Q5. Review the contribution of the public distribution system in poverty alleviation.

The Public Distribution System (PDS) is a government-managed food security network designed to distribute essential food grains at subsidized prices to the weaker sections of society. It has evolved from a universal entitlement to a targeted system (TPDS) and is now legally mandated under the National Food Security Act (NFSA), 2013.

Contribution to Poverty Alleviation

• Ensuring Food Security: PDS provides a crucial safety net against hunger. By supplying subsidized grains (e.g., rice at Rs. 3/kg, wheat at Rs. 2/kg under NFSA) to nearly 80 crore beneficiaries, it ensures basic calorific intake, preventing starvation and acute malnutrition.
• Increasing Real Income: The subsidy on food grains acts as an income transfer. It frees up a portion of the household budget of the poor, which would otherwise be spent on food. This saved income can be diverted to other development needs like health, education, or asset creation.
• Price Stabilization: By releasing buffer stocks through PDS, the government prevents extreme price volatility in the open market, especially during droughts or floods. This protects the poor from food inflation, a major driver of poverty.
• Targeting the Poorest: The Antyodaya Anna Yojana (AAY) component within PDS specifically targets the “poorest of the poor” households, providing them with a higher quantity of grains (35 kg per family) at the same subsidized rate.
• COVID-19 Response: The PM Garib Kalyan Anna Yojana (PMGKAY), which provided additional free food grains, demonstrated the PDS’s critical role as a shock absorber, preventing millions from falling into extreme poverty during the pandemic.

Conclusion

Despite challenges like leakages and identification errors (now being tackled by Aadhaar-seeding and ‘One Nation One Ration Card’), the PDS is India’s most extensive social safety net. It directly alleviates poverty by ensuring access to food and stabilizing household budgets.