Answer

The National Food Security Act (NFSA), enacted in 2013, seeks to provide subsidised food grains to around two-thirds of India’s population, ensuring food security and alleviating hunger. Implemented through the Public Distribution System (PDS), the Act guarantees affordable access to essential food items for vulnerable communities, strengthening the country’s food safety net and addressing nutritional needs among low-income households.

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Operational Inefficiencies Contributing to PDS Leakages

• Inaccurate Targeting of Beneficiaries: Misidentification of beneficiaries leads to food grains reaching ghost beneficiaries, creating leakages and resource wastage.
  For example: 28% of allocated food grains fail to reach the intended beneficiaries, resulting in substantial annual losses.
• Diversion of Food Grains: Food grains meant for PDS are often diverted to the open market due to poor supervision and lack of robust tracking, resulting in unauthorised sales and leakages.
  For example: The Shanta Kumar Committee (2015) noted leakages as high as 46% in 2011-12(NSSO)
• Lack of Technological Integration: Although point-of-sale (PoS) devices and biometric authentication systems have been introduced, implementation gaps allow unauthorised access and system bypass.
  For example: While the introduction of PoS machines has reduced leakages from 46% to 28%, significant gaps still remain, allowing for potential misuse and unauthorised distribution.
• Poor Storage and Handling Practices: Inadequate storage facilities lead to food grain losses from spoilage and pest infestation, further contributing to leakages.
  For example: In 2021, the Food Corporation of India (FCI) reported that 5% of stored grains were lost annually due to poor storage.
• Excessive Coverage of Beneficiaries: Extending PDS coverage to over 80 crore in population increases pressure on resources, causing strains that contribute to leakages.
  For example: The Shanta Kumar Committee recommended reducing PDS coverage from 67% to 40% by revisiting the Food Security Act to enhance resource allocation and reduce leakages.
• Inadequate Monitoring and Evaluation: Absence of regular audits and inspections results in a lack of accountability, enabling manipulation by intermediaries and encouraging leakages.
• Inefficient Grievance Redressal Mechanism: Beneficiaries often lack channels to report issues or irregularities, allowing leakages to persist unchecked and undermining trust in the system.

Effective Solutions to Address PDS Inefficiencies

• Targeted Beneficiary Identification: Use updated socio-economic data for dynamic beneficiary lists to reduce misidentification and improve targeting efficiency.
  For example: Implementing SECC-2023 data for targeting can help ensure the benefits reach those most in need.
• Introduce Direct Cash Transfers (DCT): Transition to direct cash transfers for eligible beneficiaries, reducing leakages by bypassing physical grain distribution channels.
  For example: The Jan Dhan-Aadhaar-Mobile (JAM) trinity has already proven effective in minimising leakages in other welfare schemes.
• Strengthen Storage Infrastructure: Improve storage facilities and handling practices to reduce spoilage, ensuring food grains reach intended beneficiaries without loss.
  For example: The Pradhan Mantri Kisan SAMPADA Yojana promotes cold chain and storage infrastructure, minimising grain wastage.
• Digital Monitoring Systems: Implement real-time tracking and digital audits in the supply chain to detect and reduce unauthorised diversions.
  For example: The Annavitran Portal tracks the movement of food grains, enabling better oversight and reducing diversion risks.
• Streamline Beneficiary Coverage: Limit PDS coverage to those most in need, reallocating resources to improve efficiency and focus on extreme poverty areas.
  For example: The Targeted PDS (1997) approach suggested similar measures, focusing resources on the poorest households.
• Regular Third-Party Audits: Conduct third-party audits and encourage civil society participation in monitoring PDS operations to improve transparency and reduce leakages.
  For example: The CAG conducts PDS audits which highlight inefficiencies, helping policymakers make data-driven reforms.
• Enhanced Grievance Redressal Mechanisms:Establish an accessible and responsive grievance redressal system that empowers beneficiaries to report issues without fear.

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Addressing inefficiencies in the Public Distribution System is crucial for ensuring food security among India’s vulnerable populations. By implementing targeted reforms and enhancing transparency, India can build a robust PDS that minimises leakages and maximises benefits. A strengthened PDS will support the nation’s long-term goals of sustainable food security and social equity.

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