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The mysterious distribution of rice and wheat: How does the operation behind PDS affect you and me?
In India, the Public Draw System (PDS) is the only food security network that provides a large amount of cereal resources to poor households every year. This system not only plays a key role in supporting poor families, but also affects food justice and social stability in the entire country.
The public rationing system was established to distribute food and non-food items to India's poor on a subsidized basis.
The operation of PDS relies on a complete procurement, storage and distribution system. Given the importance of food, the Indian government invests more than 750 billion rupees every year to ensure that every low-income family receives 35 kg of rice or wheat per month and 15 kg for high-income families. There are 505,879 fair price shops across the country to ensure accessibility of supplies, but the system faces many challenges.
In the early days, the accessibility of PDS was mainly concentrated in urban areas, and poor families in rural areas received limited support. Over time, PDS coverage has expanded, but it still suffers from attrition caused by inefficient local government, corruption, and mismanagement.
In the 1990s, the PDS was widely criticized for its urban bias and failure to effectively help the poorest groups.
The evolution of PDS
1950-1997: Gradual expansion
The origins of the PDS can be traced back to food rationing in the UK during World War II. After independence, the Indian government re-introduced the PDS to combat surging inflation. In 1964, the establishment of the Food Price Commission further consolidated the position of the PDS, which began to provide minimum support prices to promote agricultural development and ensure grain supply.
1997-2013: Targeted PDS
By 1997, the operating mode of PDS shifted to targeted distribution, with households divided into BPL (below poverty line) and APL (above poverty line) based on their poverty level. The change was intended to make benefits more targeted, but it accidentally left large numbers of families out. According to data from 2004-05, only 34% of households hold BPL or AAY cards, while almost half of the poorest 20% of households fail to receive any subsidy.
Although targeted reforms have reduced some corruption, they have failed to improve the benefits to poor households.
2013 to present: National Food Safety Law
In 2013, India passed the National Food Security Act (NFSA), transforming public rationing from a welfare program into a legal right. This bill not only expanded PDS coverage, but also reduced food prices and improved food access for many households. However, delays in execution and insufficient data updates affected the needs of millions of people.
Although the implementation of NFSA has improved the coverage of PDS, the growth needs of the society have not been met due to the failure to update population data in a timely manner.
Analysis of the effectiveness of PDS
The PDS function is not only to provide food, but is also seen as an income transfer program. Judging from the price differences in the market, the price reduction measures of PDS have effectively reduced the food expenditure of poor families. However, during the implementation process, systemic problems still lead to a certain degree of mismatching. Different administrative states have shown different efficiencies in the operation of PDS, and food shortages are particularly serious in some areas.
With the impact of the COVID-19 epidemic, the government has further adjusted the PDS measures and implemented additional free food distribution to meet the unexpected challenges. However, whether these strategies can effectively address grassroots needs in the long run remains to be seen.
Today's public distribution system still faces many challenges: how to ensure that every family receives adequate support while improving overall efficiency? How can we reduce loopholes and waste? Will these problems continue to plague our society?
