Understanding India's Public Distribution System
Understanding India's Public Distribution System
com/definition/Public-
distribution-system
Wheat, rice, kerosene, sugar, etc. are a few major commodities distributed by the
public distribution system.
Description: Food Corporation of India, a government entity, manages the
public distribution system.
The system is often blamed for its inefficiency and rural-urban bias. It has
not been able to fulfill the objective for which it was formed. Moreover, it
has frequently been criticized for instances of corruption and black
marketing.
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distribution-system
Protecting the poor from a rise in food prices remains a global policy
priority. Indian households spend 45% of their income on food and
many poor households rely on government subsidized grains for core
cereal intake. Thus, programs to mitigate losses from food price shocks
are an important part of India’s social protection system.
India’s food subsidy program continues to be one of the largest in the
world. The Public Distribution System (PDS) provides nearly 800 million
people with subsidized grain through a network of over half a million fair
price shops. In 2017, the government spent some $16 billion dollars on
the program, or almost 1 percent of GDP. Viewed from the perspective
of public administration and state capability, what can the history of the
PDS teach us about social protection and subsidy reform in India?
The numbers tell the story. In 2004-05, just 22.4% of Indian households
reported buying food grains from fair price shops. This doubled to
44.5% in 2011-12, the highest since 1997, when the targeted PDS was
introduced. Following the implementation of the National Food Security
Act’s in 2016, coverage has further expanded. Administrative data for
2016, shows that 74% of Indian households possess a ration card; in
2012, nearly six out of ten poor households purchased grains from the
PDS. All told, these improvements protected poor households from food
price increases, and alleviated poverty during times of drought and high
food inflation. While all-India decline in leakage has been moderate –
going from - 58% in 2004/05 to 43% in 2012—the reductions in
leakages were particularly strong in the low-income states with
historically weak administrative capabilities of Bihar, Odisha, Jharkhand
and Chhattisgarh. Micro-surveys in select low income states conducted
in 2016 and 2017 found that citizens received nearly 90% of the
subsidized grains to which they were entitled.
More fundamentally, the choice approach may kick the can down the
line and not fully address the underlying tension in the PDS – that is, its
dual objectives of protecting families from price rise and stabilizing
farmer incomes. Any reform on the social protection side should come
in tandem with carefully crafted reforms on the agricultural and food
price risk management sides. This is not a call for inaction, but for
concerted cross-sectoral policy. After all the PDS is not a program in
vacuum, but part of a larger system-wide set of interventions.
There are some articles on economic and political weekly which would in fact be good
but I have no access to it
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The magnitude of the issues with the technologies used by the Aadhaar
project is hard to discern, as the government is not easily forthcoming
with its data, and primary data is limited. 2 This note relies on case
studies, secondary data and primary data, covering a number of welfare
programmes and states, ranging from those known to have reasonable
administrative capacity to those with weak administration.
There are two overlapping issues with the technology. One is the
soundness of the technology and the other is its implementation. Often
it is not possible to disentangle the two neatly. The following sections
list these problems along with examples of practical difficulties people
have faced with Aadhaar.
Getting an Aadhaar Number
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4.3. Barriers and Enablers to the Efficient Working of the PDS
A number of barriers and enablers influencing the efficient working of the PDS were
investigated across the studies included in this review. One key barrier to a more efficient
system was the presence of illegal (or ghost) cards, with the finding that some households
hold multiple cards [51,58]. The illegal cards were identified in several states, with
Kumar [58] suggesting that there were approximately 230 million excess cards across the
country in 2006.
Despite a number of significant, system-wide changes over recent years, high levels of
corruption and leakage continue to plague the PDS [48,53,54]. Part of this leakage occurs
at the level of the fair price shops, where Gupta and Singh [48] reported that some store
owners exchanged the high quality goods provided from the government for distribution
through the PDS with lesser quality goods from the general stores. Both Khera [54] and
Dhanaraj and Gade [53] reported very high rates of corruption within the system, in some
states this was up to 100% leakage or ‘diversion’ from the supply chain. Transparency,
better governance, technology and the introduction of computerisation, along with use of
global positioning system and distribution via doorstep delivery have been suggested as
potential ways to address these issues [45,56].
Targeting errors, specifically the problems associated with targeting BPL and APL
households were identified as areas where efficiencies could be made [45,52,58]. These
studies suggest that while there was some effort to target the BPL households, the
targeting has had a marginal effect on poor households [52]. There is also a suggestion
from Kumar [58] that non-poor households have been included in the PDS to the
detriment of the system. This is consistent with the work of Nair [61], who suggest that
better targeting and the removal of APL households, that is, a removal of universal nature
of the system, would have significant positive impacts on the operation and effects of the
PDS.
5.1.1. Targeting
In 1997, the PDS was restructured, shifting from a universal system, where all Indians, in
principle, were eligible to receive a food subsidy, to a system that targeted those most in
need. This targeting had two main purposes: (1) to bring down the ever increasing costs
of the system; and (2) to provide more food to those in need [73]. Under this change BPL
households continued to receive subsidised foods, while subsidies for APL households
were phased out [54]. BPL households were identified via household income, compared
against an absolute income line. However, households with any assets (such as
televisions, fans, two or four wheeled vehicles, or land) were classified as APL under this
change, and despite owning such goods, many of these APL households were food
insecure, and with the removal of rations were unable to purchase sufficient goods
[21,45,74]. The problem of targeting is compounded by the lack of good quality regular
data; no regular official estimates of the actual income of households are conducted, with
many households BPL not classified as such, and some BPL households not holding
ration cards [73]. These problems with targeting limit the usefulness of the PDS in acting
as an effective food safety network [58,75], and are further exacerbated by the existence
of illegal cards [76].
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In effort to address the problem, until recently, the policy debates on this programme
have focused on the related issues of coverage, targeting, errors of exclusion and
inclusion, storage, transport, distribution, diversion, price and quality of the food grains.
A growing number of studies have identified that the success of the PDS in meeting its
stated objectives depends on the competency of the state governments to identify the
genuinely poor families or all needy population, removing ghost BPL/AAY cards, putting
in place an effective and efficient delivery system, procurement of food grains and timely
release of food stocks (Drèze, 2003, 2010b, Government of India, 2005a; Dreze and
Khera, 2010a; Jha and Ramaswami, 2010; Khera, 2011). Use of Unique Identification
(UID) number to minimize the misalliances and duplications has taken the debate of PDS
boo-boos to further level. The Reasons of not having and using Ration Card Table 9 and
10 display the reasons for not having a ration card and not using ration cards by states
and socioeconomic groups, respectively. Among the reasons for not having ration card,
‘bureaucratic reasons’ are the dominant reason for majority of the states. However, this
problem is more pervasive in poor states: Bihar (87%), Orissa (69%), and newly formed
states: Chhattisgarh (66%), Jharkhand (64%), and Uttarakhand (46%) compared to other
states (less than 40%). However, other reasons (unspecified reason) also equally
dominant reason for states like Andhra Pradesh (75%), Jammu and Kashmir (64%),
Tamil Nadu (58%), Rajasthan (45%) and Delhi (44%). Moreover, change in residence
(‘moved’) and ‘not needed’ also contributes reasonably for not having a ration card. The
assessment of reasons for not having a ration card by socioeconomic groups again revels
‘bureaucratic reasons’ are the major reason behind not having a ration card, more
particularly in disadvantageous socioeconomic groups. Households belong to ST caste
and poorest and poorer economic status are facing more bureaucratic problem for getting
a ration card. Substantial proportion of richest households and other religions (Christians,
Sikhs, Jains ect.) are indicating that they do not need ration card. Shift in the residence is
also a major reason for not having ration card for other religion, upper caste and
households with rich wealth status. Reasonable proportions of households have lost their
ration cards. Among the specified reasons for not using the ration
card, ‘irregular supply’ is the major reason, followed by ‘no
time’, ‘poor quality’ and ‘financial reasons’. However, the state level
results evident that reasons for not using ration card varies substantially. Except Punjab,
states with larger proportion of tribal population indicate that ‘irregular supply’ has the
major reason for not using ration cards. However, the picture is much clear in table 12
which is showing the reasons for not using the ration card by socioeconomic groups,
where, irregular supply is the major reason for all the disadvantageous socioeconomic
groups.
As per The State of Food Security and Nutrition in the World 2018 report, almost
195.9 million people in the country (comprising 14.8% of India’s population) are
undernourished. What’s worse, malnourishment among women and girls in the
reproductive age triggers a cycle of malnutrition going down generations via the
reproduction of unhealthy babies. Moreover, malnourishment among children
leads to a higher risk of death from common childhood ailments such as
pneumonia, malaria and diarrhoea. Furthermore, by restricting physical growth, it
causes mental retardation, blindness, spinal and brain birth defects.
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the issue of Jharkhand and corruption was dealt with in this article
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MIDDAY meal
MDM guidelines stipulate the meals should meet certain dietary stipulations. Children in Class I-V should get
450 calorie per day with 12 gm protein while those in the upper primary should get 700 calories including 20
gm protein. Andhra Pradesh, Telangana, Tamil Nadu, Kerala, Karnataka and Puducherry have even
extended the scheme to Class IX and X. It now covers 11 crore students across 11.34 lakh schools.
However, shoddy implementation has marred the ambitious programme. However, shoddy implementation
has marred the ambitious programme. There have been reports that children were fed substandard or
adulterated food. In September, a video showed children in a school in Mirzapur being served chapati and
salt. In November, there were reports from Sonbhadra that one litre of milk was allegedly diluted with a
bucket of water and fed to 81 children. Though the scheme might have benefitted children and reduced the
dropout rate, a glaring issue has been the lack of monit ..
ICDs - [Link]
India - Integrated Child Development Services (ICDS) The average Indian child has a
poor start to life. Both infant and under-five mortality rates for Indian children – at 67
and 93 respectively – are higher than the developing country average. One in four
newborns is underweight. Only about one in three is exclusively breastfed for the first six
months. Nearly one in two children under five years of age suffer from moderate or
severe malnutrition. One in three children does not get a full course of DPT (diphtheria,
pertussis and tetanus immunization), and only one in three has the opportunity to be in an
early learning programme. Just about one in five is protected against vitamin A
deficiency. Their parents and caregivers experience grave disadvantages too. Forty-four
per cent of India’s people live on less than $1 a day. Less than 30 per cent have access to
adequate sanitation facilities. Skilled attendants handle fewer than half of all deliveries, a
major factor in the country’s high maternal mortality ratio of 540 deaths per 100,000 live
births. Less than half the country’s households consume iodized salt. Pervasive
discrimination against girls and women is reflected in a range of adverse indicators,
including nutritional and educational outcomes, and the declining ratio of girls to boys,
particularly in the youngest age group. Against this backdrop, the Government has
supported a monumental effort to improve the life chances of children. Integrated Child
Development Services (ICDS) in India is the world’s largest integrated early childhood
programme, with over 40,000 centres nationwide. Since its inception in 1975, the
programme has matured and expanded, despite difficulties in adapting to the vastly
different local circumstances found on the Indian subcontinent. UNICEF helped launch
the ICDS programme and continues to provide financial and technical assistance along
with the World Bank. The programme today covers over 4.8 million expectant and
nursing mothers and over 23 million children under the age of six. Of these children,
more than half participate in early learning activities. The purpose of ICDS is to improve
the health, nutrition and development of children. The programme offers health, nutrition
and hygiene education to mothers, non-formal preschool education to children aged three
to six, supplementary feeding for all children and pregnant and nursing mothers, growth
monitoring and promotion, and links to primary healthcare services such as immunization
and vitamin A supplements. These services are delivered in an integrated manner at the
anganwadi, or childcare centre. Each centre is run by an anganwadi worker and one
helper, who undergo three months of institutional training and four months of
community-based training. The cost of the ICDS programme averages $10-$22 per child
a year. · Evaluation studies have found that, despite some unevenness in the quality of
services, the ICDS programme has had a positive impact on the survival, growth, and
development of young children. For example, a study conducted in rural areas of three
southern states (Tamil Nadu, Andhra Pradesh and Karnataka) found that the programme
had a significant impact on the psycho-social development of children, for both boys and
girls. The study also showed that undernourished ICDS beneficiaries attained higher
developmental scores than well-nourished children who were not enrolled in the
programme. · A national study conducted in 1992 by the National Institute of Public
Cooperation and Child Development confirmed the positive impact of ICDS. Where the
programme was operating, there were lower percentages of low-birth-weight babies,
lower infant mortality rates, higher immunization coverage, higher utilization rates for
health services, and better child nutrition. The percentage of severely malnourished
children declined, the positive effects of preschool were evident, and a larger percentage
of mothers were getting their children medically examined. · Changes in the programme
are improving its impact. Greater emphasis is being placed on children under three years
of age, links with existing health services are being strengthened, efforts in sanitation are
being supported, and community participation is being enhanced. These improvements
are consistent with the integrated approach to early childhood that UNICEF advocates
and that has been shown to yield results. · Over the last two and a half decades, ICDS has
demonstrated its effectiveness. Consequently, the Government of India has renewed its
commitment to making the programme universally available in order to achieve equality
of opportunity for all Indian children.
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The challenge
Two key problems relating to children in India are the large numbers of children out of
school and the extent of undernourishment. In 2004, around 15 percent of children in the
6-14 age group did not attend school. According to the third national family health
survey, carried out in 2006, 46 per cent of India’s children under 3 years of age were
underweight (compared to 8 percent in China), and India was home to 57 million - or
more than a third - of the world's 146 million undernourished children. Nutritional
anaemia, too, was widespread.
The figures have serious implications for personal development and the productive
potential of the nation and for Indian children’s basic human rights, such as access to
food and education. The policy challenge, in this context, was to address both the
educational and nutritional needs of school-age children.
The initiative
Successive federal and state governments have taken various measures to increase school
attendance, with some degree of success. One of the strategies has been the midday meals
in schools initiative.
The objectives of the initiative include:
Providing midday meals in Indian schools has a long history, going back to 1923 in
Madras. By the mid-1980s, three states had a universal cooked midday meal programme
for primary schoolchildren. By 1991, nine more states had followed suit.
90 percent of teachers and cooks said the meal was being regularly provided.
96 percent of parents wanted the scheme to continue.
63 percent of parents and 74 percent of teachers felt that the meal had helped
improve the children’s learning abilities.
There had been a 15 percent increase in overall enrolment.
The scheme played an important role in reducing dropout rates, especially among
girls.
The survey concluded that the MDMS scheme increased social equality by bringing
children from different social groups together.
Political Commitment Strong
The political commitment to MDMS has been strong from the very beginning. When the
central government launched the scheme for the whole nation, it provided full support to
the states through the free supply of the 100 grams of food grain along with subsidies for
transporting it from the nearest Food Corporation of India distribution point. This was a
huge fiscal commitment on part of the central government which definitely stems from
strong political resolution.
The state government has had to bear the costs of infrastructure and the actual cooking.
Policy
Clear Objectives Good
The objectives of the scheme were clear from the outset. They have remained consistent,
as is evident from amendments and revisions carried out by the governments to make
MDMS more feasible and widespread.
Evidence Good
MDMS was inspired by a number of similar schemes:
There are risks that had to be taken into account, as is evident from the tragic story of the
state of Bihar’s own midday meal scheme, which caused the deaths of 22 children. [1]
Feasibility Strong
Feasibility, in terms of money and human resources, was properly evaluated by the
government when it launched the scheme, estimating the requirement for each child of
food grains, rice, pulses, oil. The states implementing the policy were given
recommendations for sourcing finance. The implementing bodies were involved from the
start, e.g., NGOs and charitable trusts.
Action
Management Strong
There are formal monitoring committees, from national to school level, to ensure the
progress of the scheme. At national level there are two committees that hold quarterly
meeting to discuss the progress of MDMS. At state level, each state has an MDMS
steering and monitoring committee to mirror the national level approach.
Measurement Strong
The outcomes of MDMS are measurable: the number of children getting hot cooked food,
national progress in levels of nutrition, and the numbers of children being enrolled in
schools.
Alignment Fair
In 2004, when the guidelines were revised after the nine years of MDMS, it became clear
that universal implementation had not been observed. In six Indian states the scheme had
not even started and, in many states, the quality of food was not meeting the required
standards. There were also several schools that were without such midday meals in
districts where the scheme has been formally launched.
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Launched in 1995, India's Rs 13,000 crore Mid-Day Meal Scheme
(MDM) seeks to provide daily meals to 10 crore children in almost
12 lakh schools in classes 1 to 8 across government and
government-aided schools. This serves two functions - boosting
school attendance and participation by giving children and
families an incentive to go to school, and also provide nutrition to
India's next generation. With dedicated nutrition goals (450 to
700 calories, and 12 to 20 grammes of protein respectively for
primary and upper primary school children), the program has the
potential to end chronic malnutrition and starvation. However,
the program has many issues which the government must
immediately address.
Hygiene issues
As early as 2003, there have been multiple incidents of
unhygienic mid-day meals. These haven't been random one-off
episodes but showed how negligence in mid-day meal
preparation is rampant. Year-on-year, dead rats, worms, lizards
and insects have been spotted in mid-day meals served at
schools across India. There surprisingly has not been any
condemnation of the school facilities handling food, or of
agencies supplying food or ingredients. Recently, the CAG found
that schools in Punjab were noted to have no water testing, no
use of gloves, and violation of prescribed menus. Children were
made to wash utensils, despite the school having hired staff to
do so. In 2013, 23 students died and dozens fell dangerously ill
after eating a mid-day meal in a Bihar village school.
Fortification
85% of Indian children between the ages of 7 to 12 have high
rates of micronutrients deficiencies (in iron, folic acid, Vitamin
A). These can impair cognitive development, impair
concentration, cause school absenteeism and even illness. As
successful pilot projects in Odisha have shown, staple essentials
of Mid-Day meals like rice and wheat like can fortified with
micronutrients. Micronutrient premixes can be added to cooked
meals. These have shown success in reducing anaemia.
However, fortification has only made its debut in some states
like Karnataka instead of a pan-India rollout.
Save the Children’s role to battle malnutrition:
Support by those who give donation, Save the Children has
undertaken many programs to fight malnutrition across India.
i. Malnutrition Treatment Centre in Tonk to addresses high rates
of Severe Acute Malnutrition (SAM)
ii. Nutrition for Babies campaign which provides nutrition rehab
for malnourished infants and resources for mothers, nurses,
doctors, and families.
iii. Save the Children's ‘Poshan Vatikas’ which involve school
teachers and Aanganwadi 'Sevikas' to grow seasonal vegetables.
These are served to children in Mid-day Meals
iv. Slum outreach to raise awareness about malnutrition cause
among mothers, families and communities.
v. Stop Diarrhoea Initiative via increasing WASH (Water,
Sanitation and Hygiene), as well as building toilets.
The initiative is attempting to end open defecation – major
causes of diarrhoea, which triggers malnutrition.
Conclusion
Considering the high number of complaints, the government has
asked states and union territories to institute automated
monitoring systems for the midday meals supply, via apps, SMS,
email or IVRS. The work of civil society, government schemes
and concerned citizens has led to some tangible results. End-
2014 results showed a dramatic fall in underweight and stunted
children (from 48 % to 39 % (2005-6 and 2013-14). This translates
to 14.5 million fewer stunted children, a big achievement for
India, home to the shortest kids in the world. A nation-wide Rapid
Survey on Children (RSOC), showed a marked improvement in
malnutrition. NGOs like Save the Children have successfully
contributed to a measurable increase in access to nutrition, as
well as counselling of nutrition choices to India's less fortunate.
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NEW DELHI, India— India’s Mid Day Meal Scheme is one of the largest food assistance
programs in the world with a 2013-2014 budget of Rs 30 billion ($490 million.) It is managed by
the Ministry of Education, which claims the program is in place to “enhance enrollment, retention
and attendance and simultaneously improve nutritional levels among children.”
Any government program of this size—with the goal of assisting 120 million children every day—
no doubt suffers from organizational problems.
Referencing a study done by Yamini Aiyar for the Accountability Initiative, The Guardian states
that “too many layers of government were involved in the scheme, resulting in poor information,
coordination and monitoring.”
A few examples of poor monitoring and coordination show the issues this scheme encounters. A
little over one year ago in July, 2013, 23 children from the Indian state of Bihar died as a result of
unsafe food preparation. Outrage within the community led to protests as well as a government
probe into the incident.
Death due to improper food preparation is luckily an extreme, but more often children fall ill. The
most recent incident, reported by the Times of India, happened earlier this month when 50
students became sick at a government run school in Bihar. The cause was found to be a dead
lizard in their food.
This follows 12 students in the Buxar district becoming sick, 33 students in Vaishali and 25
students in Siwan, all during the month of July.
Other issues range from delayed payments, poor food quality, snakes and worms in the food,
cooks not receiving pay and food not being delivered or being wasted. There is even
embezzlement of the money by way of fake enrollments.
It is also a difficult challenge to deliver food to rural areas. Roads are not paved and the
infrastructure is lacking. Even if food makes it to these remote areas, kitchens to cook the food in
are not available within the schools.
A few NGOs have solicited local women’s groups to do the cooking with some success.
An interview with The Guardian showed that a school in the rural village of Karulihai in the Indian
state of Madhya Pradesh hasn’t received a food delivery since November 2013.
Mr. Sonpal, the schools only teacher, said that the meal is often the children’s only food for the
day. Many have stopped coming in to school.
There is some attempt to deal with the issues. This past July the government of the Indian state
Bangalore approved a state review mission to assess nutrition and many complaints related to
distribution of the food.
All the aforementioned problems are not meant to support the dissolution of the meal scheme, as
it has in fact helped many Indian children.
Research from the nonprofit Akshaya Patra, which works with the government to implement the
program, states that the meal scheme has led to “increased enrollment in schools, increased
attendance in schools, improved performance of students in class in terms of better attention
span and academic progress, [and]improved nutritional status of students.”
Another study by Farzana Afridi of Syracuse University and the Delhi School of Economics
claimed that the program has “reduced the daily protein deficiency of a primary-school student by
100 percent, the calorie deficiency by almost 30 percent and the daily iron deficiency by nearly 10
percent.”
The meal scheme is generally a successful one, but that should not blind policy makers from
potentially dangerous problems that have arisen in this large-scale meal program or let its
success blind them from the serious issue of malnutrition in India.
Recent data released by UNICEF and the Global Health Database shows that by 2015 around 33
percent of Indian children will be malnourished. India currently has more malnourished children
than sub-saharan Africa and half of all child deaths are a result of malnutrition.
Hopefully nonprofits and the government can work together to improve and perfect the Mid Day
Meal Scheme, as India’s children definitely need it and can benefit from its proper
implementation.
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That the mid-day meal has played an important role in enhancing enrolment,
retention and attendance in schools is doubtless. To that effect, it has surely done
its part in helping eradicate hunger. The incidents in Delhi and Mathura,
however, show that there is a lot that the government still needs to do to when it
comes to providing “safe, nutritious and sufficient food” to everybody or
of ending malnutrition by 2030 as promised by it under the Sustainable
Development Goals (SDGs).
After Supreme Court orders, nutrition has gradually become a part of what is
known as the Right to Food in India.
Distributing Mid Day Meal to Primary School students (Corporation School Children) in
Chennai, Tamil Nadu, India (Mid-day Meal Scheme).
There are many reasons for this. Says Prasad, “Providing nutrition through one
hot-cooked meal is not easy.” The only way she says to deliver the necessary
calories to students is by adding animal-based proteins.
But providing animal-based proteins within a limited budget is not easy either.
Recalling her experiences as part of a committee in Delhi that looked at the issue
of improving nutrition in MDMS she says, “They made an attempt. But then
finally the constraints remain the same- we want to do it within the same cost,
we don’t want to do this, don’t want to do that. Then it’s not that easy.” It was
only after allocating additional funds from its own coffers that the Delhi
government finally decided to incorporate eggs and bananas in its scheme.
For Biraj Patnaik, who was until recently the Principal Adviser to the
Commissioners of the Supreme Court, the lack of investment in the scheme is the
‘biggest issue’. As the budget allocation for the scheme hasn’t increased
proportionately to the rise in the cost of food, he estimates that the allocation has
been effectively slashed by 20-25 percent. “The issue is there is no money,” he
told YKA, “What will you monitor?”
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Public Distribution System
Public distribution system is a structure that is sponsored by a government and includes
chain of shops trusted with the work of distributing basic food and non-food commodities
to the disadvantaged group of the society at very low prices. The central and state
Ministry of Consumer Affairs, Food, and Public Distribution and managed cooperatively
with state governments in India, it distributes sponsored food and non-food stuffs to poor
established in several states across the nation. Food Corporation of India, a Government-
sense, the system includes all the agencies that are involved from
storage and distribution are Food Corporation of India . At the state level,
distribution system. The fair price shops are the last linkage in
market.
deals with the buffer stock operations (though FCI) and also controls the
external and internal trade of food grains. The Central government through
its procurement activity tries to even out the differences of surplus and
the food security system was initiated. Such effort was taken up for the first
time in 1939 under the British regime when the Second World War started.
The government thought of distributing the food grains to the poor of some
selected cities in which there was scarcity and also a situation where
In 1943, after the great Bengal Famine, this distribution system was
stress and disturbance like wars and deprivations gave rise to a form of
Such type of food security service existed in India for many years, in the
In the first period, the Public Distribution System was basically visualized
seen as a Fair price system in contrast with the private trade. Rice and
wheat occupied a very high share in the food grains distribution.
rural areas but it was not implemented. The operation of Public Distribution
proportion in the supplies for Public Distribution System during this period.
Prices Commission (APC) were established at that time which are now
selected food crops, especially rice and wheat. It delivered effective price
and market support for farmers and organised range of measures to create
employment and income for the rural poor in order to improve their level of
In the third period, there was an increase in the food grains production in
the country. The buffer stock accumulation too increased greatly. With this,
the initial stress on buffer stock maintenance and price stabilisation shifted
states that "in so far as food grains are concerned the basic objective is to
System needs and minimum reserve was maintained". In fifth five year
plan, programmes such as Food for work, Antyodaya were started with a
godowns. The imports slowly degenerated in this period and during the
year 1975, there was a net export of food grains though it was a small
confined to urban population and did not promise adequate food to the
rural poor in crisis period. During the late 1970's, and in the beginning of
Distribution System to rural areas and also introduced the target grouping
Pradesh. This was also because there was an obvious change in the food
situation particularly in the later years, during 80's and early 90's. Thus the
net availability of food grains which had increased from 74 million tons in
by the famine and drought in 1939, and has increased its range of work to
food grains and other civil supplies, pricing policies. The indispensable
essential goods through the fair price shops (ration shops or co-operatives
2. Rice, wheat and sugar are main food grains throughout the period.
The other important items are kerosene, edible oil which are distributed to
3. The working of the Public Distribution System did not hamper the
rationing areas but works along with it. Therefore, this could be observed
either purchase through Fair Price Shops or from the open market.
4. The required amounts of food grains and other items are acquired
and a buffer stock is maintained with meet the demand of shortage period.
The government feeds the Public Distribution System with supplies, bears
sections of society and also to stabilise their open market prices or at least
to stop an unwarranted rise in such prices under crisis period. The prices
charged are usually lower than open market prices and also lower than the
of administration.
accelerate the Project. All the ration shops across the country are to be
these activities. The draft food security Bill talks of local distribution of
grains. Some states have implemented advanced ways to make sure that
include:
monitoring
grains are met more economically. On local supply of food grains for
Child Development Services Scheme, states have the choice to source the
food-grain requirement from either the central pool or purchase it nearby.
Statistical data indicated that more than 10 states and union territories are
buying the grains locally. The draft National Food Security Bill also
introduction of the food Bill in the Lok Sabha on December 22, 2011, it was
Leveraging Aadhar
Aadhar card is one of the major element to modernize the public
distribution system. The Unique Identification number Aadhaar was
considered by the Indian government for residents of India to clearly and
exclusively verify their identity anywhere in the country. The mandate for
the UIDAI includes defining the usage of the number across critical
applications and services. The Public Distribution System is one
application, and the UIDAI has accordingly laid out the vital role Aadhaar
can play within the PDS. The recipients of public distribution system can
be enrolled into the Aadhaar system. The use of the Aadhaar number in
public distribution system will reduce duplicates, bogus and ghost
beneficiaries in PDS databases which will result in reducing wastage and
diversion in the system. An Aadhaar enabled system makes access to
public distribution system benefits portable across a State and also the
country. This would allow the PDS beneficiary due to portability of benefits
and choice of the PDS shop. The bargaining power will move from the
supplier to the recipient which will support empowerment and bring about
improved responsibility. Applying Aadhaar authentication at every
exchange point would enable governments to track the movement of food
entitlements across the public distribution system chain, and identify
blockages and diversions in real-time. In the case of centralized
procurement, such authentication would begin at the FCI point.
Figure: Adhar card authentication at every stage:
Strengthening of public distribution system not
1. To ensure that the lifting, and transport of the food grains to FPS
stage
2. To eradicate diversion and leakages of the food grains
3. To ensure that the right kind of ration cards are issued to the public
without delay
provide subsidised food and fuel to the poor through a network of ration
shops. Food grains such as rice and wheat that are provided under TPDS
are procured from farmers, allocated to states and delivered to the ration
UTs through more than 5 lakh Fair Price Shops across diverse operating
2000 for one crore poorest of the poor families. AAY anticipates providing
them food grains at a highly subsidized rate of Rs 2/ per kg for wheat and
Rs 3/ per kg for rice. The States/UTs are required to bear the distribution
and communication technology will assist this system. All States should
In India, the growth was fastest in Andhra Pradesh, 42 per cent and
Odhisa, 33 per cent. Even in States like Bihar and UP, the real farm
earnings went up by 19 and 20 per cent. This has augmented demand for
certain goods and services, which has translated into persistent high
response has been insufficient and along with weather induced shortages
in the food economy, have resulted in important challenges for inflation
production in the regions where land and productivity have lagged behind
reaching of the food grains to the actual recipients without leakages and
These efforts would make the schemes clear, help eradicate leakages and
dishonesty and authorize the beneficiaries to get products as per their right
and requirement.
with an intent to control the rising food subsidy bill borne by the
the Central and the State Governments. The Central Government, through
supervision of the functioning of Fair Price Shops (FPSs), rest with the
State Governments. Under the PDS, the commodities namely wheat, rice,
sugar and kerosene are being allocated to the States/UTs for distribution.
The PDS was initially established during the British regime in response to wartime scarcity in 1939, evolving further after the Bengal Famine of 1943 to prevent similar crises . These historical factors led to a system designed for emergency resource distribution, which is not fully adapted to current needs for consistent, equitable distribution across large and diverse populations. The initial urban focus has shifted to include rural areas but entrenched inefficiencies, a legacy of inconsistent implementation and governance, and vulnerability to corruption persist as significant challenges today .
The historical evolution of the PDS, from a World War II emergency rationing system to a nationwide food security program, reflects its ongoing challenges. Initially, it was a response to acute scarcity during war times and famines, mainly targeting urban localities . Over time, efforts to expand to rural areas were inconsistent, leading to regional disparities in access . With the rise in criticism over inefficiencies and corruption, these historical roots highlight problems, such as dependency on imported food grains and uneven distribution, exacerbating today's challenges in achieving equitable food security .
Corruption within the PDS has significantly impacted its effectiveness in providing intended benefits to BPL households. A high degree of leakage and diversion of food grains away from intended beneficiaries to the black market diminishes the quantity and quality of provisions reaching these households . Corruption at the level of fair price shops, where high-quality goods intended for distribution are often replaced with inferior products, undermines the objective of providing nutritional and economic support to the poorest . These corrupt practices frustrate efforts to alleviate poverty through food security initiatives.
Key features of India's PDS include the distribution of essential goods through a network of fair price shops (ration shops), offering essential commodities at subsidized rates. It maintains buffer stocks to stabilize market fluctuations in prices . The system is government-controlled, ensuring that it reconciles market and social welfare objectives by stabilizing prices for consumers while also supporting low-income families through targeted resource allocation . Additionally, the PDS integrates both local procurement and import strategies to ensure consistent availability of food grains .
Decentralization potentially improves the nutritional outcomes by allowing school feeding programs to source food locally, which ensures fresher and more nutrient-rich produce . It encourages investment in local community agriculture and gardens, fostering sustainable practices and self-reliance. Moreover, decentralization supports the inclusion of diverse, locally appreciated dietary options that meet cultural preferences and nutritional needs better than standardized menus .
Involving local farmers in school feeding programs contributes to improved food quality by ensuring a supply of fresh, seasonal produce that is typically more nutrient-dense compared to centrally procured, processed foods . It supports local economies by providing farmers with consistent demand and fair prices. Furthermore, this approach fosters sustainability by reducing transportation emissions and promoting local agricultural practices. Encouraging schools to establish gardens further enhances sustainability and provides students with educational opportunities in nutrition and agriculture .
Technological interventions such as computerisation, the use of GPS for tracking distribution, and the integration of Aadhaar for identity verification have been recommended to improve PDS efficiency . These measures aim to enhance transparency, reduce corruption, and ensure accurate targeting and allocation of resources. By addressing the logistical and monitoring challenges within the system, these technologies could significantly reduce the leakage and diversion that currently hampers effective service delivery .
The major barriers to the efficient operation of the PDS include the presence of illegal or ghost ration cards, significant levels of corruption at various levels of the distribution chain, and ineffective targeting of Below Poverty Line (BPL) households . The existence of approximately 230 million excess ration cards contributes to system inefficiencies and resource leakage . This inefficiency is exacerbated by the diversion of quality food grains meant for fair price shops being replaced with inferior goods at these outlets . As a result, these barriers have increased food insecurity among the population that the system aims to serve by ensuring equitable distribution and price controls .
Integration of mobile technology can enhance PDS by enabling real-time monitoring of distribution processes, facilitating direct communication between beneficiaries and authorities, and allowing for the dissemination of transparent data on entitlements and stock levels . Mobile applications could also provide platforms for reporting corruption or shortages, thus empowering beneficiaries to hold service providers accountable. The digitization of ration card details and transaction records could mitigate fraudulent activities and ensure the efficient allocation and tracking of resources .
Government control in the PDS ensures a focus on social welfare rather than profit, which is the primary differentiator from private distribution systems. This control allows for price stabilization of essential commodities through subsidization and the maintenance of buffer stocks, which can be strategically released during shortages . Furthermore, government oversight ensures targeted assistance to low-income groups, reducing the likelihood of market-driven inflation and ensuring equitable distribution of food resources .