An Overview of the Public Distribution System

Availability of food grains is a necessary but not passable condition to ensure food security to the poor. In addition to food availability, it is necessary that food accessibility is also ensured to the poor households. This can be done either by raising the level of incomes of these poor households or by providing them food grains at subsidized prices. Public Distribution System (PDS) is a way to ensure accessibility of food grains to these poor households. Public Distribution System (PDS) means distribution of essential commodities to a large number of people through a network of Fair Price Shops (FPS) on a recurring basis. In India, PDS evolved as a major instrument of the Government's economic policy for ensuring availability of foodgrains to the public at affordable prices as well as for enhancing the food security for the poor. It is an important constituent of the strategy for poverty eradication and is intended to serve as a safety net for the poor. PDS is operated under the joint responsibility of the Central and the State Governments. The Central Government has taken the responsibility for procurement, storage, transportation and bulk allocation of foodgrains, etc. The responsibility for distributing the same to the consumers through the network of Fair Price Shops (FPS) rests with the State Governments. The operational responsibilities including allocation within the State, identification of families below poverty line, issue of ration cards, supervision and monitoring the functioning of FPS rest with the State Governments. The present project will try to give an overview of the PDS system as it existed in the country. It would also look into the new system of Targeted Public Distribution System (TPDS) as has been introduced recently. The project would firstly outline the present poverty situation and the agricultural sector in India and then proceed to look at the effect of the PDS on the Indian economy as a whole. An effort will also be made to estimate the future benefits or losses that PDS might have on the Indian economy as a whole.