{"id":181555,"date":"2022-04-27T20:34:03","date_gmt":"2022-04-27T15:04:03","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=181555"},"modified":"2022-04-27T20:34:03","modified_gmt":"2022-04-27T15:04:03","slug":"pds-has-had-a-spectacular-run-that-may-not-last","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/pds-has-had-a-spectacular-run-that-may-not-last\/","title":{"rendered":"PDS has had a spectacular run. That may not last"},"content":{"rendered":"<p aria-level=\"1\"><\/p>\n<p><b><span data-contrast=\"none\">Context: <\/span><\/b>Its golden chapter was scripted in an environment of low global commodity prices and surplus domestic foodgrain production. That party is over, even as food inflation is back.<\/p>\n<h5><b><span data-contrast=\"none\">Why was the 2020-21 year very important for the agricultural sector?<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:276}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"none\">(1) In 2020-21, Agriculture was the only sector to grow at 3.3%, even as the economy overall contracted by 4.8%. The farm sector added <\/span><b><span data-contrast=\"none\">11 million<\/span><\/b><span data-contrast=\"none\"> when the rest of the economy shed 15 million jobs from <\/span><b><span data-contrast=\"none\">2019-20 to 2021-22.<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">(2) Till <\/span><b><span data-contrast=\"none\">2015-16<\/span><\/b><span data-contrast=\"none\">, only a handful of states \u2014 Kerala, Tamil Nadu, Andhra Pradesh, Chhattisgarh, Orissa, Madhya Pradesh, and West Bengal had a well-functioning PDS. In 2020-21, <\/span><b><span data-contrast=\"none\">India\u2019s public distribution system (PDS<\/span><\/b><span data-contrast=\"none\">) reforms were seen in <\/span><b><span data-contrast=\"none\">Bihar, Jharkhand<\/span><\/b><span data-contrast=\"none\"> and <\/span><b><span data-contrast=\"none\">Uttar Pradesh (UP)<\/span><\/b><span data-contrast=\"none\">.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">As per the <\/span><b><span data-contrast=\"none\">NITI Aayog\u2019s National Multidimensional Poverty Index<\/span><\/b><span data-contrast=\"none\">, the <\/span><b><span data-contrast=\"none\">offtake of rice and wheat<\/span><\/b><span data-contrast=\"none\"> significantly increased both at the <\/span><b><span data-contrast=\"none\">all-India level<\/span><\/b><span data-contrast=\"none\"> and for the three poorest states<\/span><b><span data-contrast=\"none\"> Bihar, Jharkhand<\/span><\/b><span data-contrast=\"none\"> and <\/span><b><span data-contrast=\"none\">Uttar Pradesh (UP)<\/span><\/b><span data-contrast=\"none\">.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">(3) The PDS was expanded beyond rice and wheat in some states. For example, Kerala leveraged its PDS network to supply <\/span><b><span data-contrast=\"none\">free food kits<\/span><\/b><span data-contrast=\"none\"> to all ration card holders during the 2020 Covid lockdown.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">(4) Unlike the <\/span><b><span data-contrast=\"none\">1943 Bengal<\/span><\/b><span data-contrast=\"none\"> or <\/span><b><span data-contrast=\"none\">1966-67 Bihar famines<\/span><\/b><span data-contrast=\"none\">, this time India was able to avert widespread starvation during the Covid-19 pandemic. On 2020-21, the PDS system turned out to be the only <\/span><b><span data-contrast=\"none\">effective social safety net<\/span><\/b><span data-contrast=\"none\"> amid massive job and income losses during the pandemic.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"none\">What were the factors responsible for improved functioning of the PDS system in 2020-21?<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:276}\">\u00a0<\/span><\/h5>\n<p><b><span data-contrast=\"none\">The National Food Security Act (NFSA) <\/span><\/b><span data-contrast=\"none\">along with <\/span><b><span data-contrast=\"none\">PMGKAY<\/span><\/b><span data-contrast=\"none\"> has led to a massive jump in grain offtake through the PDS.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">(1) The NFSA legally entitled <\/span><b><span data-contrast=\"none\">5 kg <\/span><\/b><span data-contrast=\"none\">of grain per person per month at highly subsidised rates of Rs 2\/kg for wheat and Rs 3\/kg for rice up to 75% of India\u2019s rural and 50% of the urban population.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">(2) <\/span><b><span data-contrast=\"none\">The<\/span><\/b> <b><span data-contrast=\"none\">Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) scheme<\/span><\/b><span data-contrast=\"none\"> was launched in the wake of the Covid-induced economic disruptions. It mandated an extra 5 kg grain per person per month free of cost to the PDS beneficiaries.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Both the schemes led to increase in the offtake of the food grain in the poorer states like UP, Bihar and Jharkhand. The offtake of these states increased from 21.6% in 2012-13 to 28.6% in 2021-22.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"none\">What are the upcoming challenges to India\u2019s food security?<\/span><\/b><span data-contrast=\"none\">\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:276}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"none\">This year, the<\/span><b><span data-contrast=\"none\"> procurement<\/span><\/b><span data-contrast=\"none\"> of food grain is likely to be short. The <\/span><b><span data-contrast=\"none\">wheat procurement<\/span><\/b><span data-contrast=\"none\"> can be low due to poor crop yield owing to bad weather in March 2022. The <\/span><b><span data-contrast=\"none\">rice procurement<\/span><\/b><span data-contrast=\"none\"> can be challenged due to disruption in supply of fertilisers in the Kharif season.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The <\/span><b><span data-contrast=\"none\">Food Corporation of India\u2019s stocks<\/span><\/b><span data-contrast=\"none\"> can probably sustain the annual offtake for NFSA. But <\/span><b><span data-contrast=\"none\">PMGKAY<\/span><\/b><span data-contrast=\"none\"> offtake can see challenges.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">At present, the<\/span><b><span data-contrast=\"none\"> global food inflation <\/span><\/b><span data-contrast=\"none\">is posing a challenge. The PDS is mandated to protect ordinary people from <\/span><b><span data-contrast=\"none\">extraordinary price rises.<\/span><\/b><span data-contrast=\"none\">\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Source<\/span><\/b><span data-contrast=\"auto\">: The post is based on the article \u201c<strong>PDS has had a spectacular run. That may not last<\/strong>\u201d published in <strong>The Hindu<\/strong> on <strong>27<\/strong><\/span><strong>th April 2022.\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Context: Its golden chapter was scripted in an environment of low global commodity prices and surplus domestic foodgrain production. That party is over, even as food inflation is back. Why was the 2020-21 year very important for the agricultural sector?\u00a0 (1) In 2020-21, Agriculture was the only sector to grow at 3.3%, even as the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/pds-has-had-a-spectacular-run-that-may-not-last\/\">Continue reading <span class=\"screen-reader-text\">PDS has had a spectacular run. That may not last<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10498],"class_list":["post-181555","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/181555","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=181555"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/181555\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=181555"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=181555"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=181555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}