The drawbacks of the Public Distribution System (PDS) are as follows:
a. Limited benefits to the poor : Under the PDS, food grains are provided to the Nation Card holders only. The seasonal migrant labour and homeless people do not get this benefit as they do not have a permanent residential address.
b. Regional disparities : Large number of the BPL families in the less developed states do not avail the benefits of the PDS.
c. Urban bias : The transport system in the villages is not efficient. As a result, the food grains and Kerosene are not available in the fair price shops in the villages.
d. Inefficient Food Corporation of India (FCI) : The FCI is inefficient. The excess stock of food grains is not stored properly in the godowns of FCI. There is scarcity of food grains, in spite of increase in the production of food grains.