Economy

Public Distribution System UPSC Notes

Public Distribution System is a mechanism devised by the government for the distribution of food grains to the needy. This system has been devised to ensure that the population of the country is assured of basic requirements of food items at an affordable price. It sells cereals like rice, wheat, and sugar through fair-price shops to poor people. It will play a very important role in maintaining food security throughout the country.

  • PDS supplies food grains at subsidized rates to the poor.
  • It operates through a network of fair-price shops.
  • Hence, this system tries to reduce hunger in poor homes. PDS stabilizes the market prices of food.
  • It is also an important feature of the welfare measures adopted by the government.

What is Public Distribution System?

PDS, simply put, is a government-supported subsidy-based food grain distribution program aimed at the poor and weaker sections of society. It enables the achievement of food security by making available the underlying essential food items at affordable and reasonable prices. PDS works through a network of shops, which are also known as “ration shops.” Grains like rice, wheat, and sugar are distributed to entitled households through such shops. It is highly important in the national food management strategy of India.

Public Distribution System in India

PDS came into being during the 1940s as a response to the scarcity of food in India. However, over the years, it took a different turn by being an important area of food security policies. It is the government that identifies the needy families, and every household is given a ration card. These cards would provide access to people with subsidized food grains from PDS shops. In India, the PDS targets households in rural and urban poor areas by ensuring food reaches every household. The system reaches out to the urban and rural populations, making it possible for food to be accessible to millions.

Objectives of Public Distribution System

The Objects of the Public Distribution System revolve around making sure that food security is provided to the underprivileged. Some of the main objectives of the PDS include:

Ensure Food Security

Public Distribution System, therefore, has to ensure that food security for the people is made available, obtaining the required quantities of food grains by the economically weaker sections at subsidized prices. It has to make food available at accessible and affordable prices so that hunger and malnutrition are prevented. Food inequality is addressed directly through this system, thereby ensuring appropriate nutrition for the vulnerable population.

Stabilize Food Prices

Smoothening of Food Prices in the Open Market: Stabilization of food prices in the open market is one of the major policies of the Public Distribution System. By selling food grains at fixed subsidized rates, it has been instrumental in arresting the general price rise in the economy and has thereby helped reduce inflation in the economy. This kind of stability protects the low-income households from volatile markets and ensures that basic items of food remain within reach of such households.

Preventing Hoarding and Black Marketing

PDS works earnestly to prevent hoarding and black marketing of food items basically used by the people. It prevents these illicit practices, which create artificial shortages of food grains and raise the prices of such food grains, by making available adequate quantity of food grains at fair-price shops. Thus, the distribution of food grains becomes equitable and transparent, thereby helping the whole populace in a better way.

Nourishment Needs

It subsidizes the nutritional needs of impoverished sections by way of food grains like rice, wheat, and sugar available at affordable costs. In turn, this support from the PDS would help ensure that the basic diet requirements of the poor, vulnerable family members are adequately met to prevent health problems emanating from malnutrition. It has played a very significant role in bringing improvement in public health outcomes.

Features of Public Distribution System

Some of the major features of the Public Distribution System are the wide network and reaching up to the targeted group. It operates through the fair-price shops, which are the distribution networks. Each shop represents a particular area, so that the remotest area also gets covered. 

Network of Fair-Price Shops

Public Distribution System operates through an elaborate network of fair-price shops, popularly referred to as ‘ration shops’. Such a network works out the availability of basic food grains, such as rice, wheat, and sugar, to economically weaker sections. These shops are spread in urban and rural areas, ensuring food supplies reach even the remotest areas.

Distribution of Food Grains at Subsidized Rates

Through the Public Distribution System in India, food grains are distributed at subsidized rates among the beneficiary households. PDS aims at providing poor families with rice, wheat, sugar, and other items available at economical prices. This is the subsidy that even people at the bare minimum economic level can contribute toward meeting their day-to-day nutrition requirements.

Ration Card-Based Eligibility

Some of the features of the Public Distribution System are its ration card-based distribution system. It identifies the families in accordance with their economic status and issues them with a ration card. These cards determine the quantity of and type of food grains they are to receive, which ensures that only eligible families benefit from the subsidy provided by the government.

Food Security and Price Stability

The contribution of PDS towards food security is immense, as it ensures price stabilization of food items in the market. By regulating food grain distribution through fair-price shops, PDS blocks off abrupt elevation of food items’ prices. This way, even on days when market fluctuations are at their height, the poor and downtrodden can have access to basic food items.

Targeting and Categorization

BPL or APL- the system classifies the households based on earning of the household. This targeted approach helps maximize benefits to the most vulnerable sections of society. The beneficiary classification by PDS represents an attempt towards addressing the various needs of different segments of the population and providing differential support.

Problems of Public Distribution System

While PDS is imperative to realize food security, it has operational problems. Corruption and grains diversion are major problems. Many times, grains that are to reach the poor do not reach them but land in the black market. Besides, the identification of eligible families in receipt of benefits under the system is also flawed; households that deserve to get covered under the system do not get included, and others who do not deserve to become beneficiaries gain by the system. These are operational issues which need to be met if PDS has to work more effectively.

  • Leakages and diversions of food grains:- The grain that is intended to reach the poor gets diverted into the black market, reducing the overall availability to the eligible household.
  • Identification and targeting Issues: Many a time, the error in identification for ration cards leaves out genuinely deserving families and extends undue benefits to the ineligible households, thereby giving rise to inequality in the process.
  • Corruption and Black Marketing: Intermediaries and shop owners sell foodgrains obtained at subsidised rates in the open market with the intention of earning higher prices, therefore leaving the poor without basic food security.
  • Poor storage and transportation facilities: Due to improper storage facility and poor transportation network, most of the food grain becomes rotten, rendering the distribution network ineffective.
  • Poor awareness and accessibility: A larger section of the population, belonging to the rural areas, remain uninformed about the advantages accruing from PDS, hence less accessible to the staple food grains.

Reform in Public Distribution System

To make the PDS work more effectively, the government has undertaken several reforms. Introduction of digital ration cards thereby helps track the amount of grain distributed. Online monitoring systems reduce corruption and bring about more transparency. The government implements direct benefit transfers under which cash support would be provided to eligible families. All these reforms aimed at making the Public Distribution System responsible and equitable. Future reforms need to target, improve leakage, and supply chains.

Impact of Public Distribution System

The Indian Public Distribution System has elicited positive influences on food security. It has reduced hunger and ensured access to essential food grains amongst the poor. It also stabilizes market prices, making food affordable for one and all. 

  • Reduces Hunger and Poverty: PDS provides subsidized food grains to low-income families, hence ensuring the availability of essential food items and reducing hunger across vulnerable sections.
  • Price Stabilization: It helps stabilize the prices of food items in the market, and they cannot shoot up all of a sudden. This makes them affordable for everybody, particularly the poor.
  • Supports Farmers: By purchasing crops at MSP, the PDS assures the farmers of regular income, hence strengthening the agricultural economy.
  • Narrowing Economic Disparities: Since it targets economically weaker sections, it helps narrow the gap between the haves and the have-nots, thereby reducing social inequality.

Conclusion

In a nutshell, India’s food security depends on the Public Distribution System. Though facing various challenges, this system has already contributed much to the poverty alleviation and nutritional support of low-income families. By focusing on reform and efficiency, PDS can continue to provide a lifeline to millions. Less corruption will definitely be ensured by transparency, enhancing its impact further. PDS remains one of the major tools in the fight against hunger and poverty in India.

Public Distribution System UPSC Notes
1. The Public Distribution System (PDS) aims to ensure food security by providing subsidized food grains to the vulnerable sections of society.
2. PDS supplies essential commodities such as wheat, rice, sugar, and kerosene through a network of fair price shops across India.
3. The Targeted Public Distribution System (TPDS) differentiates beneficiaries into categories to ensure the poorest receive higher subsidies.
4. PDS helps stabilize food prices and maintain buffer stocks, contributing to food availability during emergencies and inflation.
5. Various reforms, such as Aadhar linkage and digitization, aim to reduce leakages and increase the efficiency of the PDS.
6. The PDS faces challenges like corruption, inefficiency, diversion of supplies, and targeting errors, affecting its effectiveness.
7. States have introduced innovative reforms like doorstep delivery, smart ration cards, and real-time monitoring to improve PDS operations.
8. The PDS plays a critical role in supporting the government’s food security programs, especially during crises like pandemics and natural disasters.
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Pragya Rai

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