How PDS System Function?
The functions of the PDS System are as follows:
- The PDS is administered under the joint responsibility of the central and state/Utah governments.
- The Central Government is responsible for providing food grains for CBT through the Food Corporation of India and providing subsidies for their use.
- The State is responsible for ensuring that beneficiaries have access to items sold under the PDS, coordinating the entire supply process from the FCI warehouse to the beneficiary, and monitoring the PDS. We support PDS products through FPS.
- FPS licensing and enforcement methods through vigilance boards and other government officials are detailed in the PDS Control Directive 2001 (GOI 2001) issued by the Ministry of Food and Public Distribution of the Government of India.
- FCI purchases food grains from farmers at a Minimum Supporting Price (MSP) and distributes food grains to all states at a single Central Selling Price (CIP).
- CIP is lower than the economic cost of the central government to buy food.
- The difference between the economic cost and the CIP is the food subsidy generated by the central government from the annual unplanned budget.
- The states set their final consumer price (CEP) at an FPS of 0.50 real per kilogram or less above the central selling price (CIP), especially for populations below the poverty line.
- States may also add coverage based on BPL categories and pay subsidies from their own resources.
- Operational responsibilities, including intrastate distribution, identification of eligible families, issuance of distribution cards, and oversight of Fair Price Stores (FPS) rest with the State.
What is Public Distribution System?
The Public Distribution System (PDS) is India’s food security system, which has evolved into affordable food distribution and emergency management system. Distribute food and nonfood items that subsidize the poor in India. The project began in June 1947. Over the years, PDSs have become an important part of the country’s government food control policies. PDSs are complementary in nature and are not intended to satisfy the needs of any household or part of the community for the goods distributed accordingly. PDS has helped establish socio-economic equity by alleviating hunger, malnutrition, and anemia among the poorest of the poor, BPL citizens, women, and children. Using ICT to reduce contact points further increases the efficiency of PDS.
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