PDS and NFSA

Public Distribution System: What it is all about?

Imagine a country where a large section of the population struggles to afford two meals a day. In such a country, the government acts as a guardian—it buys food from the farmers and sells it to the poor at subsidized prices.

This system of distribution is known as the Public Distribution System (PDS).

It is one of the world’s largest food security systems and distributes key commodities like:

• Wheat
• Rice
• Sugar
• Kerosene

Some states also add items like:

• Pulses
• Edible oil
• Iodized salt

Evolution of PDS: From Universal to Targeted

The journey of PDS is important to understand how it transformed from a universal welfare scheme to a targeted legal right.

Year	Scheme	Key Idea
Pre-1992	General PDS	Open to all consumers, not targeted
1992	Revamped PDS (RPDS)	Focus shifted to poor in remote and hilly areas
1997	Targeted PDS (TPDS)	Introduced Fair Price Shops (FPS) and focused subsidies only to poor

Judicial Push: Right to Food as a Fundamental Right

In the landmark case of People’s Union for Civil Liberties vs. Union of India, the Supreme Court interpreted the Right to Food as a part of the Right to Life under Article 21.

This paved the way for a legal framework to ensure food security for all.

National Food Security Act (NFSA), 2013

NFSA converted food security from a welfare scheme into a legal right.

Key Features:

• Covers about two-thirds of India’s population:
  • 75% of rural
  • 50% of urban
• Uses the Targeted PDS (TPDS) as the main delivery mechanism
• Legal entitlements under NFSA:
  • 5 kg per person per month at subsidized rates:
    • Rice: ₹3/kg
    • Wheat: ₹2/kg
    • Coarse grains: ₹1/kg
  • Antyodaya Anna Yojana (AAY) households receive 35 kg per family per month
  • Pregnant women and lactating mothers: Maternity benefits and free cereals
  • Children: Mid-Day Meals and take-home rations under ICDS

How It Works: Allocation & Responsibilities

• Centre:
  • Procures food grains via FCI
  • Allocates food to states at Central Issue Price (CIP)
• States:
  • Identify beneficiaries (BPL, AAY)
  • Distribute ration cards
  • Operate and monitor Fair Price Shops

Why is PDS Important?

• Ensures affordable food to poor families
• Provides price support to farmers by procuring food at MSP/PP
• Helps stabilize prices during inflation or crises
• Acts as a safety net during droughts or food shortages

Challenges in PDS

Despite its noble intent, PDS faces structural and implementation issues:

Problem Area	Details
Leakages	Diversion of food grains into the black market
Identification errors	Many deserving poor excluded; fake cards in use
Poor service quality	Low-quality grains, irregular supply, corrupt FPS dealers
Rural-urban disparity	Urban poor often left out of effective coverage
Infrastructure issues	Unhygienic storage, transport losses, and uneven regional distribution

PDS Reforms and Technological Interventions

In recent years, major reforms have been undertaken to plug leakages and improve efficiency.

Key Measures:

• Digitized Ration Cards: Linked with Aadhaar to eliminate duplicates
• Point of Sale (PoS) Devices: Biometric authentication at FPS to ensure rightful beneficiary
• GPS Tracking: Monitors movement of food trucks to prevent diversion
• Direct Benefit Transfer (DBT): In some areas, cash is transferred instead of grains
• SMS Alerts & Citizen Monitoring: Transparency and public participation in oversight
• Online Grievance Redressal: Toll-free helplines and web portals for complaints

Conclusion

The Public Distribution System, strengthened by the NFSA, is not just about distributing food—it’s about distributing dignity, equity, and security.

But to fully realize its potential, continued reform, robust technology integration, and transparency are essential. PDS must evolve from a subsidy scheme into an efficient, accountable, and rights-based service delivery system.