The Public Distribution System (PDS) is a food security scheme and a social safety net established by the Government of India under the Ministry of Consumer Affairs, Food and Public Distribution. Its origin traces back to the rationing system introduced by the British during World War II, but the modern PDS evolved from the critical food shortages of the 1960s to manage scarcity and contain the rise in food grain prices. The system was initially universal but was converted into the Targeted Public Distribution System (TPDS) in June 1997 to focus on the poor by classifying beneficiaries into Below Poverty Line (BPL) and Above Poverty Line (APL) categories.
The PDS works through a joint responsibility mechanism: the Central Government, primarily through the Food Corporation of India (FCI), handles the procurement of food grains from farmers at the Minimum Support Price (MSP), storage, transportation, and bulk allocation to states. State Governments are responsible for operational aspects, including the identification of eligible families, issuing Ration Cards, and supervising the network of Fair Price Shops (FPSs), also known as ration shops, which are the last-mile delivery points. Key commodities distributed include rice, wheat, sugar, and kerosene, with some states adding items like pulses and edible oils.
The PDS is fundamentally connected to the National Food Security Act (NFSA), 2013, which replaced the TPDS as a legal entitlement. The NFSA shifted food aid from a discretionary scheme to a justiciable right, legally entitling up to 75% of the rural and 50% of the urban population to subsidized food grains. The Act mandates specific entitlements, such as 5 kg per person per month for Priority Households and 35 kg per household per month for the poorest under the Antyodaya Anna Yojana (AAY), which was launched in December 2000. Recent changes, often modeled after reforms in states like Chhattisgarh, include the digitization of ration cards, automation of FPSs, and the implementation of the One Nation One Ration Card (ONORC) system, which allows beneficiaries to lift their entitlements from any FPS in the country. These technological interventions have helped reduce leakages from an estimated 41.7% in 2011-12 to around 22% by 2022-23, while the core mechanism of subsidized distribution through FPSs remains the same.