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What are the reformative steps taken by the Government to make food grain distribution system more effective?

India’s Public Distribution System is the world’s largest food transfer programme and India’s most far-reaching social safety net, accounting for around 50% of the overall social assistance budget.

Objectives of PDS

Food security

Stabilise foodgrain prices

Prevent hunger and malnutrition

Safety net during emergencies

Reformative Steps to Strengthen India’s Food-Grain Distribution System

National Food Security Act, 2013 – Expanded the PDS coverage to 67% of population

End-to-End Digitalisation of PDS

All 20.4 Cr household ration cards digitised

Aadhaar seedingover 47 million bogus ration cards removed (2013-21).

Implementation of Warehouse Inventory Network and Governing System (WINGS) application to automate tagging of mills

5.33 lakh e-PoS devices installed in all Fair Price Shops.

One Nation One Ration Card (ONORC) – Ensures nationwide portability of PDS benefits.

Doorstep Delivery of Foodgrains in Punjab, Haryana, Delhi etc.

Strengthening Storage & Supply Chain

GPS-based tracking of trucks. Eg- Chhatisgarh

Expansion of warehouses under PEG Scheme (Private Entrepreneurs Guarantee).

Direct Benefit Transfer (DBT) in Chandigarh, Puducherry, Dadra & Nagar Haveli.

Decentralised Procurement in states like Punjab, Haryana, MP, Chhattisgarh, Telangana.

Nutritional Improvements in PDS

Introduction of fortified rice under NFSA, ICDS and PM-POSHAN.

Some states (Tamil Nadu, Odisha) supply pulses, millets, oil and eggs through PDS.

However, despite these steps there are few challenges

As per study by Crisil using a ‘thali index’, up to 50% of rural and 20% of urban Indians cannot afford two balanced meals a day

Even with PDS support, food deprivation remained 40% in rural and 10% in urban areas

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

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.

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