The Public Distribution System (PDS) in India is a crucial mechanism for ensuring food security for the poor and vulnerable sections of society. Despite distributing food grains to millions through over five lakh fair price shops, the system continues to face significant challenges, adversely affecting the nation’s food policy. According to a recent report by the Indian Council for Research on International Economic Relations (ICRIER), 28% of food grains meant for beneficiaries do not reach them. This leakage results in the wastage of approximately 20 million tons of food grains annually, causing a financial loss of around ₹69,000 crore. This underscores the urgent need for extensive reforms in the PDS.
The Targeted Public Distribution System (TPDS) was introduced in June 1997 to ensure the supply of food grains to the poor and needy. Before this, food distribution was available to the general population. The TPDS aimed to provide subsidized food grains to economically weaker sections. With the enactment of the National Food Security Act (NFSA) in September 2013, the system received a new direction. Under NFSA, 67% of the population is entitled to subsidized food grains, such as wheat and rice, either for free or at minimal costs. This initiative has provided nutritional security to the poor and vulnerable.
Despite improvements, several critical problems persist in the PDS. Leakage is a major challenge. According to ICRIER, approximately 20 million tons of food grains intended for beneficiaries are lost annually due to corruption, mismanagement, and operational inefficiencies. The Shanta Kumar Committee reported a 46% leakage in the PDS in its 2011-12 assessment. Efforts like the introduction of Point of Sale (POS) machines have attempted to reduce these leakages, yet they are far from being entirely eliminated.
Since 2016, Aadhaar-based verification has been implemented to make the PDS more transparent. As a result, over 5.8 crore fake ration cards have been canceled. However, only 64% of beneficiaries have completed their eKYC, leaving a substantial number yet to be verified. Ensuring the timely verification of the remaining beneficiaries is vital to eliminating malpractice in the distribution process. Linking the PDS with Direct Benefit Transfer (DBT) is another effective solution, enabling beneficiaries to receive direct financial support and minimizing losses in the food distribution process.
The lack of nutritious food grains in the PDS is another significant concern. Currently, the system primarily supplies wheat and rice, with limited inclusion of millet, sorghum, and ragi. According to the 2024 Global Hunger Index, India ranks 105th out of 127 countries, with a hunger index score of 27.3, categorizing it as “serious.” Additionally, a report by the Food and Agriculture Organization (FAO) reveals that 74% of India’s population does not have access to adequate nutritious food. Therefore, integrating nutrient-rich grains like millets and sorghum into the PDS is essential. Such measures would not only address hunger but also improve the nutritional status of the poor.
During the COVID-19 pandemic, the PDS provided significant relief to the poor. Under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), the government distributed free food grains to over 81 crore people, helping millions meet their food requirements and reducing poverty. According to a Brookings Institution report, the proportion of people living in extreme poverty in India dropped from 12.2% in 2011-12 to just 2% in 2022-23, a milestone in which the PDS played a pivotal role.
However, compared to its pandemic-era success, the current state of the PDS is concerning. Issues such as distribution irregularities, fake beneficiaries, and administrative shortcomings hinder its effectiveness. To address these challenges, structural reforms in the PDS are imperative. Widespread implementation of technologies like POS machines, regular beneficiary verification, and enhanced transparency are necessary steps.The government aims to reform the PDS by 2028 to ensure food security for the poor and vulnerable. Measures such as DBT, expedited eKYC completion for all beneficiaries, identification and elimination of fake ration cards, and regular audits of the distribution system can make the PDS more effective.
The PDS is a cornerstone of India’s food security system. However, its scope should not remain confined to mere food grain distribution. It should evolve into a strategic tool ensuring both nutritional security and the welfare of the poor. Reforms in the current system will enable India to achieve its goals of poverty eradication and nutritional security more swiftly.
Vikas Meshram is a senior journalist.)
