8.24 ndian onom
(i) There is entitlement feeding programmes public expenditure/subsidy on PDS reaches the
like the Integrated Child Development beneficiary. There is a case for introducing DBT
Scheme (ICDS – covers all Children (Direct Benefit Transfer) for consumers of food
under six, pregnant and lactating and kerosene as is under way in Andhra Pradesh.
mothers) Though, there are challenges in implementing
(ii) Mid Day Meal Schemes (MDMS), DBT.
(iii) Food subsidy programmes like the As per the Economic Survey 2016-17,
Targeted Public Distribution System despite increased procurement of food-grains
(through which the National Food offtakes from PDS have been declining in past
Security Act is being implemented) few years. This suggests that despite enhanced
availability in the PDS and high inflation in
(iv) Annapurna (10 kgs of free food grain for
foodgrains, dependence on the PDS is reducing
destitute poor) and the
– this could be only due to two reasons –
(v) Employment Programmes like Mahatma
(i) Foodgrains are not made available timely
Gandhi National Rural Employment
by the PDS, and/or
Guarantee Scheme (100 days of
employment at minimum wages) to (ii) Quality of the PDS foodgrains are inferior
ensure food security. in comparison to their counterparts in
the open market.
Till the vulnerable population is not enabled
with the market-linked purchasing capacity, these There are certain anomalies in India’s
programmes will be relevant in case ensuring food food management under the PDS which need
immediate attention –
security in the country. There is a need to run these
schemes with utmost focus of the beneficiaries. (i) The percentage distribution of the
economic cost of wheat and rice has been
Pds & Food suBsIdy rising fast. The pooled cost of foodgrains
(MSP plus the Bonus which are offered by
The Public Distribution System (PDS was changed the individual states) accounts for two-
to Targeted PDS in 1997) strives to ensure food thirds of the economic cost of wheat and
security through timely and affordable distribution rice. This has made the economic cost of
of foodgrains to the BPL population as this section foodgrains to the Food Corporation of
can not afford to pay market prices for their food. India (FCI) increase over the years.
This involves procurement of foodgrain at MSP by (ii) Increasing costs of labour, fertilizers,
the Government, building up and maintenance of pesticides and other inputs have made
food stocks, their storage, and timely distribution, production of crops costlier over the
making foodgrains accessible at reasonable prices time. This forced the government to keep
to the vulnerable sections of the population. on increasing the MSPs of the crops, too.
However, the system of PDS has many (iii) The increase in the food subsidy bill
weaknesses leading to leakages and targeted is determined by the rate at which the
beneficiaries being left out of the system. The MSPs for wheat and rice increase and
PDS incurs high costs for procurement, storage the economic cost of handling grains (their
and distribution of foodgrains. There is scope procurement, stocking and distribution
to increase efficiency of the PDS operations and to the targeted households). This has
reduce costs. Only a small proportion of the been the major factor for ballooning