Skip to content
GK24
GK NotesIndian EconomyFood Security and the Public Distribution System

Food Security and the Public Distribution System in India

Exam notes on food security: the growth of the PDS, RPDS, TPDS and Antyodaya, minimum support price, the FCI and the National Food Security Act, 2013.

By · Published · 5 min read

Food Security and the Public Distribution System in India — GK24 title card
Food Security and the Public Distribution System in India — GK24 title card

Food security means that every person has, at all times, physical and economic access to enough food for an active and healthy life. Economists break the idea into three parts: availability, which is the food produced in the country plus imports and stocks; accessibility, which is whether the food reaches the person where he lives; and affordability, which is whether he can pay for it. India's answer to all three is one of the largest food programmes in the world, resting on a price support system that buys grain from the farmer and a public distribution system that sells it cheap to the poor. The Constitution points the way in Article 47, which makes it the duty of the State to raise the level of nutrition and the standard of living, and the Supreme Court has read the right to food into the right to life under Article 21.

How the Public Distribution System grew

StageYearWhat changed
Wartime rationing1939 onwardsRationing introduced in Bombay and other cities during the Second World War and continued after the Bengal famine
Universal PDS1960s onwardsGrain sold through fair price shops to anyone holding a ration card, with no income test
Revamped PDS1992Extended with better terms to 1,775 blocks in drought-prone, desert, tribal and hill areas
Targeted PDS1997Households split into Below Poverty Line and Above Poverty Line, with different prices and quotas
Antyodaya Anna Yojana2000The poorest of the poor given grain at the lowest price; the quota became 35 kg a family a month in 2002
National Food Security Act2013The entitlement made a legal right instead of a scheme benefit
One Nation One Ration Card2019 onwardsPortability, so a cardholder can draw his quota from any fair price shop in the country

The machinery behind the ration shop

The system begins with the minimum support price. The Commission for Agricultural Costs and Prices, set up in 1965 as the Agricultural Prices Commission and renamed in 1985, recommends a minimum support price for twenty-two mandated crops, and a fair and remunerative price for sugarcane is fixed separately; the Union Government takes the final decision. The Food Corporation of India, established in 1965 under the Food Corporations Act of 1964, together with state agencies, buys wheat and rice at that price, so the farmer is assured a floor and the state gets its stock. Under the decentralised procurement scheme introduced in 1997 a state may buy, store and distribute grain itself, which cuts transport cost and waste. The grain so bought becomes two things: the operational stock needed to run the distribution system month by month, and the buffer stock held against a bad harvest, whose norms the Government fixes for each quarter. Surplus grain is sold to traders and bulk users through the open market sale scheme, which also helps cool open market prices. At the end of the chain stand the fair price shops, now almost all fitted with electronic point of sale machines that authenticate the cardholder, usually by fingerprint against the Aadhaar number, before the grain is weighed out.

The National Food Security Act, 2013

The Act of 2013 turned a scheme into a right, and its provisions are the most examined part of this chapter.

  • Coverage: up to 75 per cent of the rural population and up to 50 per cent of the urban population, which works out to about two-thirds of the country.
  • Priority households receive 5 kg of foodgrain per person per month.
  • Antyodaya Anna Yojana households continue to receive 35 kg per household per month.
  • Issue prices were fixed at three rupees a kilogram for rice, two rupees for wheat and one rupee for coarse grains.
  • The eldest woman of the household, aged eighteen or above, is treated as the head of the household for the purpose of the ration card.
  • Pregnant women and lactating mothers get a free meal and a maternity benefit of not less than six thousand rupees; children get meals through the anganwadi and the school.
  • If the entitled grain is not supplied, the beneficiary is entitled to a food security allowance from the state.
  • Grievances are heard by a District Grievance Redressal Officer and by a State Food Commission.

From the start of 2023 the grain due under the Act has been given free of cost, and the arrangement was extended for five years from 1 January 2024 under the Pradhan Mantri Garib Kalyan Anna Yojana.

Nutrition, not only calories

Grain alone does not end malnutrition, so the food security system is supported by a group of nutrition programmes. The school meal scheme, long called the Mid-Day Meal Scheme and renamed PM POSHAN in 2021, feeds children in government and aided schools. The Integrated Child Development Services runs the anganwadi, which reaches children under six, pregnant women and nursing mothers. POSHAN Abhiyaan, launched in 2018, sets targets for reducing stunting, under-nutrition and anaemia and tries to make the departments work together. Rice fortified with iron, folic acid and vitamin B12 is now supplied through the distribution system and the school meal to attack anaemia directly.

What goes wrong, and the proposed cures

Three faults are discussed in every examination answer. The first is leakage: grain diverted on the way from the warehouse to the shop, or drawn against ghost cards. The second is targeting error, of two kinds, the exclusion of a poor household that holds no card and the inclusion of one that is not poor. The third is the cost and the distortion: open-ended procurement at a rising support price in a few surplus states encourages rice and wheat at the expense of pulses and millets, drains groundwater, and fills warehouses beyond the buffer norms while the food subsidy grows. The High Level Committee on restructuring the Food Corporation of India, chaired by Shanta Kumar, reported in 2015 and suggested narrowing the coverage of the Act, moving towards cash transfers where the beneficiary prefers them, and handing procurement to the states. Against that, the digital reforms already in place, the end-to-end computerisation of the system, the electronic point of sale machine, Aadhaar authentication and the portability of the ration card, have cut leakage without taking the grain away.

Exam Point of View

Most questions come from the National Food Security Act, 2013. Learn its year, the coverage of seventy-five and fifty per cent, the two entitlements of five kilograms a person and thirty-five kilograms a household, the issue prices of three, two and one rupee, the eldest woman as the head of the household and the maternity benefit of six thousand rupees. The second cluster is the chronology, where the examiner asks which year brought the Revamped PDS, the Targeted PDS and the Antyodaya Anna Yojana, so fix 1992, 1997 and 2000 in that order. The third cluster is institutional: the Food Corporation of India in 1965, the Commission for Agricultural Costs and Prices and who actually announces the support price, and the Shanta Kumar Committee of 2015. The commonest trap is to offer thirty-five kilograms a household as the priority entitlement, and the second commonest is to shuffle the three issue prices.

Important Facts

Food securityAvailability, accessibility and affordability of food at all times
Directive Principle on nutritionArticle 47 of the Constitution
Revamped Public Distribution System1992; 1,775 blocks in drought-prone, desert, tribal and hill areas
Targeted Public Distribution System1997; Below and Above Poverty Line categories
Antyodaya Anna YojanaDecember 2000; one crore poorest households; 35 kg a household a month from 2002
Food Corporation of IndiaSet up in 1965 under the Food Corporations Act, 1964
Minimum support price recommended byCommission for Agricultural Costs and Prices, set up 1965, renamed 1985
Crops under MSP22 mandated crops; sugarcane gets a fair and remunerative price
National Food Security Act2013; coverage up to 75 per cent rural and 50 per cent urban
Priority household entitlement5 kg of foodgrain per person per month
Antyodaya household entitlement35 kg of foodgrain per household per month
Issue prices in the ActRice three rupees, wheat two rupees, coarse grains one rupee a kilogram
Head of household for the ration cardThe eldest woman aged eighteen or above
Maternity benefit under the ActNot less than six thousand rupees
Committee on restructuring the FCIHigh Level Committee chaired by Shanta Kumar, 2015
School meal schemeMid-Day Meal Scheme, renamed PM POSHAN in 2021

Practice MCQs on this topic

Q1.Indian EconomyEasy

The National Food Security Act was enacted in which year?

  1. A.2005
  2. B.2009
  3. C.2013
  4. D.2016
Show answer
Correct answer: C. 2013

Explanation

The correct answer is C, 2013. The National Food Security Act, often called the Right to Food Act, was passed by Parliament in 2013 and converted the subsidised grain of the Targeted Public Distribution System from a scheme benefit into a legal entitlement, enforceable through a District Grievance Redressal Officer and a State Food Commission. A, 2005, is wrong, though it is the year of two other landmark laws, the Right to Information Act and the National Rural Employment Guarantee Act, which is why the option is attractive. B, 2009, is wrong because the year belongs to the Right of Children to Free and Compulsory Education Act. D, 2016, is wrong; no central food security law dates from that year, which saw the Insolvency and Bankruptcy Code instead. Note too that the Act was brought into force with effect from July 2013, which is why some sources give that month with the year.

Q2.Indian EconomyMedium

Under the National Food Security Act, 2013, a priority household is entitled to how much foodgrain?

  1. A.5 kg per person per month
  2. B.35 kg per household per month
  3. C.10 kg per person per month
  4. D.25 kg per household per month
Show answer
Correct answer: A. 5 kg per person per month

Explanation

The correct answer is A, 5 kg per person per month. The Act creates two categories of beneficiary. A priority household receives five kilograms of foodgrain for every member every month, so a family of five draws twenty-five kilograms. B, 35 kg per household per month, is the standing trap: that is the quantity for an Antyodaya Anna Yojana household, which is a household entitlement and does not change with the number of members. C, 10 kg per person per month, is wrong because no category under the Act carries that scale, although ten kilograms a family was the original quota of the Targeted Public Distribution System in 1997. D, 25 kg per household per month, is wrong, though it was the Antyodaya quota when the scheme began in 2000, before it was raised to thirty-five kilograms in 2002. So read the unit in each option carefully: per person in one case and per household in the other.

Q3.Indian EconomyMedium

What proportion of the population does the National Food Security Act, 2013 aim to cover?

  1. A.50 per cent of the rural and 25 per cent of the urban population
  2. B.Up to 75 per cent of the rural and up to 50 per cent of the urban population
  3. C.All households below the poverty line only
  4. D.The entire population without any exclusion
Show answer
Correct answer: B. Up to 75 per cent of the rural and up to 50 per cent of the urban population

Explanation

The correct answer is B, up to 75 per cent of the rural and up to 50 per cent of the urban population. Those two ceilings together work out to about two-thirds of the country, and the Union Government fixes the state-wise coverage within them while the states identify the households. A is wrong because the figures are reversed and reduced; no provision of the Act carries fifty and twenty-five per cent. C is wrong because the Act deliberately moved away from the poverty line as the test: the priority category is wider than the old Below Poverty Line list, and identification is left to state criteria rather than to a poverty estimate. D is wrong because the Act is not universal; it excludes a part of the population, and a universal distribution system is what India had before the targeting of 1997.

Q4.Indian EconomyMedium

Under the National Food Security Act, 2013, who is treated as the head of the household for the purpose of the ration card?

  1. A.The eldest male member of the household
  2. B.The eldest woman of the household aged eighteen or above
  3. C.The member with the highest income
  4. D.Any adult member nominated by the gram panchayat
Show answer
Correct answer: B. The eldest woman of the household aged eighteen or above

Explanation

The correct answer is B, the eldest woman of the household aged eighteen or above. The Act provides that the ration card shall be issued in the name of the eldest woman of the household who is eighteen years of age or more, so that the entitlement is held by a woman; if there is no such woman, the eldest male member holds it until a female member turns eighteen. A is wrong because the eldest male is only the fallback and not the rule. C is wrong because income decides whether the household is covered at all, not who holds the card. D is wrong because the gram panchayat has a role in identification, social audit and vigilance but no power to nominate the head of a household for this purpose.

Q5.Indian EconomyHard

The issue prices fixed by the National Food Security Act, 2013 for rice, wheat and coarse grains were, in rupees per kilogram,

  1. A.1, 2 and 3
  2. B.2, 3 and 1
  3. C.3, 2 and 1
  4. D.5, 3 and 2
Show answer
Correct answer: C. 3, 2 and 1

Explanation

The correct answer is C, 3, 2 and 1. The Act fixed the issue price at three rupees a kilogram for rice, two rupees for wheat and one rupee for coarse grains, and provided that these prices would hold for three years from the date of commencement, after which the Central Government could revise them up to the minimum support price. A and B are wrong because they shuffle the same three figures, which is exactly how the option is set in examinations; remember the descending order, rice the dearest and coarse grain the cheapest. D is wrong because those are not statutory figures at all. From the start of 2023 the grain due under the Act has in practice been supplied free, but the prices written into the Act remain three, two and one.

Q6.Indian EconomyMedium

The Antyodaya Anna Yojana, meant for the poorest of the poor, was launched in which year?

  1. A.1992
  2. B.1997
  3. C.2000
  4. D.2013
Show answer
Correct answer: C. 2000

Explanation

The correct answer is C, 2000. The Antyodaya Anna Yojana was launched in December 2000 for one crore of the poorest households, which were given foodgrain at the lowest issue price; the quota was twenty-five kilograms a household a month at first and was raised to thirty-five kilograms in 2002. A, 1992, is wrong because that is the year of the Revamped Public Distribution System, which extended better terms to 1,775 blocks in drought-prone, desert, tribal and hill areas. B, 1997, is wrong because that is the year the Targeted Public Distribution System divided households into Below and Above Poverty Line. D, 2013, is wrong because that is the year of the National Food Security Act, which kept the Antyodaya category and its thirty-five kilogram entitlement intact. So fix the three years in order: 1992, 1997 and 2000, and this question becomes automatic.

Q7.Indian EconomyMedium

The Food Corporation of India was set up in which year?

  1. A.1955
  2. B.1965
  3. C.1972
  4. D.1985
Show answer
Correct answer: B. 1965

Explanation

The correct answer is B, 1965. The Food Corporation of India was established in 1965 under the Food Corporations Act of 1964, in the years of acute shortage that preceded the Green Revolution, to procure foodgrain at the support price, store it, move it across the country and issue it to the distribution system. A, 1955, is wrong, although it is the year of the Essential Commodities Act, under which the government regulates the supply and price of essential goods. C, 1972, is wrong; no body of this kind dates from that year. D, 1985, is wrong, but it is a real date in this chapter for another reason: the Agricultural Prices Commission, which had been set up in 1965, was renamed the Commission for Agricultural Costs and Prices in 1985. So remember 1964 for the Act and 1965 for the Corporation itself.

Q8.Indian EconomyEasy

The minimum support price of a crop in India is recommended by

  1. A.the Food Corporation of India
  2. B.the Commission for Agricultural Costs and Prices
  3. C.the Reserve Bank of India
  4. D.the National Statistical Office
Show answer
Correct answer: B. the Commission for Agricultural Costs and Prices

Explanation

The correct answer is B, the Commission for Agricultural Costs and Prices. The Commission, set up in 1965 as the Agricultural Prices Commission and renamed in 1985, recommends the minimum support price for twenty-two mandated crops after weighing the cost of production, demand and supply, price trends and the terms of trade; the Cabinet Committee on Economic Affairs takes the final decision, so the Commission only advises. A is wrong because the Food Corporation of India is the agency that buys at the announced price, stores and distributes; it does not fix the price. C is wrong because the Reserve Bank of India is the monetary authority and has no role in crop prices. D is wrong because the National Statistical Office collects and publishes statistics, including crop estimates, but recommends no price.

Q9.Indian EconomyHard

Which Article of the Constitution makes it the duty of the State to raise the level of nutrition and the standard of living of its people?

  1. A.Article 21
  2. B.Article 39
  3. C.Article 47
  4. D.Article 51A
Show answer
Correct answer: C. Article 47

Explanation

The correct answer is C, Article 47. Article 47, a Directive Principle of State Policy, declares that the State shall regard the raising of the level of nutrition and of the standard of living of its people and the improvement of public health as among its primary duties, and the same Article speaks of prohibiting intoxicating drinks and drugs that are injurious to health. A, Article 21, is a strong distractor because the Supreme Court has read the right to food into the right to life it guarantees, but Article 21 does not itself speak of nutrition. B, Article 39, is wrong; it directs the State to secure an adequate means of livelihood and to prevent the concentration of wealth. D, Article 51A, is wrong because it lists the Fundamental Duties of citizens.

Q10.Indian EconomyHard

The Targeted Public Distribution System, which divided households into Below Poverty Line and Above Poverty Line, was introduced in

  1. A.1992
  2. B.1997
  3. C.2000
  4. D.2002
Show answer
Correct answer: B. 1997

Explanation

The correct answer is B, 1997. The Targeted Public Distribution System was introduced in June 1997. Until then the distribution system was universal, open to any cardholder; from 1997 households were classified as Below or Above the Poverty Line and given different quotas at different prices, with the poorer group receiving a larger subsidy. A, 1992, is wrong because that is the year of the Revamped Public Distribution System, which was an area-based and not a household-based change. C, 2000, is wrong because that is the year the Antyodaya Anna Yojana added a third and poorest category. D, 2002, is wrong, although it is the year in which the monthly quota of a Below Poverty Line and an Antyodaya household was raised to thirty-five kilograms. Note also that 1992 was an area-based change and 1997 a household-based one, which is the surest way to keep the two apart.

Q11.Indian EconomyHard

The High Level Committee that recommended the restructuring of the Food Corporation of India in 2015 was chaired by

  1. A.Shanta Kumar
  2. B.Bimal Jalan
  3. C.M. S. Swaminathan
  4. D.Raghuram Rajan
Show answer
Correct answer: A. Shanta Kumar

Explanation

The correct answer is A, Shanta Kumar. The High Level Committee on restructuring the Food Corporation of India, chaired by Shanta Kumar, reported in 2015. It suggested narrowing the coverage of the National Food Security Act, offering cash transfers in place of grain where beneficiaries prefer them, handing procurement to the states under the decentralised scheme, and reforming the Corporation's storage and movement. B is wrong because Bimal Jalan is associated with committees on the Reserve Bank's economic capital framework and on expenditure management. C is wrong because M. S. Swaminathan chaired the National Commission on Farmers, whose recommendation on a support price fifty per cent above the cost of production is a separate and often confused item. D is wrong because Raghuram Rajan chaired a committee on an index for measuring the backwardness of states.

Q12.Indian EconomyMedium

The maternity benefit provided to a pregnant woman under the National Food Security Act, 2013 is

  1. A.not less than three thousand rupees
  2. B.not less than five thousand rupees
  3. C.not less than six thousand rupees
  4. D.not less than ten thousand rupees
Show answer
Correct answer: C. not less than six thousand rupees

Explanation

The correct answer is C, not less than six thousand rupees. Besides a free meal through the local anganwadi during pregnancy and for six months after childbirth, the Act entitles every pregnant woman and lactating mother to a maternity benefit of not less than six thousand rupees, paid in instalments; women already receiving a similar benefit as government employees are excluded. A, three thousand rupees, is wrong, though candidates often recall it because the amount is paid in instalments and the first instalments are smaller. B, five thousand rupees, is wrong and is simply a plausible round figure placed to tempt a guess. D, ten thousand rupees, is wrong because no provision of the Act fixes that sum; the floor written into the Act is six thousand rupees. Note also that the benefit does not cover women already drawing a similar payment under their service conditions.

Frequently Asked Questions

What is the difference between a priority household and an Antyodaya household?

A priority household under the National Food Security Act receives five kilograms of foodgrain for each member every month, so its quota rises with the size of the family. An Antyodaya Anna Yojana household, which is among the poorest, receives thirty-five kilograms a month for the household as a whole, whatever its size. The Antyodaya category existed before the Act, from December 2000, and the Act kept it unchanged.

Who fixes the minimum support price in India?

The Commission for Agricultural Costs and Prices recommends it, after examining the cost of production, demand and supply, price trends, the terms of trade and the likely effect on the consumer. The decision is taken by the Union Government through the Cabinet Committee on Economic Affairs, so the Commission advises and the Government announces.

What is a buffer stock and why is it held?

A buffer stock is the foodgrain the Government holds over and above what the distribution system needs month by month. It is kept so that the country can meet a shortfall caused by a failed monsoon or a natural calamity, run relief operations, and release grain into the open market to check a sharp rise in prices. The Government fixes the buffer norms for each quarter of the year.

What is One Nation One Ration Card?

It is the nationwide portability of the ration card. A beneficiary registered anywhere in the country can draw his entitlement from any fair price shop in any state, using biometric authentication against the Aadhaar number on an electronic point of sale machine. It matters most to migrant workers, who earlier lost their entitlement when they left home.

What are the main criticisms of the public distribution system?

Three are standard. Leakage, where grain is diverted between the warehouse and the shop or drawn against bogus cards. Targeting errors, which both exclude poor households that hold no card and include households that are not poor. And the cost and distortion of open-ended procurement, which favours rice and wheat over pulses and millets, draws down groundwater in a few states and raises the food subsidy.

Sources

View all