Differential price policy for poor and non-poor.
Explanation
The Public Distribution System (PDS) in India has evolved through various stages to ensure food security while managing fiscal subsidies. The Targeted Public Distribution System (TPDS) was introduced in June 1997 to specifically target subsidies toward the poor.Analysis of the Principle:
- Differentiation based on Poverty Line: The defining feature of the TPDS was the division of the population into two categories: Below Poverty Line (BPL) and Above Poverty Line (APL).
- Differential Price Policy: For the first time, a dual price mechanism was adopted. BPL households were entitled to foodgrains at highly subsidized rates, whereas APL households were issued foodgrains at prices closer to the economic cost. This marked a shift from the earlier universal access model.
Elimination of Other Options:
- Universal coverage for all citizens. Universal coverage: This was the principle of the General PDS (prior to 1992) where all consumers had access to subsidies regardless of income. TPDS effectively ended universal coverage.
- Free foodgrains for senior citizens. Free foodgrains for senior citizens: This specific provision was introduced under the Annapurna Scheme (launched in 2000) for indigent senior citizens, not as the primary principle of TPDS in 1997.
- Linking PDS with Aadhar cards. Linking PDS with Aadhar cards: This is a technological reform implemented much later (post-2010s) to curb leakages and identify beneficiaries (JAM Trinity), rather than a founding principle of the 1997 scheme.
Key Takeaway: The Targeted Public Distribution System (TPDS) of 1997 replaced the universal PDS by introducing a differential price policy based on the economic status (BPL vs. APL) of beneficiaries.