Current Challenges in PDS

Leakages in PDS

Leakages refer to food grains not reaching intended beneficiaries.According to 2011 data, leakages in PDS were estimated to be 46.7%. Leakages may be of three types: (i) pilferage during transportation of food grains, (ii) diversion at fair price shops to non-beneficiaries, and (iii) exclusion of entitled beneficiaries from the list.

• In 2016, the Comptroller and Auditor General (CAG) found that states had not completed the process of identifying beneficiaries, and 49% of the beneficiaries were yet to be identified.It also noted that inclusion and exclusion errors had been reported in the beneficiary lists.
• In February 2017, the Government made it mandatory for beneficiaries under NFSA to use Aadhaar as proof of identification for receiving food grains.Through this, the government aims to remove bogus ration cards, check leakages and ensure better delivery of food grains. As of January 2017, while 100% ration cards had been digitised, the seeding of these cards with Aadhaar was at 73%.

Storage

As of 2016-17, the total storage capacity in the country is 788 lakh tonnes, of which 354 lakh tonnes is with the Food Corporation of India and 424 lakh tonnes is with the state agencies.

The CAG in its performance audit found that the available storage capacity in states was inadequate for the allocated quantity of food grains. For example, as of October 2015, of the 233 godowns sanctioned for construction in Maharashtra, only 93 had been completed.It also noted that in four of the last five years, the stock of food grains with the centre had been higher than the storage capacity available with Food Corporation of India.

Quality of Foodgrains

A survey conducted in 2011 had noted that people complained about receiving poor quality food grain which had to be mixed with other grains to be edible.There have also been complaints about people receiving food grains containing alien substances such as pebbles. Poor quality of food may impact the willingness of people to buy food from fair price shops, and may have an adverse impact on their health.