BS EDIT: Is the food distribution system delivering on its promise?

By Business StandardPublished On Nov 18, 2024

A vast network serving millions

India’s PDS provides free foodgrain to 813 million under NFSA via 500,000 fair-price shops, but dependency on government support remains high

Evolving yet inefficient

Overhauled in 2013, PDS covers 67 per cent of the population, but 28 per cent of grain still misses beneficiaries, costing Rs 69,108 crore annually

Growing burden of subsidies

Despite a Rs 2.05 trillion food-subsidy bill, inefficiencies persist, raising concerns about the long-term sustainability of the subsidy model

Addressing nutritional gaps

PDS fails on nutrition: 30 per cent of children are underweight, and 15 per cent of adults have low BMI. The system needs reorientation for better support

Time for policy rethink

Declining poverty calls for reassessing PDS scope; cash transfers may reduce leakages and improve efficiency in resource allocation

The path forward

India’s food security programme needs reform; fewer beneficiaries and cash transfers may improve effectiveness and ensure a sustainable system