The correct option is C PDS prices for APL cards are similar to the local market prices.
After the introduction of the Targeted Public Distribution System, three different rations cards were issued based on the families' income. However, Above Poverty Line families get minimal discounts at the ration shops. As a result, the price for APL cardholders is almost the same as the price in the open market. So naturally, they have little incentive to buy from a ration shop where the quality of foodgrains is also compromised.