Q3 · UPSC Civil Services Mains 2022 · GS III · 10 marks · 2 min read

← Q14 Q12 →

What are the major challenges of Public Distribution System (PDS) in India ? How can it be made effective and transparent ?

Topic: Farm Subsidies and PDS. Syllabus: Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System — objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing. Same official PYQ from year-wise 2022 and Farm Subsidies and PDS.

Revision summary

PDS under NFSA 2013 is a legal grain entitlement, not a discretionary dole. Main challenges are wrong lists, diversion, poor quality, weak last-mile shops, and a rice-wheat nutrition gap. Migrants lose access when the card is locked to one State. Effectiveness needs computerised supply chains, e-PoS, One Nation One Ration Card, social audits, and exception rules when biometrics fail. DBT can complement urban PDS; it is a poor substitute where food markets are thin.

Model answer

Copper italics in this answer — like this — are the key facts. Each one is unpacked in the Facts & figures rail.

Introduction

The Public Distribution System (PDS) is the State’s grain pipeline from the Food Corporation of India and State agencies to the ration shop. Under the National Food Security Act, 2013 it is a legal entitlement for a large share of households. Leakage, exclusion and poor quality have dogged it for decades. Reforms now run through Aadhaar, digitised records and, in some States, One Nation One Ration Card.

Body

Major challenges

  • Inclusion and exclusion errors: deserving households missing from the list; better-off names remaining. Migration breaks the old State-bound ration card.
  • Leakage and diversion: grain siphoned between the godown and the shop; ghost cards; under-weighing at the counter.
  • Quality and nutrition: wheat and rice dominate; coarse grains, pulses and oil are uneven; storage pests and moisture spoil stocks.
  • Last-mile shop: irregular hours, poor weighing, and a dealer who is also a local power-holder.
  • Fiscal and logistics load: high economic cost of procurement, carrying and storage; yet the poor still face out-of-pocket if the shop is shut.
  • Intra-household and gender: the card is often in a male name; women and the aged may not actually receive the grain.

Making PDS effective and transparent

  • End-to-end computerisation: digitised beneficiary lists, electronic weighing, and GPS or e-PoS at the fair-price shop so off-take matches Aadhaar authentication.
  • One Nation One Ration Card so a migrant can lift grain in the destination State against the same entitlement.
  • Grievance and social audit: recorded complaints, display of stock, and panchayat or urban ward audits; the NFSA already requires transparency machinery.
  • Cover the genuinely poor: use Socio-Economic Caste Census-type lists with periodic revision; do not punish a failed biometric with a starved month—keep an exception protocol.
  • Diversify the basket where fiscally possible (millets, pulses) and improve scientific storage to cut wastage.
  • Direct Benefit Transfer of the food subsidy is an option in some urban settings; it should not replace physical grain where markets are thin or prices spike.

Balance

  • Technology cuts ghost cards. It does not by itself put grain in a remote hamlet. Effectiveness is stock plus shop plus list, not a portal alone.

Flow diagram

Flow diagram

Conclusion

PDS fails when lists are wrong, grain is diverted, and shops are unaccountable. NFSA 2013 made food a right; digitisation, One Nation One Ration Card, social audit and a nutrition-wider basket are how that right becomes a transparent monthly lift. Biometrics must aid the entitled, not lock them out.

Quick related

Students also ask

Same topic · past papers

UPSC has asked this before

These previous-year questions sit on the same topic. Open one to practise the earlier ask.

  1. 2019 · Q13 · GS III · 15 marks

    What are the reformative steps taken by the Government to make food grain distribution system more effective?

    View answer →

  2. 2018 · Q2 · GS III · 10 marks

    Comment on the important changes introduced in respect of the Long term Capital Gains Tax (LCGT) and Dividend Distribution Tax (DDT) in the Union Budget for 2018-2019. (150 Words, 10 Marks).

    View answer →

  3. 2025 · Q19 · GS III · 15 marks

    What are the major challenges to internal security and peace process in the North-Eastern States? Map the various peace accords and agreements initiated by the government in the past decade.

    View answer →

  4. 2024 · Q13 · GS III · 15 marks

    What are the major challenges faced by Indian irrigation system in recent times? State the measures taken by the government for efficient irrigation management.

    View answer →

More from this topic

Q14 · UPSC Mains 2024 · GS III · 15 marks · Solution

Elucidate the importance of buffer stocks for stabilizing agricultural prices in India. What are the challenges associated with the storage of buffer stock? Discuss.

Farm Subsidies and PDS

Buffer stocks buy rice and wheat at MSP so harvest prices do not crash, and release them through PDS and open sale so retail prices do not spike. FCI and State agencies hold the central cereal pool; a Price Stabilisation Fund is used for some pulses and perishables. Storage challenges: CAP exposure, rodents and fungus, high carrying cost, and stocks piled in a few surplus States. A rice-wheat mountain does not automatically cool onion or tur inflation. Silos, WDRA warehouses and a wider commodity set are the storage reforms that match the price-stability claim.

Q14 · UPSC Mains 2023 · GS III · 15 marks · Solution

What are the direct and indirect subsidies provided to farm sector in India? Discuss the issues raised by the World Trade Organization(WTP) in relation to agricultural subsidies.

Farm Subsidies and PDS

Direct subsidies include fertiliser, power, irrigation, crop-loan subvention, PM-KISAN and insurance premium support. Indirect subsidies include MSP, public procurement, food subsidy, and cheap public research and seed. WTO Amber Box covers trade-distorting price and input support, with 10 per cent de minimis for developing countries. Green Box is uncapped if genuinely non-distorting; Blue Box is production-limiting payments. The peace clause protects public stockholding from disputes pending a permanent solution.

Q12 · UPSC Mains 2022 · GS III · 15 marks · Solution

Do you think India will meet 50 percent of its energy needs from renewable energy by 2030 ? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective ? Explain.

Farm Subsidies and PDS

Panchamrit targets 50 per cent of installed electric capacity from non-fossil sources by 2030, including hydro and nuclear. That is not 50 per cent of energy needs, and not even 50 per cent of electricity generation, because solar and wind have lower capacity factors. Half of all energy from renewables by 2030 is unlikely given oil and industrial coal. The capacity target is more plausible if transmission, storage and discom health improve. Shifting subsidies from fossils to renewables and storage helps relative prices and manufacturing; social fuels need targeted DBT, not a blunt cut.

PDF