What are the major challenges of Public Distribution System (PDS) in India? How can it be made effective and transparent?

The concept of Public Distribution System (PDS) in the country evolved during the 2nd World War (1942) due to the shortage of food grains. PDS has evolved as a system of management of scarcity and for distribution of food grains at affordable prices. PDS is incremental in nature and is not intended to make available the entire 

requirement of any of the commodities distributed under it. 

The PDS faces certain challenges mentioned below:

• Most of the states distribute only wheat and rice under PDS resulting in deficiency of nutrients among poor. 
• The food grains distributed under PDS lacks in quality. 
• Inadequate storage capacity with FCI leads to wastage of food grains. 
• Centralized procurement leads to transport of food grains from surplus states to deficit states leading to wastage of Govt.’s resources. 
• FCI’s procurement of only wheat and rice has distorted the cropping pattern 

Taking a cue from the recommendations of the Shanta Kumar Committee, it can be made more effective and transparent in the following ways:

• FCI should hand over the procurement operations to states. 
• The coverage of beneficiaries should be brought down from the present 67% to 40%. 
• FCI should outsource its stocking operations to private sector and other agencies. 
• Liquidation of stocks should automatically kick-in when FCI is faced with surplus stocks than buffer norms. 
• End to end computerization of the entire food management system, starting from procurement from farmers, to stocking, movement and finally distribution through TPDS

It’s time to introduce DBT in procurement and distribution of food grains and FCI should keep only a minimum level of buffer stock for food security purpose.