Food Security Act has revamped the Public Distribution System (PDS)

Disclaimer: Copyright infringement is not intended.

Context:  

PDS in India has led to improved food security since the National Food Security Act (NFSA) 2013 was implemented. 

READ ABOUT PDS IN  DETAIL IN THIS BLOG: 

https://www.iasgyan.in/blogs/public-distribution-system-an-analytical-overview

The issue of Food Leakage in Public Distribution System (PDS)

• There has been a high level of food leakage leading to a reduced percentage of grains released by the Food Corporation of India (FCI) reaching the consumers.
• According to National Sample Survey (NSS) data, in 2011-12, at the all-India level, leakages were at 41.7%. 

Arguments in favour of continuing with the PDS

• The main argument in favour of continuing with the PDS was that States that had undertaken PDS reforms had witnessed major improvements. 
• According to NSS data, before the act was implemented, PDS leakages were high at 41.7% in 2011-12.
• Between 2004-5 and 2011-12, several early reforming States saw a dramatic reduction in leakages: Bihar (from 91% to 24%), Chhattisgarh (from 52% to 9%) and Odisha (from 76% to 25%). 
• With the same package of PDS reforms being mandated by the NFSA 2013, there was hope that more States could improve.
• The NFSA had mandated that leakages to 22% in 2022-23.

How did Aadhar reduce Leakages?

• Aadhaar-based Biometric Authentication (ABBA) was intended to curb leakages in the Public Distribution System (PDS) by implementing biometric verification of beneficiaries. 
• Studies suggest that Aadhaar's impact on leakages was minimal. In Jharkhand, PDS leakages were already below 20% before ABBA's implementation. 
• Tamil Nadu's leakage rate increased from 12% in 2011-12 to 25% in 2022-23, despite the integration of Aadhaar. 
• A 2017 survey by NSS found that entitlements were nearly identical between offline and ABBA villages, with 94% offline and 93% in ABBA villages. 
• Minimal evidence of "ghost cards" was found, indicating the limited impact of Aadhaar on reducing leakages. 
• Aadhaar's introduction did not significantly affect PDS leakages, as prior reforms had already reduced leakages effectively. 

Challenges in the current system:  

Increasing Leakages: 

PDS leakages have increased in several states where PDS previously performed well. For example, Tamil Nadu's leakage rate rose from 12% in 2011-12 to 25% in 2022-23. 

Incomplete NFSA Coverage: 

• The National Food Security Act (NFSA) aims to cover 66% of the population. However, as of 2022-23, only 59% of the population was covered by PDS. 

• Although 70% of households accessed PDS, 10% were non-NFSA beneficiaries (Source: Financial Express, 2023). 

Limited portability of benefits: 

• Until recently, beneficiaries could only access their food grains from designated Fair Price Shops (FPS) in their home states. 
• Even after one nation one ration card scheme, portability issues persist. 

Technological Issues: 

Aadhaar-based biometric systems have not shown significant improvements in reducing PDS leakages, suggesting that technological interventions alone may not be effective. Recommendations:  

Way ahead

Expedite Census Completion: 

Complete the pending Census to include over 100 million people who may be excluded from the PDS. 

Improve Food Diversity: 

Enhance the PDS by including a wider range of nutritious food items, such as pulses and edible oils, to better meet dietary needs.

Grievance redressal mechanisms: 

Inbuilt grievance redressal mechanisms can be strengthened.

Strengthen Existing Systems: 

Focus on improving and reinforcing the current PDS infrastructure rather than relying solely on new technologies like eKYC, which may disrupt existing processes.

Cash transfers: 

Support for the poor may be shifted from a highly subsidised price policy to an income policy of cash transfers.

Important articles for reference

One Nation One Ration Card

https://www.iasgyan.in/daily-current-affairs/one-nation-one-ration-card-42

Targeted PDS

https://www.iasgyan.in/daily-current-affairs/targeted-public-distribution-system-tpds

Food corporation of India

https://www.iasgyan.in/daily-current-affairs/food-corporation-of-india-fci-11

Sources: 

https://www.thehindu.com/opinion/lead/the-food-security-act-has-revamped-the-pds/article68610659.ece#:~:text=The%20PDS%20is%20now%20a,National%20Rural%20Employment%20Guarantee%20Act.