what are the criticism faced by public distribution system in explain
Answers
Public Distribution System Criticism
1. Dislocation:
Firstly, it is wrong to believe that once a fair price shop is set up, the common man’s requirements of consumer goods are met at reasonable prices.
The fair price shops do not often lift the sanctioned quotas due to one reason or the other, causing dislocation in the smooth flow of commodities from producing centres to numerous (and often distant) consuming areas.
Public Distribution System Criticism
2. Poor Quality
Secondly, the poor quality of commodities supplied seems to be the proximate cause of poor off-take of commodities like wheat and rice in urban areas. Easy availability in the open market also tends to reduce the quantity of purchase from the PDS.
Experience has shown that when the supply of a commodity covered under the PDS is abundant; consumers turn away from the fair price shops and buy their requirements as far as possible from the open market. This happened in case of sugar in 1976, when the free market price dropped below the official fair price.
This implies that wherever alternative sources of supplies are operating and are easily accessible to consumers, the fair price shops lose importance. Thus the PDS is effective mainly in times of shortages and rising prices.
Public Distribution System Criticism 3. Poor Image:
Moreover, the image of fair price shops, as a distributor of quality goods, is poor. The general impression of the people is that sub-standard goods are being sold through fair price shops.
Public Distribution System Criticism
4. Lack of Integrated Approach
An efficient PDS requires strong link among production, procurement, transportation, storage and distribution of the selected commodities. In the past, responsibilities for these have been divided among many people and, thus, there has been a lack of an integrated system or an integrated approach which alone could ensure an efficient PDS.
Public Distribution System Criticism
5. Lack of Demand-Supply Balance:
Continuous increase in production in response to rising demand is absolutely essential to ensure price stability. There are few problem areas of continued demand-supply imbalance in essential commodities like pulses, edible oils, sugar, etc. It has not been possible to achieve technological breakthrough in the production of pulses and oilseed while sugarcane production has been marked by cyclical fluctuations.
Public Distribution System Criticism
6. Lack of Profit Margin:
Low profit margin turned out to be the major complaint of fair price shop-owners. Most of the shopkeepers have to go to warehouses more than once to take delivery of their allotted quotas.
Public Distribution System Criticism
7. Partial Success:
The role of PDS in controlling prices has been partly effective as in the case of food-grains and to some extent in edible oils. While procurement of cereals has been rising in recent years, the off-take has fallen sharply. The existence of a buffer stock is acting as a cushion against any attempt by traders to raise prices artificially in times of shortages.
Public Distribution System Criticism
8. Leakages:
The strengthening of the PDS has almost put an end to black marketing of food-grains in the country. However, in the case of edible oils, despite massive imports year after year, strict control on their prices could not be enforced largely due to leakages from the PDS. There are instances of imported oil being sold in the open market at higher prices.
Public Distribution System Criticism
9. Urban Bias:
A close look at the geographical distribution of fair price shops reveals that administrative convenience — rather than the essential objectives of the PDS had determined its expansion. It has an urban bias, with most of the shops being located in cities and towns. As a consequence the benefits of PDS are available to the urban rich and not to the rural poor.
Public Distribution System Criticism
10. Public Procurement:
Finally, it may also be emphasised that the operation of price control and rationing has to be supplemented by public procurement.
criticism were faced by public distribution system-
1-distributer did not distribute all the goods which was criticised.
2-adultration was done by distributers in order to provide less valuable goods
3-people thought that they are providing goods which is less valuable to maintain living standard between rich and poor
4-distributer didnot distribute goods timely too,