Sample Answer
Introduction
The Public Distribution system (PDS) includes procurement, storage, transportation and distribution of food grains at subsidised prices to implement National Food security Act.
Body
Challenges | Strategies (Shanta Kumar Committee, Eco Survey 2020-21, SC Committee on Farm Laws) |
Open ended procurement has led to surplus buffer stocks and hindered agricultural diversification | Adopt closed ended procurement policyLiquidate surplus buffer stocks through open market sales by FCI. |
Diversion of food grains during transportation. | GPS enabled tracking of Trucks (Delhi)Yellow coloured PDS trucks (Chhattisgarh) |
Inadequate storage capacity leading to rotting of grains | Increase storage capacity through PPPProvide 6 months ration immediately after procurement season. |
Distribution: Inclusion and exclusion errors, Leakages (46%), Lack of choice of food grains, Nutritional insecurity etc. | End-to-End Computerisation (Chhattisgarh)Seeding Aadhaar with ration cardsDBT for food subsidy (Chandigarh)One Nation One Ration CardFood Fortification |
Unsustainable Food Subsidy Bill (around Rs 2 lakh crores) | Reduce Coverage from 67% of population to 40%Pricing of Food grains for priority households should be linked to MSPCentral Issue Price (CIP) should be revised upwards |
Conclusion
The above strategies would bring about reforms leading to twin objectives of – Financial sustainability and enhanced food security through PDS.