Revamped Public Distribution System and Targeted Public Distribution System in India

Introduction

Food security is a critical issue for India, a country with a population exceeding 1.4 billion, where a significant proportion lives below the poverty line. Ensuring access to affordable food for all sections of society has been a longstanding policy challenge. To address this, India established the Public Distribution System (PDS), a government-run network for supplying essential commodities like rice, wheat, sugar, and kerosene at subsidized rates.

Over the years, the PDS has undergone multiple reforms to improve efficiency, reduce leakages, and target the most vulnerable populations. Two major reforms stand out:

1. Revamped Public Distribution System (RPDS) – Introduced in 1992 to improve the coverage of PDS in underserved areas, particularly in remote and tribal regions.
   
   
2. Targeted Public Distribution System (TPDS) – Launched in 1997 to rationalize subsidies and prioritize benefits for Below Poverty Line (BPL) households.

This article explores the concept, objectives, implementation, challenges, and impacts of RPDS and TPDS in India, providing a complete understanding for educational purposes.

Historical Background of Public Distribution System

The PDS in India has its origins in the Second World War when food shortages prompted rationing measures. Key milestones in the evolution of PDS include:

1. 1947–1960s: Early Rationing
   • Initially introduced to manage food shortages after independence.
   • Rationing was limited to urban areas.
     
     
2. 1970s: Universal PDS
   • The system expanded to cover essential commodities for all, irrespective of income.
   • India faced frequent food crises, prompting the grain procurement and storage policy.
     
     
3. 1980s: Expansion to Rural Areas
   • PDS coverage increased in rural and tribal regions.
   • Subsidies on food grains aimed to enhance food security for vulnerable populations.
     
     
4. 1990s: Revamped Public Distribution System (RPDS)
   • Focused on improving access to PDS in remote, tribal, and hilly regions.
     
     
5. 1997: Targeted Public Distribution System (TPDS)
   • Introduced to target subsidies more effectively to poor households while reducing waste and leakages.

Thus, RPDS and TPDS represent key reforms in India’s journey toward achieving food security.

Revamped Public Distribution System (RPDS)

1. Overview

The Revamped Public Distribution System (RPDS) was launched in April 1992 as a centrally sponsored scheme by the Government of India. It aimed to strengthen the PDS network in remote, tribal, and underserved areas, including hilly regions and desert districts. RPDS sought to ensure that poor populations in these areas had access to essential commodities at subsidized rates.

2. Objectives of RPDS

The main objectives of RPDS include:

1. Ensuring Food Security in Remote Areas
   • Targeting regions with inadequate access to PDS outlets.
   • Improving availability of essential commodities like rice, wheat, sugar, and kerosene.
     
     
2. Strengthening PDS Infrastructure
   • Increasing the number of fair price shops (FPS) in rural and tribal areas.
   • Enhancing storage and transport facilities for grains.
     
     
3. Reducing Regional Disparities
   • Bridging the gap in food accessibility between urban and remote rural areas.
     
     
4. Improving Efficiency and Transparency
   • Monitoring stock movement and distribution to reduce leakages and diversion.

3. Coverage and Implementation

• RPDS initially covered areas with high tribal populations, hilly regions, and desert districts.
  
  
• Food grains were supplied through Fair Price Shops (FPS) managed by state governments under central guidelines.
  
  
• Subsidized food grains were allocated to households based on per capita norms.

4. Features of RPDS

1. Centralized Procurement – The Food Corporation of India (FCI) procured grains centrally and distributed them to states.
   
   
2. Targeted Coverage of Remote Areas – Focused on populations not adequately served by the general PDS.
   
   
3. Subsidized Prices – Food grains were sold at prices lower than market rates.
   
   
4. Centrally Sponsored Scheme – Funding shared between central and state governments.

5. Achievements of RPDS

• Expanded PDS coverage to previously unserved areas.
• Improved accessibility of essential commodities in tribal and remote regions.
• Strengthened infrastructure for storage and distribution of food grains.

6. Challenges of RPDS

1. Leakages and Diversion – Significant portion of subsidized grains was diverted to the open market.
   
   
2. Limited Coverage – Though remote areas were targeted, many poor households were still outside the scheme.
   
   
3. Administrative Inefficiency – Ineffective monitoring and accountability led to irregularities.
   
   
4. Dependency on Central Procurement – States faced difficulties in managing timely supply and transportation.

The RPDS laid the groundwork for further reforms aimed at targeting subsidies more effectively, leading to the introduction of TPDS in 1997.

Targeted Public Distribution System (TPDS)

1. Overview

The Targeted Public Distribution System (TPDS) was introduced on 1 June 1997 by the Government of India. Unlike RPDS, which focused on geographic coverage, TPDS introduced a socio-economic targeting mechanism to prioritize subsidies for Below Poverty Line (BPL) households, while Above Poverty Line (APL) households received limited support.

TPDS is a centrally sponsored program implemented by state governments, with FCI managing procurement and allocation of grains.

2. Objectives of TPDS

The main objectives include:

1. Targeting Subsidies to the Poor
   • Ensuring that limited resources reach the most needy sections of society.
     
     
2. Reducing Leakages in Food Distribution
   • By focusing on BPL households, TPDS aimed to minimize diversion of subsidized grains.
     
     
3. Enhancing Transparency and Accountability
   • Improved monitoring of FPS, distribution, and stock management.
     
     
4. Improving Nutritional Security
   • Ensuring adequate food supply to vulnerable groups such as women, children, and the elderly.
     
     
5. Reducing Regional and Social Inequalities
   • Providing equitable access to food grains across states and socio-economic groups.

3. Coverage and Classification

TPDS classifies households into three categories:

1. BPL (Below Poverty Line)
   • Households officially identified as below poverty line are entitled to subsidized food grains.
     
     
2. APL (Above Poverty Line)
   • Households above the poverty line may receive limited quantities at higher subsidized prices.
     
     
3. Antyodaya Anna Yojana (AAY)
   • Launched in 2000 as part of TPDS, this scheme targets the poorest of the poor, providing highly subsidized grains.

4. Features of TPDS

1. Socio-Economic Targeting – Identification of BPL households using poverty surveys and state-specific criteria.
   
   
2. Differential Pricing – Prices for BPL, APL, and AAY households are distinct.
   
   
3. Centralized Procurement and Allocation – FCI manages procurement; state governments handle allocation to FPS.
   
   
4. Monitoring and Transparency – Introduction of computerized ration cards and monitoring mechanisms to reduce leakages.
   
   
5. Nutritional Focus – Prioritizes food access for vulnerable groups, including women and children.

5. Implementation

• The central government allocates food grains to states based on poverty estimates and coverage requirements.
  
  
• State governments identify eligible households and distribute grains through FPS.
  
  
• Ration cards are issued to eligible families for entitlements.
  
  
• Modernization efforts, including digital ration cards, smart card-based distribution, and GPS tracking, have been implemented in recent years.

6. Achievements of TPDS

1. Focused Subsidy Delivery – BPL households received better access to food grains.
   
   
2. Introduction of Antyodaya Anna Yojana (AAY) – Ensured food security for the poorest families.
   
   
3. Improved Targeting Mechanisms – Socio-economic identification allowed better allocation of resources.
   
   
4. Reduction in Leakages (Partial) – Digital tracking and monitoring improved accountability.

7. Challenges of TPDS

Despite reforms, TPDS faces several challenges:

1. Leakages and Diversion – Food grains are still often diverted to the open market.
   
   
2. Identification Errors – Exclusion of deserving BPL households and inclusion of non-poor families due to flawed surveys.
   
   
3. Quality Issues – Poor quality of grains and delays in supply in some regions.
   
   
4. Infrastructure Gaps – Storage and transport facilities remain inadequate in some remote areas.
   
   
5. Administrative Inefficiency – Corruption and lack of transparency in some states.

RPDS vs TPDS: Key Differences

Recent Developments in PDS

1. Digital and Smart Card-based PDS – Integration of biometric authentication for beneficiaries.
   
   
2. Direct Benefit Transfer (DBT) – Some states experiment with transferring subsidy directly to beneficiaries’ bank accounts.
   
   
3. Grain Quality and Fortification – Efforts to improve nutritional value of distributed grains.
   
   
4. Integration with Food Security Act, 2013 – TPDS is now part of the National Food Security Act, guaranteeing subsidized food grains to 75% rural and 50% urban population.

Impact on Food Security

• RPDS and TPDS have significantly expanded access to subsidized food grains.
  
  
• TPDS ensures efficient targeting of subsidies, especially for vulnerable populations.
  
  
• However, challenges such as exclusion errors, leakages, and administrative inefficiencies remain.
  
  
• Recent digitization efforts and integration with the NFSA have improved accountability and coverage.

Conclusion

The Revamped Public Distribution System (RPDS) and the Targeted Public Distribution System (TPDS) are key components of India’s strategy to achieve food security.

• RPDS focused on geographic expansion, bringing food grains to remote, tribal, and underserved areas.
  
  
• TPDS introduced socio-economic targeting, prioritizing BPL households and addressing subsidy inefficiencies.

Both systems laid the foundation for a more inclusive, transparent, and accountable PDS, which continues to evolve with digitization and integration with the National Food Security Act, 2013. While challenges remain in terms of leakages, infrastructure, and proper targeting, RPDS and TPDS have been instrumental in improving food security, reducing hunger, and protecting the most vulnerable populations in India.