{"id":142503,"date":"2024-11-12T20:35:17","date_gmt":"2024-11-12T15:05:17","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=editorial-analysis&#038;p=142503"},"modified":"2024-11-13T13:04:08","modified_gmt":"2024-11-13T07:34:08","slug":"public-distribution-system-in-india","status":"publish","type":"editorial-analysis","link":"https:\/\/pwonlyias.com\/stage\/editorial-analysis\/public-distribution-system-in-india","title":{"rendered":"Public Distribution System Must be Reformed to Fix Leakage, Invest in Farming"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Public Distribution System (PDS) in India is a critical tool for ensuring food security among the most vulnerable populations. However, persistent challenges have raised concerns about its long-term sustainability and effectiveness.<\/span><\/p>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.7979%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\"><span style=\"color: #000000;\"><b>The case of Food subsidy:<\/b><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">In FY 2023, India allocated <\/span><b>Rs 2.7 lakh crore for food subsidies.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">Some argue that these subsidies, while important for food security, could be repurposed to invest in agricultural R&#038;D, rural infrastructure, and skill development.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400; color: #000000;\">These investments are expected to yield higher long-term returns, fostering sustainable agricultural growth and improving rural livelihoods.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">\u00a0However <\/span><b>some defend food subsidies as investments only.<\/b><\/span><\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Course<\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Key Issues in the Public Distribution System (PDS)<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Excessive Coverage of Free Food<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The current PDS<\/span><b> covers 57% of India&#8217;s population,<\/b><span style=\"font-weight: 400;\"> which raises the question of whether such widespread distribution is necessary.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">According to World Bank (2022) data, 12.9% of Indians still live on less than $2.15 (PPP) a day, reflecting extreme poverty.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">However, the NITI Aayog (2024) report highlights a significant reduction in poverty<\/span><b>, with 248 million people lifted out of poverty over the last nine years.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The Multidimensional Poverty Index (MDPI) dropped from 29.17% in 2013-14 to 11.28% in 2022-23.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Leakages in PDS<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Around <\/span><b>28% of the allocated food grains<\/b><span style=\"font-weight: 400;\"> (about 19.69 million metric tonnes of rice and wheat) fail to reach the intended beneficiaries. This results in an annual loss of approximately <\/span><b>Rs 69,108 crore<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Despite technological interventions like PoS machines and biometric authentication, leakage in the Public Distribution System remains a challenge.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Although leakages have <\/span><b>decreased from 46% in 2011-12 (Shanta Kumar Committee, 2015) to 28% today,<\/b><span style=\"font-weight: 400;\"> they remain significant.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Nutritional Security<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/li>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The <\/span><b>Household Consumption Expenditure Survey (HCES)<\/b><span style=\"font-weight: 400;\"> data shows that the share of spending on <\/span><b>pulses and vegetables<\/b><span style=\"font-weight: 400;\"> has declined in 2022-23 compared to 2011-12, contributing to poor dietary diversity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">According to the <\/span><b>National Family Health Survey (2019-21)<\/b><span style=\"font-weight: 400;\">, <\/span><b>35.5% of children under five<\/b><span style=\"font-weight: 400;\"> are stunted, <\/span><b>19.3% are wasted<\/b><span style=\"font-weight: 400;\">, and <\/span><b>32.1% are underweight<\/b><span style=\"font-weight: 400;\">. This points to severe malnutrition issues that free grains alone cannot address.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Reforms Needed in the Public Distribution System (PDS)<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Revisit the Coverage of Free Food<\/b><span style=\"font-weight: 400;\">: Those above the <\/span><b>extreme poverty line<\/b><span style=\"font-weight: 400;\"> (Antyodaya) should contribute by paying at least <\/span><b>half the Minimum Support Price (MSP)<\/b><span style=\"font-weight: 400;\"> for the food they receive, as was done under the <\/span><b>Targeted PDS<\/b><span style=\"font-weight: 400;\"> introduced in 1997-98.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Redirect Savings to Agricultural Investments<\/b><span style=\"font-weight: 400;\">: Savings from reducing subsidies for those above the poverty line could be reinvested into <\/span><b>agriculture R&#038;D, rural infrastructure, and climate-resilient practices,<\/b><span style=\"font-weight: 400;\"> fostering long-term food security and reducing dependence on subsidies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Plug Leakages Through Direct Cash Transfers<\/b><span style=\"font-weight: 400;\">: To address persistent leakages, the government could switch to direct cash transfers to beneficiaries\u2019 accounts instead of physical food grain distribution.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Improving Nutritional Security:<\/b><span style=\"font-weight: 400;\"> It is proposed that some Fair Price Shops (FPS) be converted into <\/span><b>&#8220;nutrition hubs&#8221;<\/b><span style=\"font-weight: 400;\">, offering a diversified range of nutritious produce, including <\/span><b>eggs, pulses, millets, and fruits<\/b><span style=\"font-weight: 400;\">, alongside the usual cereals and address the growing concerns of <\/span><b>malnutrition<\/b><span style=\"font-weight: 400;\">.<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">This could be done using a <\/span><b>digital food coupon system<\/b><span style=\"font-weight: 400;\">, which beneficiaries could use to redeem for a wider variety of nutritious foods.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+CSE+Books\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Check Out UPSC CSE Books From PW Store<\/span><\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Conclusion<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Reforming the Public Distribution System is essential for a future-ready India. Through targeted reforms, we can build a more efficient, sustainable, and resilient food security system aligned with India\u2019s growth and development goals.<\/span><\/p>\n<table style=\"width: 99.6962%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\"><span style=\"color: #000000;\"><b>Mains Practice:<\/b><\/span><\/p>\n<p><span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"https:\/\/pwonlyias.com\/stage\/mains-answer-writing\/operational-inefficiencies-contribute-to-leakage-in-the-public-distribution-system\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Q. How do operational inefficiencies contribute to the leakage in the Public Distribution System (PDS), and what are the most effective solutions to address these issues? 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However, persistent challenges have raised concerns about its long-term sustainability and effectiveness.<\/p>\n","protected":false},"author":11,"featured_media":142332,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"tags":[],"paper-wise":[2089],"subject":[],"acf":[],"_links":{"self":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/editorial-analysis\/142503"}],"collection":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/editorial-analysis"}],"about":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/types\/editorial-analysis"}],"author":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/comments?post=142503"}],"version-history":[{"count":4,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/editorial-analysis\/142503\/revisions"}],"predecessor-version":[{"id":142559,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/editorial-analysis\/142503\/revisions\/142559"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media\/142332"}],"wp:attachment":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media?parent=142503"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/tags?post=142503"},{"taxonomy":"paper-wise","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/paper-wise?post=142503"},{"taxonomy":"subject","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/subject?post=142503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}