IAS Gyan

Daily News Analysis

Targeted Public Distribution System (TPDS)  

28th July, 2021 Economy

Context:

  • Government has taken Action against 19410 cases taken in 3 years under Targeted Public Distribution System (TPDS) across the country.

About TPDS:

Background:

  • In June, 1997, the Government of India launched the Targeted Public Distribution System (TPDS)with focus on the poor.
  • Under the PDS, States were required to formulate and implement foolproof arrangements for identification of the poor for delivery of foodgrains and for its distribution in a transparent and accountable manner at the FPS level.

Implementation of the Scheme:

  • Each poor family is entitled to 10 kilograms of food grains per month (20 kg wef April 2000) at specially subsidised prices.
  • This is likely to benefit about six crore poor families, to whom a quantity of about 72 lakh tonnes of food grains per year is earmarked.
  • The identification of the beneficiaries is done by the States, based on state-wise poverty estimates of the Planning Commission.
  • The thrust is to limit the benefit to the truly poor and vulnerable sections: landless agricultural labourers, marginal farmers, rural artisans/craftsmen, potters, tappers, weavers, blacksmiths, and carpenters in the rural areas.

Objectives of the Programme:

  • The objectives of the Targeted Public Distribution System (TPDS)  aims at providing food security to poor and vulnerable people.
  • It also provides subsidized fuel for household use in cooking and lighting.
  • It is the largest food distribution programme in the world—which alone accounts for 34 per cent of all cardholders in our sample.

Coverage:

  • After the National Food Security Act (NFSA) rollout nationwide, administrative data suggests that, by 2017, Targeted Public Distribution System (TPDS) is expected to yield subsidized food to 813.4 million persons, or 190 million households (74.13% of all households in the country). 

Programme Expenditure:

  • Food subsidies: INR145,338.60 crore (1 crore = 10 million) (budget estimates for the 2017-18 fiscal year);
  • Kerosene subsidies amounted to INR8923.87 crore (budget estimates for the 2017-18 fiscal year) .
  • Total for the FY 2017-18: INR154,262.47 crore.