Public Distribution System (PDS) – Long Answer Questions
Medium Level (Application & Explanation)
Q1. Trace the evolution of the Public Distribution System (PDS) in India and explain why it became targeted over time.
Answer:
- The PDS began with universal coverage.
- There was no difference between the poor and non-poor.
- In 1992, the Revamped PDS (RPDS) started for remote and backward areas.
- In 1997, the Targeted PDS (TPDS) began to focus on the poor.
- Special schemes followed, like AAY (2002) for the poorest of the poor and APS (2000) for indigent senior citizens.
- In 2013, the NFSA made food a legal right for priority households with fixed low prices.
- Targeting grew to ensure limited resources reach those most in need.
Q2. Explain the main contributions of PDS to the Indian economy and society.
Answer:
- PDS helps stabilize food prices during shortages.
- It prevents hunger and famine by moving food from surplus to deficit areas.
- It offers food security to the poor through subsidized prices.
- It supports farmers by ensuring procurement and a stable market.
- It encourages food grain production due to assured off-take.
- It builds public trust that basic food will be available and affordable.
- Thus, PDS acts as a safety net for both producers and consumers.
Q3. Compare TPDS (1997) and NFSA (2013) in terms of coverage, quantity, and price.
Answer:
- TPDS (1997) covered poor and non-poor, but gave 35 kg/month for BPL families.
- Prices under TPDS were Wheat – Rs 4.15/kg and Rice – Rs 5.65/kg.
- NFSA (2013) covers priority households with 5 kg per person/month.
- NFSA prices are Wheat – Rs 2/kg, Rice – Rs 3/kg, Coarse grains – Rs 1/kg.
- TPDS focused on household quantity, NFSA on per person quantity.
- NFSA made prices lower and rights-based, broadening food security.
- Thus, NFSA reduced costs and improved legal access.
Q4. Describe the Antyodaya Anna Yojana (AAY) and explain how it supports the poorest families.
Answer:
- AAY is for the poorest of the poor families.
- At launch, it offered 25 kg of food grains per month at subsidized rates.
- In 2002, this was increased to 35 kg per household per month.
- The price was kept very low: Wheat – Rs 2/kg and Rice – Rs 3/kg.
- AAY ensures food security even for families with no steady income.
- It reduces the risk of hunger and malnutrition for the most vulnerable.
- Hence, AAY acts as a lifeline for the poorest households.
Q5. What is a subsidy and how does it work within the PDS framework?
Answer:
- A subsidy is money given by the government to producers.
- It helps lower prices for consumers.
- In PDS, it keeps wheat, rice, and coarse grains affordable.
- Producers get a stable income, so they are willing to produce more.
- Consumers pay less, so they can buy enough food.
- This maintains food security and price stability.
- Thus, a subsidy benefits both sides of the market.
High Complexity (Analysis & Scenario-Based)
Q6. Using the 2020–21 stock data, analyze what it means when actual stocks stay above buffer norms throughout the year.
Answer:
- In all months, actual stocks were above buffer norms.
- Example: July had 900.45 million tonnes vs 411.2 million tonnes norm.
- This shows strong procurement and adequate availability.
- It lowers the risk of shortages and helps stabilize prices.
- But it can cause overflow in FCI godowns if off-take is slow.
- Excess stock may rot or be eaten by rats if storage is weak.
- So, high stock is good for security, but needs better storage and movement.
Q7. Scenario: A family of 5 is listed as a priority household under NFSA. If they take only wheat, calculate their monthly entitlement and total cost. Comment on affordability.
Answer:
- Under NFSA, they get 5 kg per person per month.
- For 5 members, entitlement is 25 kg per month.
- If they take only wheat, the price is Rs 2 per kg.
- Their monthly cost = 25 kg × Rs 2 = Rs 50.
- This is highly affordable for a low-income family.
- It ensures basic food security at a very low cost.
- Thus, NFSA makes staple food accessible and budget-friendly.
Q8. Scenario: Compare the monthly grain entitlement of a 4-member family under NFSA with an AAY household. Who gets more and why?
Answer:
- A 4-member NFSA family gets 5 kg × 4 = 20 kg/month.
- An AAY household gets 35 kg per household per month.
- Therefore, AAY gives more grain than NFSA in this case.
- Prices are also subsidized in both: Wheat – Rs 2/kg, Rice – Rs 3/kg.
- AAY targets the poorest of the poor, so quantity is higher.
- NFSA targets priority households, so quantity is per person.
- Hence, AAY ensures greater coverage for the most vulnerable.
Q9. The FCI granaries were overflowing and some grain was lost. Using the given information, explain the causes and suggest two focused remedies.
Answer:
- Stocks were above buffer norms in all months.
- This led to overflow in FCI godowns.
- Some grain rotted or was eaten by rats due to storage issues.
- Cause: High production and slow movement to deficit areas.
- Remedy 1: Faster distribution through PDS to needy regions.
- Remedy 2: Improve storage to prevent spoilage and pest loss.
- These steps match PDS goals of moving surplus to deficit and saving grains.
Q10. Do you think targeted schemes like TPDS, AAY, and APS are better than universal PDS? Justify with benefits and possible risks.
Answer:
- Universal PDS is simple and covers everyone.
- But it can spread resources thin and include the non-poor.
- TPDS, AAY, and APS focus on those most in need.
- They give higher quantity or lower prices to vulnerable groups.
- Risk: Some poor may be left out if identification is weak.
- Benefit: Better use of funds and stronger support for the poorest.
- So, targeted schemes work well if coverage and delivery are accurate.