Current Affairs 2024 - "Public Distribution System in India: A Lifeline in Need of Transformation"

• About:
  • Established to address food scarcity by distributing foodgrains at affordable prices.
  • Key tool for managing India’s food economy; supplements rather than fully meets beneficiaries' needs.
  • Governed by the National Food Security Act (NFSA), 2013, ensuring food security for two-thirds of India's population (Census 2011 data).
• Management:
  • Central Government: Oversees procurement, storage, transportation, and allocation through the Food Corporation of India (FCI).
  • State Governments: Handle distribution, identify beneficiaries, issue ration cards, and manage Fair Price Shops (FPSs).
  • PDS provides wheat, rice, sugar, and kerosene; some states also distribute pulses, edible oils, and salt.

1. Food Security & Poverty Alleviation:
   • Around 129 million Indians live on less than $2.15/day (World Bank, 2024).
   • Acts as a safety net, especially during economic shocks (e.g., PMGKAY during Covid-19 supported 800 million people).
2. Price Stabilization & Market Regulation:
   • Maintains buffer stocks, controls market volatility, and prevents price spikes.
   • Example: In 2022-23, 34.82 lakh tonnes of wheat were released to stabilize prices.
3. Support to Farmers:
   • Provides assured markets and MSP; supports livelihoods and food production.
   • Government procured 52.544 million tonnes of rice in 2023-24.
4. Nutritional Security:
   • Addresses malnutrition by including fortified items like pulses and millets (e.g., Tamil Nadu’s fortified rice initiative).
   • Contributed to reduced stunting (38.4% to 35.5%, NFHS-5).
5. Social Equity & Regional Balance:
   • Benefits marginalized communities and remote regions.
   • Initiatives like One Nation One Ration Card (ONORC) ensure portability for migrants.

1. Leakages and Diversion:
   • 28% of foodgrains diverted (19.69 MMT, HCES 2022-23).
   • Highest diversion rates in states like Arunachal Pradesh, Nagaland, and Gujarat.
2. Ghost Beneficiaries and Identity Fraud:
   • Despite Aadhaar linkage, issues like duplicate ration cards persist.
   • Over 47 million bogus cards canceled between 2013-2021.
3. Storage Losses & Quality Issues:
   • Poor storage infrastructure leads to losses (74 MT annually).
4. Targeting Errors:
   • Inclusion of non-poor and exclusion of genuine beneficiaries.
   • Coverage mismatch: While 12.9% live in poverty, PMGKAY covers 57%.
5. Corruption in Fair Price Shops:
   • Malpractices like under-weighing and overcharging persist.
   • Between 2018-2020, 19,410 actions taken against FPS operators.
6. Budget Constraints:
   • Rising food subsidy bills strain finances (₹2,05,250 crore in 2024-25).
7. Nutritional Gaps:
   • Focus remains on cereals; fails to address comprehensive nutritional needs.
   • Over 80% of adolescents experience "hidden hunger" (UNICEF).

Measures to Improve PDS

1. Digitalization & Real-Time Monitoring:
   • Use blockchain, IoT sensors, and AI for procurement-to-distribution tracking.
   • Integrate FCI godowns, vehicles, and FPS on a unified digital platform.
2. Smart FPS Transformation:
   • Biometric authentication, e-KYC updates, digital payments, and electronic weighing scales.
   • Implement QR-based quality certification and public dashboards.
3. Portable Benefits for Migrants:
   • Strengthen ONORC with interstate coordination and real-time migration tracking.
4. Storage Infrastructure Modernization:
   • Upgrade to modern silos with temperature control and IoT-enabled monitoring.
   • Adopt PPP models for storage infrastructure.
5. Focus on Nutrition:
   • Include pulses, oils, fortified products, and millets (e.g., Odisha’s Millets Mission).
   • Provide E-Rupee nutrition vouchers for vulnerable groups.
6. Emergency Preparedness:
   • Preposition stocks for disasters; deploy mobile PDS units during crises.

The Public Distribution System is crucial for achieving Sustainable Development Goals such as No Poverty (SDG 1), Zero Hunger (SDG 2), and Good Health and Well-being (SDG 3), and addressing issues like leakages, inefficiency, and nutritional gaps through targeted reforms can transform it into a more robust and equitable mechanism.

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