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Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

[pib] “Anna-Chakra” Supply Chain Optimisation Tool for PDS 

PIBPrelims Only | Social Justice | Mains Paper 2: Laws, Institutions & Bodies Constituted For The Vulnerable Sections

Why in the News?

The Union Minister of State for the Ministry of Consumer Affairs, Food and Public Distribution has provided crucial information regarding the Anna-Chakra Tool to the Parliament.

About Anna-Chakra:

  • Purpose: Digital tool to optimise supply chain of the Public Distribution System (PDS).
  • Developed by: World Food Programme (WFP) and Foundation for Innovation and Technology Transfer (IIT-Delhi).
  • Implementation: Adopted in 30 States/UTs, except Manipur.
  • Coverage: Supports 4.37 lakh Fair Price Shops and 6,700 warehouses.
  • Savings: Reduces logistics/fuel costs, saving about ₹250 crore annually.
  • Environmental Impact: Route optimisation reduces travel distance by 15–50%, cutting CO₂ emissions.

Back2Basics: Public Distribution System (PDS) in India:

  • Objective: Provides subsidised food grains to poor households, ensuring food security.
  • History: Originated in inter-war years; expanded after 1960s food shortages.
  • Reforms: Revamped PDS (1992) extended coverage to rural and poverty-prone areas.
  • Structure:
    • Centre (FCI) – procurement, storage, transportation, bulk allocation.
    • States – distribute food grains to families via Fair Price Shops.
  • Coverage: Serves ~800 million people through 5 lakh+ Fair Price Shops.
  • Items Distributed: Wheat, rice, sugar, kerosene; some states add pulses and oils.
  • Significance: Shields poor households from food price shocks and economic distress.

 

[UPSC 2008] Consider the following statements:

1. Regarding the procurement of food grains, Government of India follows a procurement target rather than an open-ended procurement policy.

2. Government of India announces minimum support prices only for cereals.

3. For distribution under Targeted Public Distribution System (TPDS), wheat and rice are issued by the Government of India at uniform Central issue prices to the States/Union Territories.

Which of the statements given above is/are correct?”

Options: (a) 1 and 2 (b) 2 only (c) 1 and 3* (d) 3 only

 

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