Public Distribution System in India: Objectives, Flaws in the Food Security System

The Public Distribution system refers to the management system of the food economy and the distribution of food grains at affordable rates through ration shops. The Public distribution system’s scheme provides staple food grains such as sugar and wheat to the Below Poverty line families through its network in the country. It is run by the Ministry of Consumer Affairs, Food and Public Distribution. The basic objective and expansion of PDS were to provide food to the weaker section of India at an affordable rate. The blog will discuss the Objectives and Expansion of the Public Distribution system playing a vital role in minimizing food insecurity in India. 

Objectives and Expansion of PDS

The Primary objective and expansion of PDS in India is to provide necessary consumer food items at subsidized and cheap prices, protecting the consumers from increasing prices of goods. It helps maintain the minimum nutritional status of the population of the country. Meanwhile, to run the Public distribution system, the country’s government tends to purchase a part of the marketable surplus with producers and millers/traders at procuring rates. The grain, including the rice and wheat acquired, is used for distribution among consumers for building buffer stocks. 

Along with the distribution of food grains, the objectives and expansion of PDS are also to distribute edible oils, coal, sugar, cloth and kerosene. The most important items included in the Public Distribution system are wheat, kerosene, rice and sugar. 

The system covers the whole population, as there is no way of direct targeting employed in the country. The objective and expansion of PDS are to issue ration cards to all households having registered residential addresses. It distributes goods of more than Rs.30,000 crore every year, slowly turning into the largest distribution network in the world. 

Flaws in Food Security System in India 

The Public Distribution System has faced a lot of criticism on various subject matters. Some of them are as follows- 

1. Limited Benefit to Poor from PDS- Many studies have suggested that the poor people of the rural areas have not received enough benefits from the Public Distribution System. Although, their dependency on the open market is much higher than on the Public distribution system for most goods. The studies also report that the cost-efficiency of reaching 20% of poor household families through the system’s cereals is little. In all states of India, less than 22 paise reach the poor for every rupee spent except in Daman and Diu and Goa, where only 28 paise reaches the low-income families. 
2. The Burden of Food Subsidy- The Public Distribution system is highly financed in India, which has led to a huge fiscal burden on the country’s central government. The food subsidy in India has risen to Rs. 2,850 crore in 1991-92, Rs. 662 crore in 1980-81. For 2022-23, the Central government allocates a food subsidy of around Rs. 2.06 lakh crore is the 97% budget of the Food and Public Distribution department. 
3. Leakages from PDS- Another flaw of the Public Distribution System connects to the leakage problem of the PDS. It occurs in huge losses in Storage and transportation and diversion of food grains to the open market. The main cause of the leakage is the diversion of food items in the open market. Following the extensive corrupt practices happens every day, resulting in the loss of food security in India. 
4. Price increases in PDS- Some economist of the country suggest that the functioning of the PDS have led to a price increase in the country. Because of this reason, the large procurement of food grains supplied by the government reduces the net quantity of the food from the open market. 
5. The problem of Urban Bias- Many economists have also observed that the distribution of food grains remains limited in urban areas. In contrast, in rural areas, the availability is very insufficient, resulting in another flaw in the food security market in India. 
6. Identification of beneficiaries- Some reports suggest that targeting mechanisms in the Public distribution system lead to large exclusion and inclusion errors. It means that the ineligible households are also receiving the benefits of the Public Distribution System instead of the actual beneficiaries who should get the food grains. 

Conclusion 

The objectives and expansion of PDS are heading towards supplying food grains to the Below Poverty line families at affordable rates. Food insecurity is the biggest concern in India, which sometimes leads to high leakage and diversion of food grains subsidized in the country, creating huge losses. To overcome such problems, the government needs to distribute the bio-fortified foods through PDS, making it a more relevant solution.