What is public distribution system?how was …

Ans. Public Distribution System is a government-sponsored chain of shops entrusted with the work of distributing basic food and non-food commodities to the needy sections of the society at very cheap prices.

Wheat, rice, kerosene, sugar, etc. are a few major commodities distributed by the public distribution system.

FoodCorporation of India, a government entity, manages the public distribution system. 

PDS has been criticized because of the following:

• Market ineffectiveness of PDS : Average consumption of PDS grain at all India level is only 1 kg per person per month. Average consumption figure in the states of Bihar, Orissa and Uttar Pradesh is only 300 gms, while in states like Kerala, Karnataka, Tamil Nadu this figure is 3-4 kg per person per month. As a result, the poor has to depend on markets rather than ration shops.
• With the introduction of three types of cards and three different prices for the same articles to the different people, the whole system of Public Distribution System has become much complicated.
• PDS dealers engage in malpractice: The ration shop dealers resort to malpractices indulging in hoarding, black marketing. They divert the grains to the open market to get a better margin.