India’s Public Distribution System (PDS) and steps to make food grain distribution system more effective

India’s Public Distribution System (PDS) is the largest distribution network of its kind in the world. PDS was introduced around World War II as a war-time rationing measure. The Public Distribution System (PDS), till 1992, was a general entitlement scheme for all consumers without any specific target. The Revamped Public Distribution System (RPDS) was launched in June 1992.

Subsequently, in 1997, the government launched the Targeted Public Distribution System (TPDS), with a focus on the poor. TPDS aims to provide subsidized 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 shop, where the beneficiary buys his entitlement. 

• In September 2013, Parliament enacted the National Food Security Act, 2013. The Act relies largely on the existing TPDS to deliver food grains as legal entitlements to poor households. This marks a shift by making the right to food a justiciable right. 

• The High Level Committee, chaired by the former food minister Shanta Kumar, in its recommendation to government last year had stated gradual introduction of cash transfers in PDS, starting with large cities. This will be much more cost-effective way to help the poor, without much distortion in the production basket, and in line with best international practices. 

• To identify and weed-out duplicate/ineligible beneficiaries, and to enable rightful targeting of food subsidies, seeding of Aadhaar numbers of beneficiaries with their Ration Cards is being done by States and UTs. Presently, almost 85% of all ration cards have been seeded. 

• Intra-state portability of ration cards: Facility enabling PDS beneficiaries to lift their entitled food grains from any fair price shop in the State has been started fully in Andhra Pradesh, Haryana, Maharashtra, Gujarat, etc. 

• ‘Integrated Management of PDS’ (IM-PDS): A new Central Sector Scheme has been approved to be implemented during FY 2018-19 and FY 2019-20 for establishing Public Distribution System Network (PDSN) to implement national level portability, central data repository and central monitoring system of PDS operations.