Sambhav-2025

Day 83: The Public Distribution System (PDS) has helped in ensuring food security, yet it faces challenges of leakage and inefficiency. Suggest reforms to improve its effectiveness. (250 Words)

07 Mar 2025 | GS Paper 3 | Economy

Approach / Explaination / Answer

Approach

  • In the introduction, briefly explain PDS, its role in ensuring food security
  • Discuss the significance, challenges and reform for the PDS.
  • Conclude suitably.

Introduction

The Public Distribution System (PDS) plays a crucial role in ensuring food security for two-thirds of India's population under the National Food Security Act (NFSA), 2013. However, despite its importance, 28% of allocated food never reaches beneficiaries, leading to massive losses and inefficiencies. Addressing these challenges requires structural reforms to enhance transparency, efficiency, and nutritional security.

Body

Significance of PDS in India:

  • Food Security & Poverty Alleviation: Supports 129 million Indians living in extreme poverty by providing subsidized food.
  • Price Stabilization & Market Regulation: Helps control inflation, as seen in 2022-23 when FCI released 34.82 lakh tonnes of wheat to stabilize market prices.
  • Support to Farmers: Provides assured markets and MSP; in 2023-24, 52.54 million tonnes of rice were procured.
  • Nutritional Security & Health: Some states (e.g., Tamil Nadu with fortified rice) have expanded PDS to include pulses and oils.

Challenges Facing PDS:

  • Leakages and Diversion:
    • 28% of allocated food grains are lost due to illegal market diversion despite PoS machine usage in 90% of Fair Price Shops (FPSs).
    • States like Arunachal Pradesh, Nagaland, and Gujarat report the highest leakages.
  • Ghost Beneficiaries and Identity Fraud:
    • 47 million bogus ration cards canceled (2013-2021) despite Aadhaar integration.
    • Odisha alone had 2 lakh ghost beneficiaries (RTI, 2021).
  • Quality Degradation and Storage Losses:
    • 74 million tonnes of food are lost annually, 10% of India's total food production, due to poor storage.
  • Targeting Errors and Exclusion-Inclusion Issues:
    • 12.9% of Indians live in extreme poverty, but PDS covers about 57% of the population under PMGKAY, leading to under-coverage of the needy.
  • Corruption in Fair Price Shops:
    • Irregularities in FPSs include under-weighing, overcharging, and fraud, with 19,410 actions taken between 2018-2020 under TPDS (Control) Order, 2015.
  • Rising Fiscal Burden:
    • The food subsidy bill for 2024-25 is ₹2,05,250 crore, 7% higher than the previous year, affecting government finances.
  • Nutritional Inadequacy:
    • PDS primarily provides wheat and rice, neglecting protein-rich foods.
    • Odisha's Millet Mission (OMM) has successfully integrated nutrient-rich millets into PDS, serving as a model.

Reforms for a More Effective PDS:

  • End-to-End Digitalization & Real-Time Monitoring:
    • Implement blockchain tracking and IoT sensors to monitor food grain movement, ensuring transparency and reducing leakages.
    • Use GPS-enabled transport tracking for government food supply vehicles to prevent unauthorized diversions.
    • Mandate AI-based fraud detection systems at storage and distribution points to curb corruption and pilferage.
  • Smart FPS (Fair Price Shop) Transformation:
    • Upgrade FPSs with biometric authentication, digital weighing scales, and electronic PoS machines to prevent fraud and ensure fair distribution.
    • Enable UPI and Aadhaar-linked payments for cashless transactions and enhanced transparency.
    • Introduce QR code-based food quality certification to help consumers verify authenticity through mobile apps.
  • Strengthening One Nation One Ration Card (ONORC):
    • Ensure seamless ration portability for migrant workers across states, preventing food insecurity.
    • Develop a centralized real-time beneficiary database to eliminate duplication and fraud.
    • Implement temporary ration registration for seasonal migrants to maintain uninterrupted access to subsidized food.
  • Storage Infrastructure Modernization:
    • Upgrade traditional godowns to temperature-controlled silos to reduce wastage and improve food grain quality.
    • Establish AI-driven grain quality monitoring to detect spoilage, pests, and contamination early.
    • Encourage public-private partnerships (PPPs) to develop modern storage infrastructure and improve supply chain efficiency.
  • Expanding Nutritional Security & Diversification:
    • Expand PDS to include pulses, fortified rice, edible oils, and millets to address malnutrition and hidden hunger.
    • Implement E-Rupee-based food vouchers for vulnerable groups like pregnant women and children to ensure targeted nutrition.
    • Promote state-led initiatives like Odisha’s Millet Mission to enhance dietary diversity in PDS.
  • Enhancing Crisis Response & Emergency Distribution:
    • Deploy mobile PDS units with digital ration distribution to serve disaster-affected areas.
    • Establish emergency food stockpiles in disaster-prone regions for rapid response.
    • Introduce flexible ration quotas to increase allocations during crises like droughts or pandemics.

Conclusion

The Public Distribution System (PDS) plays a crucial role in ensuring food security, but addressing leakages, inefficiencies, and nutritional gaps is essential for its long-term effectiveness. Leveraging digital technologies, modernizing storage, diversifying food baskets, and strengthening governance will help create a transparent, efficient, and inclusive food security system for India.