What are the crities PDS in India explain
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This article throws light upon the ten major criticism of the Public Distribution System (PDS). The Criticisms are: 1. Dislocation 2. Poor Quality 3. Poor Image 4. Lack of Integrated Approach 5. Lack of Demand-Supply Balance 6. Lack of Profit Margin 7. Partial Success 8. Leakages 9. Urban Bias 10. Public Procurement.
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:
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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:
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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.
The problem posed by the stagnation in the production of pulses is compounded by the fact that the supply of pulses cannot be increased significantly through imports. In case of edible oils and sugar which are highly prone to speculation the strategy has been, in addition to the thrust on production, to import edible oils on a regular basis and to import sugar as and when required.
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:
ADVERTISEMENTS:
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:
ADVERTISEMENTS:
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.
The problem posed by the stagnation in the production of pulses is compounded by the fact that the supply of pulses cannot be increased significantly through imports. In case of edible oils and sugar which are highly prone to speculation the strategy has been, in addition to the thrust on production, to import edible oils on a regular basis and to import sugar as and when required.
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major commodities distributed include staple food grains,such as wheat,rice,sugar and kerosene,through a network of fair price shop established in several States across the country . food corporation of india ,a government owned corporations ,procures and maintains the PDS.
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