Question

Vasanth is a farmer living below poverty line and Vineeth is a diamond merchant. Vasanth buys a litre of cooking oil at ₹20. But Vineeth buys it at ₹50. Identify the reason for this difference.

• A. Universal Public Distribution System
• B. Revamped Public Distribution System
• C. Targeted Public Distribution System
• D. Minimum Support Price

Answer 1

The correct option is C Targeted Public Distribution System

Vasanth is a farmer living below the poverty line. Therefore, he cannot afford to buy the essential products at the prevalent market prices. In contrast, Vineeth can afford to purchase products at any price. And so, it would be wise to provide subsidies for Vasanth and not Vineeth. This is possible through the Targeted Public Distribution System or TPDS. Under TDPS, the prices of essential commodities differ for those living below the poverty line and those living above the poverty line.