QUE: What is Public Distribution System (PDS)? Explain its purpose and limitations and the steps taken by the government in this field.

PDS system is a government-run program under which food items are provided to the needy class at cheap rates.

• Objectives:-

Protect the general class from the rising prices of grains and other items

→Increase the nutritional level.

→Indirectly control market prices.

→Distribution of grains and other items to the deprived class at cheap prices

• Limitations

→Initially, this scheme was limited to urban areas. Due to insufficient development in rural areas, rural people remain deprived of benefits.

→The rural poor do not get enough benefit of the scheme due to various problems, hence they are forced to buy items from the market.

→The financial burden on the government increases due to increasing MSP (support price) and government policies.

→ Due to high number of ghost beneficiaries and various administrative and technical problems, the real beneficiaries were deprived of the benefits of the scheme. For example, not having a ration card, not getting benefits due to migration to another state.

→ Corruption in the scheme, linkage problem.

→ Wastage of food grains due to lack of grain storage system..

→ Increase in transportation cost increases the cost of food grains distribution.

→ Also, large-scale purchase of food grains from MSP creates shortage in the market..

• Government measures:-

→ Linking of ration cards with Aadhaar and biometric system in Point of Sale (POS) machines etc. has reduced the number of ghost beneficiaries and reduced leakage.

→ Digitalization of ration cards and computerization of the entire PDS system has reduced food grains wastage and leakage.

→ Facility like One Nation, One Ration Card will help in extending benefits to migrant workers by increasing the portability of ration cards.

→ Taking into account the recommendations of the PDS Reforms Committee (2006) and the Shantakumar Committee, cash transfer arrangements can be made in areas where PDS is not possible to strengthen the PDS system.