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PYQ 1200 Q/A Part - 1
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Kerala PSC Indian Economy Book Study Materials Page 218
Book's First Page8.24 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