shortfall in storage capacity
While procurement has increased, storage capacity has not increased much
3. Rising subsidy & financial burden
Concerns with financial feasibility of the system
Cost of procurement & delivering is around 6x its sale price
Estimated that subsidy burden will rise due to increasing procurement by govt.
4. Inconsistent Quality
Complaints regarding poor quality of food grains
5. Corruption & Leakages
High levels of corruption & leakages by ration shop owners, FCI employees etc.
Black marketing of food grains
6. Lack of transparency in selection procedure of PDS dealers
Revamping of PDS
End to End Computerization
Recommended by Justice Wadhwa Committee (2011) on PDS
To prevent diversion & to enable secure identification at ration shops
Model states - Chhattisgarh & Gujarat
Universal PDS
Exclusion errors are reduced
Eg: Tamil Nadu
Use of Aadhar
To weed out bogus/duplicate/ineligible beneficiaries
Improving Storage Capacities
Augmentation of storage capacities by involving private sector in PPP model
Checking Corruption
Via Setting up vigilance committees at state, district, block & FPS level
Post of District Grievance Redressal Officer for taking action against violation as well as misappropriation of funds.
Direct Cash Transfer
To check leakages and diversions
Suggestions to Improve PDS
To eliminate exclusion errors
Temporary ration cards for 6 month for who is in need with minimal checks (Suggested by Abhijit Banerjee, Amartya Sen & Raghuram Rajan)
Delhi Model: Temporary e-coupon system
Door-step Delivery
To ease out overcrowding at Ration shops and improve quality of service delivery
To address issue of food quality
Technology driven solutions - AI/ML/IOT could be used to eliminate adulteration & poor food quality
Ensuring Accountability
Unbiased inspection of FPSs by state department of food & civil supply should be arranged on a regular basis
Improve efficiency in functioning
Distribution of food coupons to stop leakages at FPS level
Introduction of electronic weighing machines instead of conventional ones
Display board information in local languages
Importance of SMS alert at for beneficiaries
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