The Public Distribution System (PDS) is an Indian food security system which evolved as a system for distribution of food grains at affordable prices and management of emergency situations. It distributes subsidized food and non-food items to India’s poor. This scheme was launched in June 1947. It functions through a network of Fair Price Shops at a subsidized price on a recurring basis.

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Importance of PDS:

• Food grains to the poor, at prices lower than the price of food grains at private shops.
• Food grains are directly purchased from farmers, assuring farmers with a greater price.
• Make goods available to consumers, especially the disadvantaged /vulnerable sections of society at fair prices.
• Rectify the existing imbalances between the supply and demand for consumer goods. Check and prevent hoarding and black marketing in essential commodities.
• Ensure social justice in distribution of basic necessities of life.
• Even out fluctuations in prices and availability of mass consumption goods.
• Support poverty-alleviation programmes, particularly, rural employment programmes, (SGRY/SGSY/IRDP/ Mid-day meals, ICDS, DWCRA, SHGs and Food for Work and educational feeding programmes.

Challenges faced by PDS:

Procurement:

• Open-ended Procurement: All incoming grains accepted even if buffer stock is filled creating a shortage in the open market.
• The recent implementation of Nation food security act would only increase the quantum of procurement resulting in higher prices for grains.
• The gap between required and existing storage capacity.
• The provision of minimum support price has encouraged farmers to divert land from production of coarse grains that are consumed by poor, to rice and wheat.

Storage:

• Inadequate storage capacity with FCI.
• Food grains rotting or damaging on the CAP or Cover & Plinth storage.
• The storage of foodgrains inculcates high carrying costs on the government.

Allocation of food grains:

• Identification of poor by the states is not fool proof. A large number of poor and needy persons are left out and a lot of fake cards are also issued.
• Illicit Fair Price shops: The shop owners have created a large number of bogus cards or ghost cards(cards for nonexistent people) to sell food grains in the open market.

Transportation:

• Leakage and diversion of food grains during transportation.
• Uneven distribution of Food generations, procurement and distribution. For example: north eastern states are very far from Punjab and Haryana, from where wheat is procured. To transport food grains from Punjab to far flung areas in North east will entail cost and time both.

Other issues:

• Many times, good quality food grains are replaced with poor quality cheap food grains.
• Public distribution system includes only few food grains such as wheat and rice, it does not fulfil the requirement of complete nutrition.
• Fair Price Shop owner gets fake Ration cards and sell the food grains in the open market.

PDS Reforms undertaken by Government:

• Aadhaar Linked and digitized ration cards: This allows online entry and verification of beneficiary data. It also enables online tracking of monthly entitlements and off-take of foodgrains by beneficiaries.
• Computerized Fair Price Shops: FPS automated by installing ‘Point of Sale’ device to swap the ration card. It authenticates the beneficiaries and records the quantity of subsidized grains given to a family.
• DBT: Under the Direct Benefit Transfer scheme, cash is transferred to the beneficiaries’ account in lieu of foodgrains subsidy component. They will be free to buy food grains from anywhere in the market. For taking up this model, pre-requisites for the States/UTs would be to complete digitization of beneficiary data and seed Aadhaar and bank account details of beneficiaries. It is estimated that cash transfers alone could save the exchequer Rs.30,000 crore every year.
• Use of GPS technology: Use of Global Positioning System (GPS) technology to track the movement of trucks carrying foodgrains from state depots to FPS which can help to prevent diversion.
• SMS-based monitoring: Allows monitoring by citizens so they can register their mobile numbers and send/receive SMS alerts during dispatch and arrival of TPDS commodities
• Use of web-based citizens’ portal: Public Grievance Redressal Machineries, such as a toll-free number for call centers to register complaints or suggestions.

Way forward:

• Primacy should be given to ensuring that the functioning of FCI is streamlined and fast paced as per recommendations of the Shanta Kumar Committee.
• 100 lakh ton silo storage capacity must be created in the country. For this, RITES has been assigned the task of changing the silo model and they will give their recommendations in 90 days to FCI.
• At present, there are 3 types of labourers in FCI namely Departmental, Daily Payment System (DPS) and No work no pay workers along with contractual labour. Government of India is deliberating to finish the 3 different arrangements and bring all workers of FCI under a single, uniform system which will bring stability of tenure and secured wages for all.
• To improve the usage of Information Technology in FCI, a Human Resource Management System (HRMS) must be implemented.

Conclusion:

PDS has helped bring about the socio-economic justice by helping alleviate hunger, malnutrition, anaemia among poorest of the poor, BPL citizens, women and children. The use of ICT to reduce the touch-points will further increase the efficiency of PDS.