Strictly following MSP norms and keeping only necessary buffer stocks can help curb inflation and prevent rapid changes in cropping patterns. Using technology like barcodes and Aadhaar cards can help identify beneficiaries and weed out fakes, reducing malpractices. This will help ensure people receive nutritious food. Privatizing through PPP models and increasing access points could improve efficiency and distribution. Long-term solutions include targeting ration amounts to nutritional needs, allowing FPS to sell other goods, and integrating employment schemes to further food security goals. Overall, reforms aim to enhance transparency and accountability in the large but troubled PDS system.

1. PLUGGING THE LEAKS
IMPROVING REACH AND EFFICIENCY OF THE
PUBLIC DISTRIBUTION SYSTEM
Team Members
Deepanker Koul (Team Co-ordinator)
Soumyadeep Dutta
Yadvender Singh
Anurag Gautam
Saurabh Vishnoi

2. What is PDS?
The Public Distribution System in India is an important
public intervention for enhancing food security. The PDS
provides subsidised food grains (other essential commodities)
through a network of “Fair Price Shops”. It is responsible for
the distribution of food grains/stocks procured by FCI at a
subsidised price to the deprived sections of the society. The
Public Distribution System of India is the largest network of
its kind in the world providing food to millions of deprived
people in India through a large chain of Fair Price Shops (or
simply the “Ration shops”). With over 4.3 lakh Fair Price
Shops, the Public Distribution System on one hand garners
great hopes of providing subsidised food to millions of
underprivileged Indians, it also poses an enormous challenge
to the policy makers with the huge sums of money involved
in various scams and inefficiencies of PDS systems.

3. PDS – The
Troubled
Guy
Adulteration INSUFFICIENT
PDS OUTLETS
Lack of Proper
Storage
Facility
Black
Marketing
Lack of Quality
Control
FpS owner’S
Commission
Problems
Unresolved
Non-
Following of
Prescribed
Norms
Highly
Inefficiency
Lack of Proper
Awareness
Failure to
Provide Proper
Nutrition

4. These Problems Lead to
 Widespread malnutrition due lack of proper nutritious food
 Lack of Proper Storage facility leads to tonnes of precious food grains
being wasted.
 Inefficiency of system leads to wastage of taxpayers money in form of
misused subsidies.
 Lack of proper commission to FPS owners forces them to resort to
malpractices.
 Lack of awareness of peoples’ rights leads to their abuse and rampant
corruption.
 Black Marketing of the food grains meant for Public Distribution leads to
false scarcity of grains which then further leads to Pseudo-Inflation.
 Lack of proper accountability has lead to people’s voices falling on deaf
ears.
 And the worse of all, people sleeping empty stomach even though food
for all is available in the country.

5. SOME OF THE QUICK FIXES AVAILABLE
NOW CAN BE
 Strictly following the guidelines laid by Commission for Agricultural Costs
& Pricing(CACP) for Minimum Support Prices(MSP) so as to tackle the
large influx of food grains into FCI storehouse thereby effectively tackling
inflation created by Govt!
 FCI should procure only a fixed predetermined amount of grains for
distribution as well as buffer stocks and allow rest to be sold in open
market, thereby reducing chances of a self created scarcity of grains in
open market.
 Food Grains stored by FCI should be distributed in stipulated amount of
time and expiry date for the consumption of food grains should be
indicated so as to ensure distribution of quality grains.
 Use of Bar Coded Food Stamp/Credit Cards linked with Aadhar Cards by
respective Govts should be encouraged in place of the older ration cards
so as to effectively weed out fake beneficiaries of various Govt. schemes.
 Include vegetables and milk in PDS system to effectively tackle
Malnutrition.(Such a provision can be made with the help of Food
Security Bill so as to increase its effectiveness.)

6. LONG TERM SOLUTIONS
 One of the long term solution for curing the ailing PDS system can be privatizing it on the
lines of Public Private Partnership(or PPP) model. Under this model the Fixed Price
Shops can be leased out to private firms experienced in running a chain of food
outlets/departmental stores so that the PDS can be revamped on modern lines. This can
improve the efficiency as well as weed out rampant corruption present in the PDS
system.
 Using technology for making the system more lucid and transparent.
 Instead of issuing “Ration” simply on the basis of number of people in a family “Ration”
should be issued according to the nutritional needs of the people after collecting proper
data.
 There should be an option of food to be issued at a number of shops/counters instead of
just one to increase competition.
 Fair Price Shops (FPS) should be allowed to sell commodities other than regular ration
(Rice, Wheat etc) so as to make some profit out of it. This can help to reduce the burden
of subsidy on the exchequer
 A part of money paid in Govt employment schemes such as MGNREGA in terms of food
credit coupons which can be later redeemed at Fair Price Shops.
 Although the number of fair price shops in India is a staggering 4.3 lakhs it is still
insufficient compared to bulk of population it has to cater. Thus it is important to
open/lease out more FPS so as to cater the growing need of an ever-growing population.
 The ownership of FPS should be given to people living nearby or a community
organisation like Gram panchayat etc. to make it more accountable

7. Strictly following MSP norms can help Govt to curb inflation a bit.
Also it can help in preventing the rapid change in the cropping
patter as experienced in the recent times(leading to a lot of other
problems on their own).
Keeping only an apt amount of buffer stocks can help in keeping the
open market more dynamic and hence the scarcity of food materials
as experienced can be curbed.
Using technology for identifying beneficiaries as well as in the
day to day working of the Public Distribution System can help
in weeding out fake consumers and also help to keep the
system going smoothly. Also a number of malpractices of FPS
owners can be curbed, thus helping people get what they
deserve - Pure Nutritious Food.
Using Bar Coded bags/containers while transferring food grains
can help in preventing black marketing and other malpractices
rampant in the trade.
IMPACT OF STEPS PROPOSED

9. BETTER PDS BETTER INDIA

10. References
 Tenth Five Year Plan, Planning Commission
 Eleventh Five Year Plan, Planning Commission
 „PDS System in India‟ Wikipedia article
 Articles from various newspaper and monthly
magazines.
 Justice Wadhwa PDS Report (GUJARAT), 2007
 Chhattisgarh Food Security Bill, 2007
 PDS in India, APCR Karnataka
APPENDIX