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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.
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Ghost beneficiaries are people who are incorrectly identified as beneficiaries in a program or scheme.
- For example, Haryana identified 36.74 lakh "ghost" beneficiaries and saved ₹7k crore.
- The Aadhaar Direct Benefit Transfer Scheme aims to eliminate ghost beneficiaries by accurately identifying beneficiaries using Aadhaar as an identifier.
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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.
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PRACTICE QUESTION
Q) How far was the Aadhaar-based Biometric Authentication (ABBA) in the Public Distribution System (PDS) successful in reducing the Leakages and ghost beneficiaries from the Public Distribution System in India? Discuss the current challenges in the PDS system in India. (250 words)
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