Subject: Economy

The Public Distribution System (PDS), India's largest food security program, faces multifaceted challenges despite serving as a crucial social safety net for millions. According to an ICRIER report, about 28% of food grains are diverted, causing an annual loss of ₹69,000 crore.

Major Challenges of PDS

1. Leakages and Diversion

• Ghost Beneficiaries: Approximately 20 million tonnes of rice and wheat meant for 814 million people are diverted to open markets or exported.
• State-wise Variations: States like Arunachal Pradesh, Nagaland, and Gujarat show highest leakage rates, while Bihar and West Bengal demonstrate improvement.

2. Identification and Targeting Issues

• Outdated beneficiary databases leading to exclusion errors.
• Complex data collection and verification processes.
• Multiple data sources causing inconsistencies in beneficiary lists.

3. Infrastructure and Storage Problems

• Inadequate storage facilities leading to grain wastage.
• Poor last-mile connectivity affecting distribution.
• Limited technological integration at Fair Price Shops (FPS).

Making PDS Effective and Transparent

1. Technological Integration

• Implementation of Aadhaar-based biometric authentication.
• Usage of e-PoS devices for real-time tracking.
• Integration with End-to-End Computerization of PDS operations.

2. Policy Reforms

• NFSA 2024 Amendment focusing on micronutrient specifications.
• Enhanced provisions under Section 31 for remote area coverage.
• Regular updating of beneficiary databases through door-to-door surveys.

3. Monitoring and Accountability

• Setting up vigilance committees at various levels.
• Implementation of grievance redressal mechanisms.
• Regular social audits and community participation.

The transformation of PDS requires a multi-pronged approach combining technological solutions with policy reforms. Success stories like Direct Benefit Transfer (DBT) in food subsidy and One Nation One Ration Card (ONORC) demonstrate the potential for creating an efficient and transparent food security system in India.