Public Distribution System and Food Security in India
Public Distribution System and Food Security in India
Introduction
The Public distribution system (PDS) is a food security system established under the Ministry of Consumer
Affairs, Food, and Public Distribution. It includes within its fold a government-sponsored chain of
approximately 5.35 lakh fair price shops entrusted with the work of distributing basic food and non-food
commodities to the needy sections of the society at very cheap prices.
● The responsibility of operating PDS is jointly shared by the Central and the State Governments.
● The Central Government, through Food Corporation of India (FCI), undertakes procurement, storage,
transportation and bulk allocation of food grains to the State Governments.
● Operational responsibilities like allocation within the State, identification of eligible families, issue of
Ration Cards and supervision of the functioning of Fair Price Shops (FPSs) etc., lies with the State
Governments.
● Under the PDS, presently the commodities namely wheat, rice, sugar and kerosene are being allocated
to the States/UTs for distribution. Some States/UTs also distribute additional items of mass
consumption through the PDS outlets such as pulses, edible oils, iodized salt, spices, etc.
● It was expanded in the 1960s as a response to the food shortages of the time; subsequently, the
government set up the Agriculture Prices Commission and the FCI to improve domestic procurement
and storage of food grains for PDS.
● By the 1970s, PDS had evolved into a universal scheme for the distribution of subsidised food
● Till 1992, PDS was a general entitlement scheme for all consumers without any specific target.
● The Revamped Public Distribution System (RPDS) was launched in June, 1992 with a view to
strengthen and streamline the PDS as well as to improve its reach in the far-flung, hilly, remote and
inaccessible areas where a substantial section of the underprivileged classes lives.
● In June, 1997, the Government of India launched the Targeted Public Distribution System (TPDS) with
a focus on the poor.
● Antyodaya Anna Yojana (AAY): AAY was a step in the direction of making TPDS aim at reducing hunger
among the poorest segments of the BPL population.
● 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 identification of the poor under the scheme is done by the States. TPDS maintains universal
character of PDS but has special focus on BPL.
● Total number of families covered under BPL and AAY is 6.52 crores. The allocated amount is 35 kg per
month per household to BPL and AAY, while for APL, it will be between 15 kg to 35
kg/month/household.
● Targeting: Those earning a maximum of Rs. 15,000 per annum are kept within BPL. Initially 10 kg of
food grains were provided per household per month, but in 2002 the limit was revised to 35
kg/household/month.
● Dual Prices: In 2000, the Central Issue Prices for the PDS to state governments was set at 50% of the
economic cost of FCI for BPL families and at 100% of the economic cost for APL families. In 2001, a
third price was also issued for beneficiaries of ANTYODAYA ANNA YOJANA (Rs 2/kg of wheat and Rs.
3/kg of rice per family under AAY).
● Central-State Control: PDS is designed and managed by State Governments, while the Central
Government allocates the foodgrains to the states. Under TPDS, the size of the BPL population and
the entitlement for them is decided by the Central Government.
● The central and state governments share responsibilities in order to provide food grains to the
identified beneficiaries.
● The Central Government procures food grains from farmers at a minimum support price (MSP) and
sells it to states at central issue prices.
● It is responsible for transporting the grains to godowns in each state. States bear the responsibility of
transporting food grains from these godowns to each fair price shop (ration shop), where the
beneficiary buys the food grains at the lower central issue price.
● Many states further subsidise the price of food grains before selling it to beneficiaries. The Food
Corporation of India (FCI) is the nodal agency at the Centre, responsible for transporting food grains
to the state godowns.
● More specifically, FCI is responsible for:
o procuring grains at the MSP from farmers,
o maintaining operational and buffer stocks of grains to ensure food security,
4 | Page © Economy (GS Paper 3) by Ayussh Sanghi Page 1
o allocating grains to states,
o distributing and transporting grains to the state depots, and
o selling the grains to states at the central issue price to be eventually passed on to the
beneficiaries.
Linking with Adhar: 56% of the digitised cards have been seeded with unique identification number Aadhaar.
This leads to better identification and hence improved targeting.
Computerisation of FPS allocation: This makes declaration of stock balance, issuance of web-based truck
challans, etc very convenient. Furthermore, it allows for quick and efficient tracking of transactions. Several
states have also installed ePOS (electronic point of sale) devices at the fair price shops to track the sale of
foodgrains to actual cardholders on a real time basis.
Use of Global Positioning System (GPS) technology: States like Chhattisgarh and Tamil Nadu use GPS
technology to track movement of trucks carrying food grains from state depots to FPS. This checks leakages
to a great extent.
DBT: Three UTs-Chandigarh, Puducherry and Dadra and Nagar Haveli have implemented DBT on a pilot basis.
Alternatives to TPDS
● Cash Transfers: The high level committee chaired by Shanta Kumar in 2015 had recommended
gradual introduction of cash transfers in PDS, starting with large cities with more than 1 million
population; extending it to grain surplus states, and then giving option to deficit states to opt for cash
or physical grain distribution.
● DBT in the name of lady of the house, and routed it through PM Jan Dhan Yojana, and dovetailing it
with the UIDAI has also been suggested.
● This will help in better targeting, and plugging leakages. With a massive proportion of bank accounts
being already linked with Adhar, the case for authorities in adopting DBT with respect to public
distribution system (PDS) beneficiaries becomes stronger.
● For instance, out the around 6.72 crore beneficiaries in Tamil Nadu, Aadhaar-linking has been done
for 6.68 crore. Besides, a majority of the ration cardholders are either Pradhan Mantri Jan Dhan Yojana
(PMJDY) account holders (1.05 crore PMJDY acc holders in Tamil Nadu) or recipients of subsidy on
cooking gas cylinders. So they are already getting financial assistance from government agencies
through their bank accounts.
Objectives:
● To empower all NFSA beneficiaries to become AtmaNirbhar for their food security anywhere in the
country, through portability of their existing ration cards enabling them.
● To seamlessly lift their entitled subsidized foodgrains (in part or full) from any Fair Price Shop of their
choice.
● To enable family members to lift balance/required amount of foodgrains on the same ration card at
their native/ any place from the FPS of their choice.
Significance of ONORC:
● Enabling Right to Food: Previously, ration cardholders can avail their entitlement of subsidised food
grains under the National Food Security Act, only from the designated Fair price shop (FPS) within the
concerned state.
● However, if a beneficiary were to shift to another state, he/she would need to apply for a new ration
card in the second state.
● Thus, ONORC envisages removing the geographical hindrance to social justice and enabling the right
to food.
● Supporting One-Third of Population: Nearly, 37% of the population is that of migrant labourers. The
scheme is therefore important for anyone who is going to move from one place to the other.
● Reducing Leakages: The ONORC can reduce leakages, because the fundamental prerequisite of this
scheme is deduplication.
● This will ensure that the same person does not figure as a beneficiary in two different locations of the
country.
● Further, the scheme is linked with Aadhaar and biometrics, this removes most possibilities of
corruption.
● Reducing Social Discrimination: ONORC will be particularly beneficial for women and other
disadvantaged groups, given how social identity (caste, class and gender) and other contextual factors
(including power relations) provide a strong backdrop in accessing PDS (Public Distribution System).
Associated Challenges
● Exclusion Error: The digitisation of this PDS process, through Aadhaar-linked ration cards and smart
cards, has been pushed in an effort to reduce leakages. However, there has been a rise of exclusion
errors in post-Aadhaar seeding.
Way Forward
● If emergencies continue to hamper uptake at ration shops, alternate delivery channels can be
considered for delivering food grains to vulnerable groups.
● Food security should be seen from a broader framework of nutritional security. Therefore, ONORC
must allow the portability of Integrated Child Development Services, Mid-Day Meals, immunization,
health care and other facilities.
● In the longer run, the PDS system may be replaced by a fool-proof food coupon system or direct benefit
transfer.
● Wherein, a Below Poverty Line family can buy rice, pulses, sugar and oil from any Kirana store at the
market price, by either paying fully through the coupon or by cash.
Food Security
The definition of food security has evolved over a period of time. As a concept, food security originated in the
mid-1970s, in the wake of global food crisis.
The initial focus of attention was assuring the availability and to some degree the price stability of basic
foodstuffs at the international and national level.
This was then broadened to incorporate the demand side of food security in early eighties. During the nineties
issues such food safety, nutrition, dietary needs and food preferences were also considered important
ingredients of food security.
The government policy needs to adopt an integrated policy framework to facilitate agriculture productivity.
The measures should focus mainly on rationale distribution of cultivable land, improving the size of the farms
and providing security to the tenant cultivators apart from providing the farmers with improved technology
for cultivation and improved inputs like irrigation facilities, availability of better quality seeds, fertilizers and
credits at lower interest rates.
● Aeroponics and hydroponics are systems that allow plants to be grown without soil. Plants grown in
this way take in water and nutrients efficiently. These methods can be used in the areas of poor soil
quality and soil erosion.
● Adoption of crops and techniques with lower water requirements, such as the System of Rice
Intensification (SRI) method of rice production, contributes to resilience by enabling equal or better
yields to be achieved with less water withdrawal.
● Planting crops with lower water requirements and agricultural practices that maintain soil moisture,
such as maintaining vegetative cover between crops, can also contribute to resilience.
● Crop diversification: Higher profitability and stability in production highlight the importance of crop
diversification, e.g. legumes alternative with rice and wheat. Growing of non-cereal crops such as
oilseeds, fruits and vegetables etc need to be encouraged.
● Strategies for better food storage should be adopted.
● The Blue Revolution: Sea, lakes and rivers can be used to provide food and nutrition. Fish are a very
good source of protein and do not require good soil.
● Biotechnology and appropriate technology: Selective breeding or genetic modification (GM) of plants
and animals can be done to produce specific features and adaptations.
● For example, selective breeding has been used on dairy cows to increase milk yields. GM has been used
on wheat to produce crops that are disease resistant.
● Existing direct nutrition programmes should be revamped to enable management by women’s Self
Help Groups (SHGs) and /or local bodies along with orientation and training of community health
workers, Panchayati Raj Institution (PRI) members, other opinion leaders, caregivers and other
stakeholders can be another area.
The Umbrella ICDS is a centrally sponsored scheme implemented by the Ministry of Women and Child
Development. It was launched in 1975.
Objectives of ICDS
● To improve the nutritional and health status of children in the age-group 0-6 years.
● To lay the foundation for proper psychological, physical and social development of the child.
● To reduce the incidence of mortality, morbidity, malnutrition and school dropout.
● It provides cash incentive amounting to Rs.5,000/- in three instalments directly to the Bank/Post Office
Account of Pregnant Women and Lactating Mother (PW&LM) in DBT (Direct Benefit Transfer) Mode
during pregnancy and lactation in response to individual fulfilling specific conditions.
● National Creche Scheme:
● It provides day care facilities to children of age group of 6 months to 6 years of working women.
● The facilities are provided for seven and half hours a day for 26 days in a month.
● Children are provided with supplementary nutrition, early childcare education, and health and
sleeping facilities.
● It aims at out of school girls in the age group 11-14, to empower and improve their social status
through nutrition, life skills and home skills.
● The scheme has nutritional and non nutritional components which include nutrition; iron and folic
acid supplementation; health check up and referral service; nutrition and health education;
mainstreaming out of school girls to join formal schooling bridge course/ skill training; life skill
education, home management etc,; counselling/ guidance on accessing public services.
● It aims to contribute to the improvement and well-being of children in difficult circumstances, as well
as, reduction of vulnerabilities to situations and actions that lead to abuse, neglect, exploitation,
abandonment and separation of children from parents.
● It is the largest school feeding programme of its kind in the world, covering students enrolled in
government schools from Classes 1 to 8.
● The basic objective of this scheme is to enhance enrolment in schools.
● Nodal Ministry: Ministry of Education.
● Background: The programme was first introduced in 1925 for disadvantaged children in Madras
Municipal Corporation.
● The union government launched as a centrally sponsored scheme on a pilot basis in 1995 for children
in Classes 1 to 5.
● By October 2007, MDMS had been scaled up to Class 8.
● Current Status: The current version of the programme, renamed PM Poshan Shakti Nirman or PM
Poshan in 2021.
● Scale of Coverage: The scheme covers 11.80 crore children across Classes 1 to 8 (age group 6 to 14).
● Legal Entitlement: It is not just a scheme, but a legal entitlement of all school-going children in primary
and upper primary classes, through the National Food Security Act (NFSA), 2013.
India’s one of the biggest flagship programs, the Rs 8,000 crore-a-year Supplementary Nutrition Program
(SNP) to fight child malnourishment under ICDS suffers from gross violations and misuse of rules and has
failed in meeting its ends.
● Due to meager allocation of resources and faulty policy designs, the overall impact of ICDS and MDM
over malnutrition has remained very limited. The states with high degree of malnutrition, have low
coverage of both the schemes.
● Poor quality of nutrient deficient meal is being served at most of the schools.
● ICDS has limited itself with just one function of Supplementary Nutritional Program (SNP) and is not
concerned about other functions. Also, it focuses on children 3-6 years of age, so, 0-3 years (when
maximum nutrition is required) old suffer neglect.
● Since food is nutrition deficient in ICDS as well, children are facing the problem of hidden hunger i.e.
prevalence of Iodine, calcium, iron or Vitamin A deficiency.
● Child Immunization and pre-school education is neglected under ICDS, except in Tamil Nadu (FOCUS
report).
● ICDS is poorly implemented. Also, several posts such as of CDPO and supervisors remain vacant in
many states.
● The program was launched on International Women’s Day on 8 March 2018 at Jhunjhunu in Rajasthan.
● The POSHAN (Prime Minister’s Overarching Scheme for Holistic Nutrition) Abhiyaan spreads
awareness towards the problems pertaining to malnutrition and brings viable solutions with it.
● Implementation status reports of the Abhiyaan are submitted by NITI Aayog every six months. The
implementation of POSHAN Abhiyaan is carried out through the Technical Support Unit (TSU)
established at NITI Aayog, which will also provide research, policy, and technical support for the
program.
● As the mission is expected to eradicate malnutrition by 2022, it has been taken up by multiple
ministries. This helps in expanding the outreach of the mission and thereby facilitating its
implementation.
● The execution of the mission is sufficed through technology as well as convergence among various
modules and departments.
● The term ‘Poshan’ stands for ‘Prime Minister’s Overarching Scheme for Holistic Nutrition’.
● Some specific targets of the program are reducing stunting, anemia, under-nutrition, and low birth
weight.
● It also involves mapping various other schemes such as Janani Suraksha Yojana, Scheme for
Adolescent Girls, Pradhan Mantri Matru Vandana Yojana, Swachh Bharat Abhiyaan, National Health
Mission, and so on.
● The program enables synergies among these schemes through an ICT-based real-time monitoring
system, robust convergence among the various related schemes, incentivizing states and UTs for
meeting the set targets, and optimizing Anganwadi centers’ functioning, apart from conducting social
audits.
● Rashtriya POSHAN Maah is celebrated in September. The activities in POSHAN Maah were focused on
Social as well as Behavioural Change and Communication. It helped to build awareness through
assertive dialogue and thereby educated a lot of people in the way of communication around this
topic.
● The POSHAN Maah was widely based around antenatal care, optimal breastfeeding, anaemia, growth
monitoring, girls’ - education, diet, hygiene and sanitation, eating healthy, and other such themes.
● Over 120 million women, 60 million men, and 130 million children were reached out to through the
implementation of the POSHAN Maah. Collectively, POSHAN Maah was successful in reaching more
than 30 Crore people in just 30 days.
● About 67% of the total population therefore is covered under the Act to receive highly subsidized
foodgrains.
● The Act seeks to provide food and nutritional security in human life cycle approach, by ensuring access
to adequate quantity of quality food at affordable prices to people to live a life with dignity and for
matter connected therewith or incidental to it.
● The Act brings the Right to Food within the framework of legally mandated entitlements.
● It entitles 75% of the rural population and 50% of the urban population (67% of the population i.e. 80
crore people) for subsidized grain under TPDS.
● The act provides ‘individual entitlement’ and each individual will be provided 5 kg of wheat, rice or
coarse cereals a month at the rate of Rs 3, Rs 2, and Re 1 per kg respectively. These Prices may be
changed by the Central Government from time to time, but after 3 years of the act only and not above
the MSP.
● 2.43 crore people under AAY will get 35 kg food grain per household per month, like earlier.
● There is a special focus on nutritional support to pregnant women and lactating mothers and children
up to 14 years of age by entitling them to nutritious meals. Pregnant women will also be entitled to
receive cash maternity benefit of Rs. 6,000 in order to partly compensate her for the wage loss during
the period of pregnancy and also to supplement nutrition.
● The act contains an important provision for women empowerment by giving status of head of the
household to the eldest woman of the household, for the purpose of issuing of ration cards.
● State Governments have been given responsibilities to identify the households within 365 days of the
passage of the act.
Conclusion
PDS
● PDS is one of the biggest welfare programmes of the government, helping farmers sell their produce
at remunerative prices as well as the poorer sections of society to buy food grains at affordable rates.
● Its effectiveness can be enhanced with technology based solutions as is evident from some of the
states’ successes towards the same. Shifting towards DBT is another idea, but with caution.
● In its report on State finances, the Reserve Bank of India (RBI) has advised States that are planning to
shift to cash transfer to be cautious while effecting the migration.
Food security
● Food security of a nation is ensured if all of its citizens have enough nutritious food available, all
persons have the capacity to buy food of acceptable quality and there is no barrier on access to food.
● The right to food is a well established principle of international human rights law. It has evolved to
include an obligation for state parties to respect, protect, and fulfil their citizens’ right to food security.
1. The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if
any) paid to the farmers plus… [2019]
Q.1. Critically analyse whether the Aadhaar-based biometric authentication has been able to reduce
PDS leakages or not. [GS 3- 2018]
Q.2. What are the salient features of the National Food Security Act 2013? How has the Food security
Bill helped in eliminating hunger and malnutrition in India? [GS 3- 2021]