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Food Security and the PDS in India

Leakages and Reforms

Studies found large shares of PDS grain did not reach beneficiaries, and reforms such as digitisation have reduced but not eliminated the problem.

Leakage is the system’s Achilles heel.

Scale of problem

Estimates from the 2010s suggested that a large share of grain, close to 40 per cent in some studies, was diverted.

Reforms

Computerised records, Aadhaar-linked cards and electronic point-of-sale machines aim to tie grain to real beneficiaries.

Exclusion risk

Biometric failures or missing links can deny genuine beneficiaries.

Progress

Leakage has fallen in several states, according to studies.

A failed fingerprint

An elderly woman's fingerprint does not match, and she is turned away at the shop.

Assuming digitisation is always an improvement

It can cause exclusion.

Key takeaways
  • Leakage has been high.
  • Digital tools reduce diversion.
  • Exclusion is a risk.
  • States differ in progress.
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