1.4.1. Key Features of TPDS

1. Targeting: Those earning a maximum of Rs. 15,000 per annum are kept within BPL. Initially 10 kg of food grains were provided per household per month, but in 2002 the limit was revised to 35 kg/household/month.

2. Dual Prices: In 2000, the Central Issue Prices for the PDS to state governments was set at 50% of the economic cost of FCI for BPL families and at 100% of the economic cost for APL

families. In 2001, a third price was also issued for beneficiaries of ANTYODAYA ANNA YOJANA (Rs 2/kg of wheat and Rs. 3/kg of rice per family under AAY).

3. Central-State Control: PDS is designed and managed by State Governments, while the Central Government allocates the foodgrains to the states. Under TPDS, the size of the BPL population and the entitlement for them is decided by the Central Government.