1.2. Evolution and Functioning of PDS

In India PDS is working since 1960s. It was initially a general entitlement scheme for all consumers without any target.

♤ In 1992, a Revamped PDS (RPDS) was launched in 1775 blocks throughout the country to strengthen and streamline the PDS as well as to improve its reach to poor families especially in the far-flung, hilly, remote and inaccessible areas. RPDS covered areas where special programmes were under operation such as Drought Prone Area Program (DPAP), Integrated tribal development program (ITDP), Desert Development Program (DDP), and certain Designated Hill Areas (DHA).

♤ In 1997, Targeted PDS (TPDS) was launched with focus on the poor families. It aimed to benefit 6 crore poor families for whom 7.2 MT foodgrains was earmarked annually. Over and above the TPDS allocation, ‘additional allocation’ was also given periodically to the states. This transitory allocation was to benefit APL population. But, this allocation was issued at higher prices than the ones at BPL quota.

♤ In December 2000, Antyodaya Anna Yojana (AAY) was introduced for poorest of the poor people (the hungry) and 25kg/month per household (increased to 35kg in 2002) was provided at the highly subsidised rate of Rs 2/kg of wheat and Rs 3/kg of rice. The scheme aimed to reach one crore Antyodaya households. Since then, AAY has undergone three phases of expansion and now covers 2.5 crore poorest of the poor people. In between 2003-2006, 3 expansions took place which included 1.5 crore people (38% of BPL) belonging to terminally ill, widows, senior citizens with no societal support, landless and marginal farmers, rickshaw pullers, rag pickers, primitive tribal groups, etc have been added to AAY.

♤ In 2013, National Food Security Act (NFSA) was enacted. It introduced individual entitlement of 5 kg per person per month foodgrains to around 82 crore of population.

The PDS seeks to provide to the beneficiaries two cereals, rice and wheat and four essential commodities viz. sugar, edible oil, soft coke and kerosene oil. However, state governments, which actually manage the system at the ground level, are exhorted to add other essential commodities like pulses, salt, candles, matchboxes, ordinary clothes, school text books/copies and the like. Supply of additional items through PDS is especially relevant in interior areas, which are away from markets and where one or two traditional shopkeepers, who also double up for money-lenders, have the market monopoly. A number of state governments have set up Civil Supplies or Essential Commodities Corporations to buy such additional items directly from the manufacturers and use the existing structure of PDS to arrange for the sale at lower than

market rates. Making available the six essential commodities (rice, wheat, sugar, edible oil, soft coke and kerosene oil) to the state government is the responsibility of the central government.

The PDS distributed commodities worth more than 98,000 crore in 2014-15 through 5.21 Lakh Fair Price Shops. Rice, wheat, sugar and kerosene have been the four major items of distribution under PDS. Other than them, edible oils, coal and cloth have also been distributed through it. Coarse grains (jowar, bajra, maize, etc) virtually remained absent from it as their combined sales have amounted to less than 1% of the total PDS sales. Pulses, which are an important source of protein for poor, constitute only about 0.2% in total PDS sales.