Subject: PDS

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 seeding – over 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

NFSA marks a paradigm shift in the approach to food security from welfare to rights based approach. It is the world’s largest food transfer programme and social safety net, accounting for around 50% of India’s overall social assistance budget.

Salient Features of the National Food Security Act (NFSA), 2013

Legal entitlement to food for 75% of rural and 50% of urban population81 crore people).

Targeted Public Distribution System (TPDS) supplies 5 kg of foodgrains per person per month at highly subsidized prices:

Antyodaya Anna Yojana (AAY) households receive 35 kg per family per month.

Life-cycle approach:

Pregnant & lactating women: Free meals + (PMMVY).

Children: ICDS & Mid-Day Meal/PM-POSHAN.

State-wise coverage is determined by the NITI Aayog by using the NSS Household Consumption Survey data.

Identification of eligible households is done by States/UTs

Food security allowance: If foodgrains are not supplied, beneficiaries receive compensation.

Grievance redressal mechanisms at state and district levels including State Food Commissions.

Role of NFSA in eliminating hunger and malnutrition in India

Reduced out-of-pocket spending on staple foods has improved dietary diversity by ‘crowding in’ the consumption of nutrient-dense foods

Fortified rice under NFSA covers 291 districts (Phase II) and over 65% of NFSA households

Malnourishment in children under 5 years has reduced (NHFS-5)

Stunting – from 38.4% to 35.5%,

Wasting – 21.0% to 19.3% and

Underweight – 35.8% to 32.1% .

Malnutrition among women aged 15-49 years has also reduced from 22.9% to 18.7%.

Food Security during COVID under Pradhan Mantri Garib Kalyan Anna Yojana

Regular PDS supply has reduced seasonal hunger in tribal belts of Jharkhand, Odisha, Chhattisgarh

ICDS covers an 90 million children, 11 million pregnant women, and 2 million adolescent girls

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

Fiscal Burden – Food subsidy budget @ 2.1 lakh cr in 2025-26

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

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 at Fair Price Shops (FPS) – Issues of under-weighing, overcharging etc

Persistent triple burden of malnutrition

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

Nutrition Education and Behavior Change through nudge theory. Eg- POSHAN Abhiyaan’s Jan Andolan people’s movement approach

Involvement of Civil Society – Eg- Akshaya Patra Foundation’s centralized kitchens model

Strengthening Life-cycle Approach to Nutrition– Eg- Karnataka’s “Mathrupoorna” scheme provides one full meal to pregnant women.

To realise SDG 1,2,3,and 12, the focus needs to shift from Food Security to Nutritional Security

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