Reforming the PDS in India

• 22 Sep 2025

For Prelims: World Bank, Public Distribution System, Food Corporation of India , Poshan Abhiyaan

For Mains: Food Security in India: Public Distribution System (PDS) and reforms, Nutrition and Hidden Hunger

Source:TH

Why in News?

A recent study by Crisil using a ‘thali index’ shows that up to 50% of rural and 20% of urban Indians cannot afford two balanced meals a day, revealing widespread food deprivation.This contrasts with the World Bank’s Poverty and Equity Brief, based on the 2024 Household Consumption Expenditure Survey, which claims extreme poverty fell from 16.2% in 2011-12 to 2.3% in 2022-23.

Even with Public Distribution System (PDS) support, food deprivation remained 40% in rural and 10% in urban areas, revealing deeper food insecurity than income-based poverty estimates.

Thali Index

• Unlike conventional poverty measures based only on calories or income. The “thali index” approach measures food deprivation by assessing whether households can afford a basic, balanced meal (the thali, which includes rice, dal, roti, vegetables, curd, and salad). 
• It reflects both nutrition and satisfaction, not just calories. Reveals hidden deprivation, as many households cannot afford even two thalis a day despite low official poverty levels.
• This approach highlights the need to restructure the PDS to promote equity in primary food consumption.

Why is the Need to Restructure the PDS to Promote Equity in Primary Food Consumption?

• Limitations of Current PDS: The PDS has succeeded in equalising cereal consumption across income groups. However, the PDS mainly provides rice and wheat, which are rich in calories but low in proteins and other nutrients. This helps with hunger, but not with balanced nutrition.
• Pulse Consumption Gap: A healthy diet requires proteins, vitamins, and minerals, not just calories. Pulses, often the only protein source for the poor, remain unaffordable without subsidy.
• As a result, the poorest 5% of rural households consume only half as many pulses as the richest 5%, highlighting a serious nutritional gap driven by cost barriers.
• Subsidy Misdirection: In rural India, individuals in the top 10% consumption bracket receive up to 88% of the subsidy that the poorest 5% receive.
• This group spends three times more on food than the poorest, yet continues to benefit from PDS subsidies, implying leakage and misallocation.
• In urban areas, although the system is more progressive, 80% still receive PDS subsidies, even if they exceed the "two-thali" consumption norm.
• Fiscal Burden and Resource Misuse: In January 2024, the central government extended free food grain supply (under National Food Security Act (NFSA) 2013) to 80 crore people.
• However, Household Consumption Expenditure Survey (HCES) 2023-24 data shows many of these households already consume enough cereals. Such large-scale entitlement does not reflect actual need and wastes public funds.
• Over-allocation also increases procurement, storage, and distribution costs for the Food Corporation of India (FCI).

Poverty Committees in India Based on Consumption

• Working Group (1962): Quantified poverty line based on minimum food and non-food needs. Separate rural (Rs 20) and urban (Rs 25) per capita per month at 1960-61 prices.
• VM Dandekar & N. Rath (1971): Derived poverty line based on expenditure required to meet 2,250 kcal/day per capita.
• Y.K. Alagh (1979): The poverty line was based on the per capita consumption required to meet basic calorie needs: 2,400 kcal/day in rural areas and 2,100 kcal/day in urban areas, corresponding to Rs 49.09 per month for rural and Rs 56.64 per month for urban households (1973-74 prices).
• Lakdawala Expert Group (1993): Retained Alagh Committee poverty lines at national level and introduced state-specific lines to reflect price differences.
• Tendulkar Expert Group (2009): Used a single all-India urban poverty line basket to derive state-level rural and urban poverty, replacing the earlier practice of separate rural and urban baskets. 
  • It recommended shifting from calorie-based to target nutritional outcomes and recommended a uniform all-India poverty line for rural and urban areas.
• Rangarajan Committee (2014): Reintroduced separate rural and urban poverty lines with consumption baskets including food and non-food items.
  • The poverty line is estimated as Monthly Per Capita Expenditure of Rs. 1407 in urban areas and Rs. 972 in rural areas. The government did not officially adopt the report.

What Challenges Exist in Implementing Nutrition-sensitive PDS?

• Accurate Targeting of Beneficiaries: Identifying households that genuinely consume below the “two thalis a day” norm is difficult. 
  • There is a high risk of exclusion errors (poor families left out) and inclusion errors (better-off households still receiving benefits).
• Political Sensitivity in Reducing Cereal Entitlements: Many households, including middle-class and better-off groups, currently benefit from subsidised rice and wheat.
  • Cutting or eliminating their entitlements may trigger political resistance and public backlash.
• Procurement and Distribution of Pulses: Unlike rice and wheat, pulses are produced in smaller quantities, have greater price volatility, and require better storage facilities. 
  • Scaling up their procurement and distribution through PDS would be logistically challenging.
• Financial Sustainability: Expanding subsidies for pulses while continuing to support cereals could place a heavy burden on the food subsidy bill. 
  • Without restructuring PDS, it may not be fiscally sustainable for the government.
  • Subsidised food items often get diverted to open markets. Expanding the basket to include costlier items like pulses increases the incentive for black marketing and corruption.
• Administrative and Monitoring Capacity: Implementing a nutrition-sensitive PDS needs reliable data systems, digital tracking, and strong oversight. 
  • Weak monitoring can undermine efficiency and prevent benefits from reaching the truly needy.

How can the PDS be Reformed to Ensure Equitable & Nutritious Food Access?

• Define a Nutrition-Based Food Norm: Establish a "minimum balanced diet" standard (e.g., two thalis/day) including cereals, pulses, vegetables, and dairy.
  • Make it region-specific to reflect local dietary patterns and costs.
  • As recommended by the Tendulkar Committee (2009), poverty estimation should move beyond calorie norms to a broader consumption basket, including food, health, and education.
• Target Subsidies Based on Need: Update and use latest HCES data to identify households below the nutrition norm. 
  • Provide full PDS support to the most deprived and reduce or eliminate subsidies for those above the norm.
• Expand Pulse Inclusion in PDS: Increase the distribution of key pulses (tur, moong, chana) in PDS to address protein deficiency. Prioritise supply for low-income households with low protein intake and link procurement with Minimum Support Price and buffer stocking mechanisms.
• Reduce Excess Cereal Allocation: Trim cereal quotas where consumption has already met desired levels. Use savings to diversify the food basket and improve nutritional outcomes.
• Pilot and Scale Gradually: Implement state-wise pilot programs, monitor impacts on nutrition, fiscal costs, and supply chains before national rollout.
  • Align with Poshan Abhiyaan(National Nutrition Mission (NNM), Integrated Child Development Scheme, and Mid-Day Meal schemes to maximise impact.
• Leverage Technology for Better Targeting: Use digital ration cards, Aadhaar linking, and real-time data to improve transparency and reduce leakages.
  • Promote nutrition literacy among beneficiaries to increase uptake of pulses and diversified diets.

Conclusion

A reformed, nutrition-focused PDS is essential to bridge India’s hidden hunger gap. Strategic targeting, fiscal prudence, and dietary diversity must guide future interventions. Equity in food access is not just about distribution, it's about delivering dignity through nutrition.

Drishti Mains Question:

Q. Despite near-universal calorie sufficiency, India faces serious nutritional inequality. Critically examine the need to reform the Public Distribution System (PDS) and propose a brief roadmap for implementation.

UPSC Civil Services Examination, Previous Year Questions (PYQs)

Prelims

Q. Which of the following are the objectives of ‘National Nutrition Mission’? (2017)

1. To create awareness relating to malnutrition among pregnant women and lactating mothers.
2. To reduce the incidence of anaemia among young children, adolescent girls and women.
3. To promote the consumption of millets, coarse cereals and unpolished rice.
4. To promote the consumption of poultry eggs.

Select the correct answer using the code given below: 

(a) 1 and 2 only  

(b) 1, 2 and 3 only 

(c) 1, 2 and 4 only

(d) 3 and 4 only 

 Ans: (a)

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Q. With reference to the provisions made under the National Food Security Act, 2013, consider the following statements: (2018)

1. The families coming under the category of ‘below poverty line (BPL)’ only are eligible to receive subsidised food grains.  
2. The eldest woman in a household, of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.  
3. Pregnant women and lactating mothers are entitled to a ‘take-home ration’ of 1600 calories per day during pregnancy and for six months thereafter.  

Which of the statements given above is/are correct?  

(a) 1 and 2 only  

(b) 2 only  

(c) 1 and 3 only   

(d) 3 only  

Ans: (b) 

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Mains 

Q: Food Security Bill is expected to eliminate hunger and malnutrition in India. Critically discuss various apprehensions in its effective implementation along with the concerns it has generated in WTO. (2013)