Examine the major reforms undertaken in the Public Distribution System (PDS) in India. Have these reforms addressed its structural deficiencies?

The Public Distribution System (PDS) has undergone significant reforms over the past two decades to improve targeting, transparency and portability of foodgrain distribution. While these reforms have substantially enhanced the efficiency of the system, several structural deficiencies continue to affect its long-term sustainability.

Major Reforms in PDS:

• National Food Security Act (NFSA), 2013:
  • Converted food security into a legal entitlement by providing
  • Introduced uniform national coverage under the Targeted Public subsidised foodgrains to nearly 81.35 crore beneficiaries. Distribution System (TPDS).

End-to-End Digitisation:

• Digitisation of ration cards and supply chain.
• Aadhaar
• Reduced seeding and e-PoS machines to authenticate ration cards, improving beneficiaries. duplicate and ghost transparency.

One Nation One Ration Card (ONORC):

• Enabled nationwide portability of ration cards.
• Improved food security for migrant workers through access to subsidised foodgrains anywhere in the country.

Decentralised Procurement (DCP):

• Empowered states to undertake procurement, storage and
• Reduced procurement costs and encouraged procurement of distribution. locally consumed crops.
• Fortification of Rice: Distribution of fortified rice through PDS to address micronutrient deficiencies and improve nutritional security.

These reforms addressed structural deficiencies to a large extent:

• Digitisation and Aadhaar authentication have significantly reduced leakages and ghost beneficiaries.
• ONORC has addressed exclusion of migrant workers.
• Technology-driven monitoring has improved transparency and accountability.
• DCP has improved procurement efficiency in participating states.

However, major structural deficiencies persist:

• High fiscal burden: Rising MSP, procurement costs and free foodgrain distribution continue to increase food subsidy expenditure. In Budget 2025–26, the food subsidy allocation is about ₹2.03 lakh crore.
• Poor nutritional diversity: The food basket under PDS continues to be dominated by rice and wheat (over 95% of central procurement), with limited inclusion of protein-rich and micronutrient-rich foods such as pulses and millets. As a result, while PDS has largely addressed calorie deficiency, hidden hunger remains widespread. NFHS-5 (2019–21) reports that 57% of women (15–49 years) are anaemic.
• Weak Inventory Management: Procurement often exceeds buffer stocking norms, resulting in excessive carrying costs, storage losses and periodic liquidation through the Open Market Sale Scheme (OMSS).
• Market distortions: Large-scale procurement crowds out private trade and weakens competitive agricultural markets. Example, Punjab and Haryana procure more than 70–80% of their rice and wheat production under MSP, leaving limited scope for private traders and encouraging continued cultivation of these crops at the expense of diversification.
• Limited adoption of DCP: Only a few states have effectively implemented decentralised procurement due to inadequate procurement and storage infrastructure.
• Residual exclusion and inclusion errors: Authentication failures and outdated beneficiary databases continue to affect targeting in some regions.

The next generation of PDS reforms should shift the focus from merely distributing foodgrains to building a nutrition-sensitive, technology-driven and fiscally sustainable food security system that empowers beneficiaries while ensuring efficient use of public resources.