PDS: Full Form, Meaning, Definition, and Recent Reforms

byPaytm Editorial TeamLast Updated: October 14, 2024

PDS: Full Form & Meaning

PDS stands for Public Distribution System. It is a joint initiative of the central government and the state government to ensure the essential, primarily food items, are distributed at subsidized rates to the population, particularly targeting low-income and vulnerable groups.

The main aim of PDS is to provide the target group with basic amenities of life such as food security, stabilize prices, and ensure equitable distribution of resources.

Key Points for PDS

  • Subsidized Prices: Under PDS, the prices for foods are subsidized such as rice, wheat, sugar, and cooking oil. The aim is to help people with low-income afford basic necessities.
  • Target Group: The key target group under PDS is the economically disadvantaged section of the society including people under BPL (below poverty line), marginalized communities, and other vulnerable groups.
  • Distribution: The distribution of food at subsidized rate is done by a network of Fair price shops (FPS) or Public distribution centers made by the government. 
  • Beneficiary identification: Ration card along with a few other identification documents are required to availed the benefits under PDS scheme
  • Centralized procurement: The government centrally procures food grains and other items under the scheme from producers, and later distributes it to states and Union Territories. 

Recent Reforms

The PDS was initially introduced in 1906, with time this scheme has constantly been revamped. Following are a few reforms made under the scheme over the years.

  • Direct Benefit Transfer (DBT): Some regions have introduced DBT schemes where subsidies are provided directly to beneficiaries’ bank accounts, reducing leakages and improving efficiency.
  • E-Ration Cards: Digitization of ration cards and the introduction of biometric verification systems aim to streamline the distribution process and reduce fraud.
  • Online Platforms: The use of online platforms and apps to manage PDS operations helps in better tracking and monitoring of the distribution process.

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