The correct option is (c) 1 and 3 only
Explanation
The Public Distribution System (PDS) is a mechanism for food security and poverty alleviation. The government procures foodgrains from farmers at the Minimum Support Price (MSP) and distributes them to beneficiaries through Fair Price Shops (FPS) at a subsidized rate known as the Central Issue Price (CIP).
Statement-wise Analysis:
- Statement 1 is Correct: The price at which foodgrains are made available to consumers through the network of ration shops (Fair Price Shops) is officially known as the Issue Price. This price is determined by the Central Government.
- Statement 2 is Incorrect: The fundamental purpose of the PDS is to provide essential commodities to the poor at affordable rates. Therefore, the Issue Price is significantly lower than the prevailing market price. The difference between the economic cost of foodgrains (procurement + distribution costs) and the Issue Price constitutes the food subsidy bill.
- Statement 3 is Correct: The Targeted Public Distribution System (TPDS), introduced in 1997, shifted the focus from a universal system to a targeted one. It adopted a differential price policy, distinguishing between households Below Poverty Line (BPL) and Above Poverty Line (APL). BPL households were offered foodgrains at heavily subsidized rates, while APL households received them at rates closer to the economic cost.
Key Takeaway:
The Issue Price is the subsidized rate for PDS distribution and is lower than the market price. The TPDS introduced structural changes by categorizing beneficiaries into poor (BPL) and non-poor (APL) with distinct pricing structures for each.