**Subject:** Economy The **Public Distribution System (PDS)**, India's largest food security program, faces multifaceted challenges despite serving as a crucial social safety net for millions. According to an **ICRIER report**, about **28% of food grains are diverted**, causing an annual loss of **โน69,000 crore**. ## Major Challenges of PDS **1. Leakages and Diversion**
- **Ghost Beneficiaries**: Approximately **20 million tonnes** of rice and wheat meant for **814 million people** are diverted to open markets or exported.
- **State-wise Variations**: States like **Arunachal Pradesh, Nagaland, and Gujarat** show highest leakage rates, while **Bihar and West Bengal** demonstrate improvement. **2. Identification and Targeting Issues**
- Outdated beneficiary databases leading to exclusion errors.
- Complex data collection and verification processes.
- Multiple data sources causing inconsistencies in beneficiary lists. **3. Infrastructure and Storage Problems**
- Inadequate storage facilities leading to grain wastage.
- Poor last-mile connectivity affecting distribution.
- Limited technological integration at Fair Price Shops (FPS). ## Making PDS Effective and Transparent **1. Technological Integration**
- Implementation of **Aadhaar-based biometric authentication**.
- Usage of **e-PoS devices** for real-time tracking.
- Integration with **End-to-End Computerization** of PDS operations. **2. Policy Reforms**
- **NFSA 2024 Amendment** focusing on micronutrient specifications.
- Enhanced provisions under **Section 31** for remote area coverage.
- Regular updating of beneficiary databases through door-to-door surveys. **3. Monitoring and Accountability**
- Setting up vigilance committees at various levels.
- Implementation of grievance redressal mechanisms.
- Regular social audits and community participation. The transformation of PDS requires a multi-pronged approach combining **technological solutions** with **policy reforms**. Success stories like **Direct Benefit Transfer (DBT)** in food subsidy and **One Nation One Ration Card (ONORC)** demonstrate the potential for creating an efficient and transparent food security system in India.