Aadhar usage in Public Distribution System

Public Distribution System (PDS) is an Indian food security system. This scheme was launched in 1997, for India’s poor, as subsidised food and non-food items are distributed. The state and central government have the responsibility of modifying the Public Distribution System (PDS), it has grown in India over the past decade. Recently the government determined to link Aadhar usage with Public Distribution System (PDS).

What is the need of Aadhar in Public Distribution system (PDS)

Since corruption has increased up to 90% in some states. The reason from where the corruption arises are:

  • The dealers provide a smaller amount of food grains to actual people who require this and sack the rest.
  • Leakages of food grain with the dealers selling the food grains in the external market.

Model

The lead for these leakages in the Public Distribution System is Chhattisgarh state, so the Public Distribution System is made transparent through:

  • Strict control through which the leakages in the states can be determined by intermediaries.
  • Computerization

This model has become successful and other states also follow the same.

Drawbacks to this approach:

The drawbacks to this approach of Aadhar usage, are:

  • Supreme Court has not yet made Aadhar as mandatory.
  • The Central Government is making it mandatory, that is a clear violation of Supreme Court order.
  • This only eliminates the bogus cards, not the quantity frauds.

Further Approaches:

  • The Direct benefit transfer in terms of LPG subsidy is to be transferred to the Public distribution systems.
  • Technology based end to end solution in Public Distribution System (PDS).
  • Food grains will now available at market prices in the Public Distribution System (PDS) shops.
  • By digitalizing the Public Distribution System (PDS), the leakages will be arrested to a considerable extent.

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