PAPER-IV GS-III: Technology, Economic Development, Biodiversity, Environment, Security and Disaster Management

Public Distribution System – Objectives, Functioning, Limitations, Revamping; Issues of Buffer Stocks and Food Security

In News: The Food Security Act has revamped the PDS

Discuss the impact of National Food Security Act (NFSA) 2013 on Public Distribution System (PDS) leakages. Also suggest measures to make PDS more effective.

According to National Sample Survey (NSS) data, in 2011-12,Public Distribution System (PDS) leakages were at 41.7% at the all-India level. The National Food Security Act (NFSA) 2013 aimed to reform the PDS by expanding its coverage and reducing leakages.

Impact of NFSA 2013 on PDS leakages:

1. Major reforms included in the NFSA 2013 was an expansion of PDS coverage aimed at reducing exclusion errors.This had a spillover effect on reducing leakages. NSS’s Household Consumption Expenditure Survey suggests that PDS leakages were down to 22% in 2022-23.
2. Before the NFSA, in 2011-12, less than 50% of households had ration cards and only about 40% received PDS benefits.But after NFSA, according to HCES data, in 2022-23, the proportion of households buying from the PDS has increased further to 70%
3. Reduction in PDS prices, doorstep delivery of foodgrains, digitisation of records, deprivatising management of PDS outlets by handing them over to panchayats, and self-help groups have helped to reduce PDS leakages.

However,

1. There is a shortfall in NFSA leakages: It is still below the NFSA mandate of covering 66% of the population (50% rural and 75% urban).Administrative data shows only 59% access the PDS as NFSA beneficiaries.
2. PDS leakage estimates are likely underreported as they don’t account for State contributions, which support non-NFSA beneficiaries.
3. While the NFSA expanded coverage, it may not have addressed underlying inefficiencies in the distribution systems  i.e., corruption by government officials or retailers, lack of proper inventory management and quality control, inefficient transportation and storage infrastructure.
4. The delayed Census, that is leading to the exclusion of over 100 million people. 
5. Inclusion of more nutritious items such as pulses and edible oil remain relevant.

To address these issues, it is necessary to implement comprehensive reforms that focus on improving the efficiency of the distribution system.

1. Regular Audits and Monitoring: Conducting regular audits of the PDS can help identify leakages and inefficiencies, allowing for timely corrective measures.
2. End-to-End Computerization: Implement complete digitization of PDS operations to improve transparency and reduce leakages..
3. One Nation One Ration Card: Facilitate portability of ration cards across states, allowing beneficiaries to access food grains anywhere in the country.
4. Include Nutritious Food: Ensure that the PDS provides nutritious food items, such as fortified grains, pulses, and vegetables, to address malnutrition.
5. Community Participation: Involve local self-help groups and community organisations in the management and monitoring of PDS operations.
6. Quality Control: Ensure the regular supply of good-quality grains and commodities at FPS to maintain trust and reliability.
7. Public Grievance Mechanism: Establish robust grievance redressal systems to address issues faced by beneficiaries promptly.
8. Training and Capacity Building: Provide training for FPS operators to improve service delivery and operational efficiency.

By addressing these issues and implementing these measures, the PDS can become more efficient and effective, ultimately ensuring food security for the vulnerable populations in India.

Source:https://www.thehindu.com/opinion/lead/the-food-security-act-has-revamped-the-pds/article68610659.ece