Public Distribution System in India: Meaning, Objectives and Evolution

PDS in the 1960s

• The public distribution of essential commodities was in existence in the country during the inter-war period. 
• However, PDS, with its focus on distribution of foodgrains in urban scarcity areas, had emanated from the critical food shortages of the 1960s. PDS had substantially contributed to the containment of rise in food grains prices and ensured access of food to urban consumers. As the national agricultural production had grown in the aftermath of the Green Revolution, the outreach of PDS was extended to tribal blocks and areas of high incidence of poverty in the 1970s and 1980s. 

Revamped Public Distribution System (RPDS), 1992

• The Revamped Public Distribution System was launched in June 1992.
• Its objective was to strengthen and streamline PDS and improve its reach in:
  • Far-flung areas
  • Hilly areas
  • Remote areas
  • Inaccessible areas
  • Areas where a large section of the poor lived
• It covered 1775 blocks wherein area specific programmes such as the Drought Prone Area Programme(DPAP), Integrated Tribal Development Projects (ITDP), Desert Development Programme (DDP) were being implemented and in certain Designated Hill Areas (DHA) which were identified in consultation with State Governments for special focus. 
• Under RPDS, foodgrains were issued to States at 50 paise below the Central Issue Price, and the scale of issue was up to 20 kg per card.
• The RPDS included area approach for ensuring effective reach of the PDS commodities, their delivery by State Governments at the doorstep of FPSs in the identified areas, additional ration cards to the left out families, infrastructure requirements like additional Fair Price Shops, storage capacity etc. and additional commodities such as tea, salt, pulses, soap, etc. for distribution through PDS outlets. 

Targeted Public Distribution System (TPDS), 1997

• 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 Fair Price Shop(FPS) level.
• The scheme, when introduced, was intended to benefit about 6 crore poor families for whom a quantity of about 72 lakh tonnes of food grains was earmarked annually. 
• The identification of the poor under the scheme was done by the States as per State-wise poverty estimates of the Planning Commission for 1993-94 based on the methodology of the “Expert Group on estimation of proportion and number of poor” chaired by Late Prof Lakdawala. 
• The allocation of food grains to the States/UTs was made on the basis of average consumption in the past i.e. average annual off-take of food grains under the PDS during the past ten years at the time of introduction of TPDS.
• Under the TPDS, the end retail price was fixed by the States/UTs after taking into account margin for wholesalers/ retailers, transportation charges, levies local taxes etc. 
  • The States were earlier requested to issue food-grains at a difference of not more than 50 paise per kg over and above the CIP(Central Issue Price) for BPL families. However, since 2001, flexibility was given to States/UTs in the matter of fixing the retail issue prices by removing the restriction of 50 paise per kg over and above the CIP for distribution of food grains under TPDS. 

Antyodaya Anna Yojana (AAY), 2000

• • Antyodaya Anna Yojana was launched in December 2000 to make TPDS more focused on the poorest of the poor.
  • It was based on the recognition that a section of the population remained extremely food insecure. 

• Objective of AAY

• • • The aim of AAY was to reduce hunger among the poorest segments of the BPL population.
  • AAY involved identification of one crore poorest of the poor families from amongst the number of BPL families covered under TPDS within the States and providing them food grains at a highly subsidized rate of Rs.2/- per kg. for wheat and Rs.3/- per kg for rice. 
    • The States/UTs were required to bear the distribution cost, including margin to dealers and retailers as well as the transportation cost. Thus the entire food subsidy was passed on to the consumers under the scheme. 
  • The scale of issue that was initially 25 kg per family per month was increased to 35 kg per family per month with effect from 1st April 2002. 
  • The scheme was later expanded to cover 2.50 crore poorest of the poor households.

• AAY was expanded in phases.

• • First Expansion
    • In 2003–04, another 50 lakh BPL households were added.
    • This included households headed by:
      • Widows
      • Terminally ill persons
      • Disabled persons
      • Persons aged 60 years or more with no assured means of subsistence or societal support
  • Second Expansion
    • In 2004, another 50 lakh BPL families were added.
    • The categories included:
      • Landless agricultural labourers
      • Marginal farmers
      • Rural artisans and craftsmen
      • Slum dwellers
      • Daily wage earners in informal sector
      • Porters, coolies, rickshaw pullers and hand-cart pullers
      • Fruit and flower sellers
      • Snake charmers
      • Rag pickers
      • Cobblers
      • Destitute persons
      • Households headed by widows, disabled persons, terminally ill persons or elderly persons without support
      • Single women or single men without family or societal support
      • Primitive tribal households
  • Third Expansion
    • In 2005–06, AAY was expanded by another 50 lakh BPL households, increasing coverage to 2.5 crore households.