The PDS (started in 1960s) is a government-run food security mechanism that provides subsidised foodgrains to eligible households through a network of Fair Price Shops.
Major challenges of the PDS
Weak supply chain management – Storage Losses due to poor warehousing and handling. Eg- 40% of the food wasted (1.5 lakh crore or 1% of the GDP)
Open ended procurement leads to overflowing of FCI godowns
Diversion – Eg- 28% of allocated foodgrains fail to reach beneficiaries as per HCES 2022-23.
Inclusion and exclusion errors due to faulty beneficiary identification.
Corruption and ghost beneficiaries – Over 47 million bogus ration cards cancelled between 2013-2021
Corruption at Fair Price Shops (FPS) – Issues of under-weighing, overcharging etc
Fiscal Burden – Food subsidy budget @ 2.1 lakh cr in 2025-26
PDS is cereal-centric, ignoring dietary diversity. Leads to triple burden of malnutrition – undernutrition, obesity, micronutrient deficiency.
Technology issues – Internet failure, biometric mismatch and device malfunction under e-PoS / Aadhaar authentication.
Way Forward
Shanta Kumar Committee Recommendations on Revamping of PDS
Direct Procurement by States
Private Sector Involvement in procurement, storage, and distribution
Diversify the food basket – Include millets, pulses, edible oil and iodised salt for nutritional security.
Strengthen grievance redressal – Set up toll-free helplines, social audits and citizen charters at FPS level.
Community monitoring – Involve self-help groups, local bodies and civil society in supervision.
Periodic updating and verification of ration cards.
Universal PDS similar to Tamil Nadu’s model.
Optimise buffer stock norms to reduce food grain wastage.
The PDS remains a vital tool for India’s food security and realise SDG 1,2,3,and 12