What is PDS (Public Distribution System)?
- Public Distribution System (PDS) is an Indian food security system.
- It distributes subsidized food and non-food items to India's poor.
- Major commodities distributed: wheat, rice, sugar, and kerosene
- A network of Public distribution shops (also known as Ration shops)
- Food Corporation of India, a Government owned corporation, procures and maintains the Public Distribution System.
- Under PDS scheme, each family below the poverty line is eligible for 35 kg of rice or wheat every month, while a household above the poverty line is entitled to 15 kg of food grain on a monthly basis through 5 million Fair Price Shops (FPS) across India.
Criticism:
- Food grains not enough to meet the consumption needs of the poor
- Inferior quality
- Criticised for its urban bias
- Failure to serve the poorer sections of the population effectively
- The targeted PDS is costly
- Gives rise to corruption
- The government spends Rs. 750 billion ($13.6 billion) per year, almost 1 percent of GDP, yet 21% remain undernourished.
Paradox: India has the largest stock of grain in the world besides China
The problem facing the country today is not one of shortage of food grains but of managing the surplus. Ironically, even as the godowns of the FCI are overflowing, stray cases of starvation deaths are still being reported. A civilized society in the 21st century cannot allow this to happen. Therefore, while there is need to produce adequate food grains domestically, supplementing with imports whenever required, it is also necessary to look at the food grain distribution network. The Public Distribution System (PDS) in the country facilitates the supply of food grains to the poor at a subsidized price. However, doubts have been raised about the efficacy and cost-effectiveness of the PDS, especially in the light of the growing food subsidy and food stocks. The PDS needs to be restructured and there is a need to explore the possibility of introducing innovative ideas such as smart cards, food credit/debit cards, food stamps and decentralized procurement, to eliminate hunger and make food available to the poor wherever they may be in cost-effective manner.
Challenges:
- Availability of Food
- Accessibility of Food
- Affordability of Food
There are two aspects to the paradox of overflowing godowns and vulnerable sections of society not consuming adequate food. One is the issue of not having enough purchasing power or income to buy food and the other is the access to food in terms of physical availability of food. In remote, inaccessible and backward regions both job opportunities and access to food may be constrained. In such situations, food-for-work and related schemes are necessary. These may need to be supplemented by more innovative schemes like grain banks. Community grain banks can be set up in such areas from where the needy can borrow grain in times of need and repay the grain once the crisis is over. Natural disasters such as earthquakes also create conditions in which the government must provide emergency assistance and the administration has to be alert to such situations. Finally, a minimal amount of social security must be provided to those who are old, sick or disabled and cannot take on work even if it is available. Special schemes must ensure that they do not go hungry.
Shift in consumer pattern:
The growth of aggregate demand for cereals in the country can be said to have been kept in check due to two factors — slowdown in the pace of population growth and shift in consumer preference towards non-cereals. While the changing demand patterns is one reason for the accumulation of surplus food grains, another factor is the tendency of successive governments to fix Minimum Support Prices (MSP) for paddy and wheat in excess of the levels prescribed by the Commission for Agricultural Costs and Prices (CACP). The higher MSP increased the profitability of these crops and motivated the farmers to divert their areas to these crops from coarse cereals, pulses and even oilseeds, as in the case of Punjab. This enabled the country to achieve higher output of food grains and achieve surpluses. However, the need to rethink this approach is overdue. There should be a marked incentive for growing pulses and oilseeds by increasing the MSP of these crops. The average shelf life of coarse grains is limited, making them unsuitable for long-term storage and distribution under PDS.
Andhra Pradesh Case Study:
Sources: The Hindu, Planning Commission of India (Report), Economic Times, Wiki (definitions)
