Public Distribution System (India)

Four men at a table with microphones, water bottles and documents.
The Indian minister of agriculture Sharad Pawar meets representatives of the All India Fair Price Shop Dealer's Federation in 2004.

The Public Distribution System (PDS) is a food security system that was established by the Government of India under the Ministry of Consumer Affairs, Food and Public Distribution to distribute food and non-food items to India's poor at subsidised rates. Major commodities distributed include staple food grains, such as wheat, rice, sugar and essential fuels like kerosene, through a network of fair price shops (also known as ration shops) established in several states across the country. Food Corporation of India, a government-owned corporation, procures and maintains the PDS.

As of June 2022, India has the largest stock of grain in the world besides China, the government spends 750 billion.[citation needed] Food is procured from the net food surplus states, mainly from the smaller but richer states of Haryana and Punjab, which provide 70-90% of wheat & 28-44% of rice of India's Public Distribution System (PDS), which is then redistributed to other net negative producer states which produce less than what they consume.[1] Distribution of food grains to poor people throughout the country is managed by state governments.[2] As of 2011 there were 505,879 fair price shops (FPS) across India.[3] Under the PDS scheme, each family below the poverty line is eligible for 35 kg of rice or wheat every month, while a household above the poverty line is entitled to 15 kg of foodgrain on a monthly basis, redeemable with a card.[4] However, there are concerns about the efficiency of the distribution process.[further explanation needed]

In coverage and public expenditure, it is considered to be the most important food security network. However, the food grains supplied by the ration shops are enough to meet the consumption needs of the poor. In the 1980s and 1990s, the PDS was criticised for its urban bias and its failure to serve the poorer sections of the population effectively. The Targeted PDS is expensive and until the early 2000s there was a lot of corruption (i.e., people did not get all of what they were entitled to).[5]

  1. ^ Cite error: The named reference agrijh1 was invoked but never defined (see the help page).
  2. ^ "5.17 The Public Distribution System is -------" (PDF). Budget of India (2000-2001). 2000. Archived from the original (PDF) on 24 December 2010. Retrieved 27 February 2011.
  3. ^ "Number of Ration Shops in the Country".
  4. ^ "UP foodgrain scam trail leads to Nepal, Bangladesh". The Times of India. 11 December 2010. Archived from the original on 4 November 2012.
  5. ^ "Trends in Diversion of Grain from the Public Distribution System". 21 May 2011.