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07 Mar 2025
GS Paper 3
Economy
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)
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.