What are the drawbacks of the PDS?
Answers
Disadvantages/ drawbacks of PDS are as follows;
1) Cash can be used to buy non- food items
2)Poor identification and targeting of beneficiaries
3)Low off take of food grain from each household
4)Large leakages and diversions of subsidised food grain
5)Adulteration of food grain
6)Vulnerable to targeting errors
There is poor access to banks and post offices in some areas
7)There is poor access to banks and post offices in some areas
8)Food coupons are not indexed for inflation; may expose recipients to inflation
9)Difficult to administer; known to have delays in issuing food coupons and reimbursing shops
10)Lack of viability of FPSs due to low margins
AnswEr:
There are many drawbacks of PDS ( Public distribution system ) such as :
• The dealers resort multipractice like diverting the grains to open market to get better margin and sell poor quality grains at the ration shops.
• It is common to find that ration shops regularly have unsold stock of poor quality grains left.
• Now with the introduction of three types of ration cards at the any famine above poverty line gets very little documents at the ration shops .
The prices for APL family is about as high as open market prices so there was little incentive for them to buy these items from the ration shops.