Public Distribution System (PDS) - Notes


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PUBLIC DISTRIBUTION SYSTEM (PDS):


  • PDS is the distribution of essential commodities to a large number of people through a net work of Fair Price Shops (FPS) also called ration shops at reasonable prices.
  • PDS is a major instrument of Government economic policy for ensuring the availability of food grains to the public at affordable prices.
  • PDS is an important constituent in the strategy of poverty eradication.
  • PDS is meant for providing minimum nutritious diet to the people.
  • PDS is also meant for enhancing the Food security for the poor.
  • There is a network of around 5 lakh Fair Price shops in the country. India’s PDS is the largest distribution net work in the World.


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When the PDS was introduced in India?
  1. The fundamental objective of PDS is price stabilization.
  2. The rationing was first introduced in Bombay in the year 1939.
  3. The PDS was brought up in the year 1942 (second World war) due to the shortage of food grains.
  4. Food grain policy committee of 1943 introduced rationing system exclusively for urban areas.

What are the commodities that are supplied through PDS?

  1. Wheat
  2. Rice
  3. Sugar
  4. Edible oils
  5. Kerosene
  6. Soft-coke
*      The states can add any item to the list and supply.


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Who implements the PDS? Who is responsible for the supply of the food grains to the people at a cheaper rate? Read now….
It is the responsibility of both the Central Government and State Governments.

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Ø  Central Government will

ü  Procure (Collection of food grains),
ü  Store
ü  Transport the food grains.

This is done by the Central Government through Food Corporation of India.


Ø  The State Government will

·        Identify the families below the poverty line

·        Issue ration cards to the eligible people.

·        Distributes the food grains

·        Monitors and supervises the FPS


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Note: Around 10% of the total production is supplied through PDS.




DRAWBACKS:

1.      The financial burden on the Government increases because of the subsidy.
2.      Inadequate coverage of rural areas.
3.      Inadequate coverage of backward areas. 
4.      Corruption. (Because of the little profit margin)
5.      Nearly 50 percent of the villages are not covered under PDS. (Hence government went for Revamped Public Distribution system- RPDS)

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REVAMPED PUBLIC DISTRIBUTION SYSTEM:
  1. Launched in the year 1992.
  2. This is an area specific program with an emphasis on improving the PDS in 1775 selected in the remote
·        Tribal
·        Desert
·        Drought prone
·        Hill areas
  1. This program opened 11000 more FPS (Fair Price Shops).
  2. Issued more than ed ific program with an emphasis on improving the PDS in 1700 selected in the remote
  3. 21 lakh new ration cards.
  4. Mobile shops operated where permanent FPS are not available.
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TARGETED PUBLIC DISTRIBUTION SYSTEM (TPDS):
  1. TPDS was launched in the year 1997.
  2. TPDS was intended to benefit about 6 crore poor families.
  3. Initial allocation was 10 kg of food grains.
  4. This has been increased to 35 kg.


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ANNAPURNA:
  1. This is 100 percent central Government launched scheme.
  2. Launched in the year 2000.
  3. This is meant for providing food security for senior citizens. (Above 65 years) who are not covered under National Old Age pension scheme.
  4. 10 kg of food grains are supplied to them at zero cost.

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ANTYODAYA ANNA YOJANA (AAY):
  1. AAY was launched in the year 2001.
  2. 25 kg of food grains were made available at a subsided price of 2 rs per kg for wheat and rs 3 for rice.
  3. The quantity has been enhanced to 35 kg during 2002.



The Under Secretary of the GOI in Ministry of consumer Affairs and PDS writes a letter to the Secretary of the state Department of Food, Civil Supplies and consumer Affairs stating the monthly allocation of food grains to the state. This is mentioned in category wise for Anthyodaya Anna Yojana (AAY), Below poverty line (BPL) and Above Poverty Line (APL) and the food grains in tons is mentioned.
This is valid form April of the current year to March of next year.


            India is associated with a number of international agencies working in the field of food related matters. 

Ø  They are

  • World Food Program (WFP) 2008-12

  • SAARC Food Bank – 2007 – Dhaka
*      Established in the year 2007
*      Head Quarters – Dhaka

  • Food and Agriculture Organization (FAO)
*      Established – 1945
*      Head Quarters – Rome (Italy)

  • International Grains Council (IGC) 
*      Established - 1949
*      Head Quarters - London

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Note: Different states follow different mechanisms. Please follow the mechanism in your state.