ineffectiveness of PDS is the major limitation of the PDS. explain.
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1) The main objective of PDS, at least when it started and was universal, was to ensure that the poor in our country, who lack purchasing power to buy enough food to quench their hunger, are able to purchase at least rice and wheat through ration shops at cheap prices. It was also meant to protect the public at large from higher prices of rice, wheat and coarse cereals or pulses (in some states) by supplying these at lower-than-market prices to any consumer having a ration card. The scheme was universal when it started, but was then targeted in 1993 because of our fiscal situation in 1991 and the promises we made to World Bank in return for obtaining funds from it, and because of the idea that the system should only be meant for the poor and not for the rich who have the capacity to pay higher prices.
2) The second objective was something which came up as the outcome of the Green Revolution: increased productivity of food crops (rice and wheat). Such increased productivity meant that while demand had not increased greatly, supply had increased sharply thanks to introduction of fertilizers, high-yielding varieties of seeds and other scientific practices within our rural hinterland, particularly in North and West India. Increase in production would have led to a fall in prices of crops with not much increase in demand, which would have been catastrophic for our farmers. Hence, the government had also introduced the policy of Minimum Support Price at which rice and wheat would be procured from our farmers by the Food Corporation of India (FCI), which started in 1965. The idea behind all this was that grains procured through FCI would be distributed through ration shops for the general public at subsidized rates, while buffer stocks would be maintained for ensuring enough availability at times of drought and floods for the affected populations. And thus, national food security would be ensured. Also, the food could be used for Mid-Day Meal Schemes and Integrated Child Development Scheme (ICDS).
Thus a combination of food security and security of incomes for farmers would be ensured through PDS.
2) The second objective was something which came up as the outcome of the Green Revolution: increased productivity of food crops (rice and wheat). Such increased productivity meant that while demand had not increased greatly, supply had increased sharply thanks to introduction of fertilizers, high-yielding varieties of seeds and other scientific practices within our rural hinterland, particularly in North and West India. Increase in production would have led to a fall in prices of crops with not much increase in demand, which would have been catastrophic for our farmers. Hence, the government had also introduced the policy of Minimum Support Price at which rice and wheat would be procured from our farmers by the Food Corporation of India (FCI), which started in 1965. The idea behind all this was that grains procured through FCI would be distributed through ration shops for the general public at subsidized rates, while buffer stocks would be maintained for ensuring enough availability at times of drought and floods for the affected populations. And thus, national food security would be ensured. Also, the food could be used for Mid-Day Meal Schemes and Integrated Child Development Scheme (ICDS).
Thus a combination of food security and security of incomes for farmers would be ensured through PDS.
gargi35:
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