Functioning

 

  • PDS is operated under the joint responsibility of the Central and the State/UT Governments.
  • The central  government  is  responsible  for  making  available  the  food  grains  needed  for the  PDS  through the  Food  Corporation  of  India  and  providing a  subsidy  to  make  it affordable.
  • The state governments are responsible  for  ensuring  that  beneficiaries can access  commodities  sold  under  the  PDS,  co-ordinating  the  entire  supply  process from  FCI  godowns  to  the  beneficiaries  and  monitoring  PDS
  • Fair price  shops (FPSs)  functioning   under  the   PDS  are  nodal  points   of  immense  importance  since beneficiaries  purchase  subsidised  PDS  goods  through the FPS.
  • The method of  licensing FPSs  and  monitoring  compliance  through  vigilance  committees  and  other  government officials are elaborately discussed in the PDS Control Order 2001 (GOI 2001), issued by the Department of Food and Public Distribution, Government of India.
  • The FCI purchases  food  grains  from  farmers  at the  minimum  support  price  (MSP)  and issues  food  grain  at  a  uniform  central  issue  price  (CIP)  to  all  states.
  • The CIP  is  lower than  the  economic  cost  incurred  by  the  central  government  to  procure  food
  • The main components   of   economic   cost   include   payment   to   growers and costs   for transporting,  handling,  storing  and  distributing  the  grain,  in  addition  to  the  cost  of maintaining the prescribed buffer stock.
  • The difference between the economic cost and the CIP is  the  food  subsidy  borne  by  the  central  government  from  its  annual  non-Plan budget.
  • The states  fix  consumer  end  prices  (CEP)  at  the  FPS  level  at  not  more  than Re.0.50  per  kg  over  the  central  issue  price  (CIP),  particularly  for  the  population  below the poverty line.
  • The states are also free to add to the coverage under the BPL category and meet the subsidy from their own resources.
  • The operational responsibility including allocation within State, identification of eligible families, issue of Ration Cards and supervision of the functioning of Fair Price Shops (FPSs) etc., rest with the State Governments.
  • Under the PDS, presently the commodities namely wheat, rice, sugar and kerosene are being allocated to the States/UTs for distribution.
  • Some States/UTs also distribute additional items of mass consumption through the PDS outlets such as pulses, edible oils, iodized salt, spices, etc.