Question

Suppose you are the Chief Minister of a state. You found that some people in your state are well off and are willing to give up their subsidised foodgrain benefits. People are also distributed to different levels of the economic strata. Which of the following PDS will you choose?

• A. Universal Public Distribution System
• B. Targeted Public Distribution System
• C. Uniform Public Distribution System
• D. It is better not to operate the PDS.

Answer 1

The correct option is B Targeted Public Distribution System

For this particular case, targeted PDS can be more efficient. Generally, two types of public distribution systems are followed by the states of India,the Universal Public Distribution System and the Targeted Public Distribution System. A universal public distribution system means providing foodgrains at low costs to all people in the state. Under the targeted PDS, people are identified based on specific criteria and equipped with ration cards accordingly.