The Public Distribution system (PDS) includes procurement, storage, transportation and distribution of food grains at subsidised prices to implement National Food security Act.
|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|
The above strategies would bring about reforms leading to twin objectives of – Financial sustainability and enhanced food security through PDS.