Which of the following factors has contributed to the decline of the Public Distribution System (PDS) in recent years? 1. Diverting grains to the open market by PDS dealers. 2. Selling poor quality grains at ration shops. 3. The small difference between the price of PDS items for APL families and the open market price. 4. Irregular opening of ration shops.

Correct Option The correct option is (d). Explanation The Public Distribution System (PDS) is a major food security intervention in India aimed at distributing essential commodities to vulnerable sections at subsidized prices. Despite its reach, the system has faced criticism and a decline in effectiveness due to structural inefficiencies, leakages, and operational issues. Statement-wise Analysis - Statement 1 is Correct: A significant challenge facing the PDS is the diversion of subsidized grains to the open market. Fair Price Shop (FPS) dealers often sell stocks meant for the poor in the open market to earn higher profits, leading to shortages for genuine beneficiaries. - Statement 2 is Correct: The quality of food grains provided through ration shops is frequently reported to be inferior. Poor quality acts as a deterrent, causing beneficiaries to opt out of the system or purchase from the open market despite higher costs. - Statement 3 is Correct: Under the Targeted Public Distribution System (TPDS), the price of commodities for Above Poverty Line (APL) families was often set close to the market price. When the price differential is negligible, APL families prefer buying better quality grains from the open market, leading to low offtake and reduced relevance of PDS for this group. - Statement 4 is Correct: Operational irregularities, such as the irregular opening of ration shops, prevent beneficiaries from accessing their entitlements. This unreliability forces households to depend on alternative sources for their daily food requirements. Key Takeaway: The efficiency of the Public Distribution System is compromised by supply-side leakages (diversion), quality concerns, operational irregularities (irregular shop timings), and pricing structures that reduce incentives for certain beneficiary groups (APL) to participate.

Which of the following factors has… - NCERT Class 9 Economics MCQ

NCERT Class 9 Economics — Chapter 4: Food Security in India

mcqmedium

Which of the following factors has contributed to the decline of the Public Distribution System (PDS) in recent years?

Diverting grains to the open market by PDS dealers.
Selling poor quality grains at ration shops.
The small difference between the price of PDS items for APL families and the open market price.
Irregular opening of ration shops.

NCERT textbook question

From NCERT Economics - class 9 · Page 52

Options

A1, 2 and 3 only
B2, 3 and 4 only
C1 and 4 only
D1, 2, 3 and 4

Did you get this right?

Solution

Correct Option

The correct option is (d).

Explanation

The Public Distribution System (PDS) is a major food security intervention in India aimed at distributing essential commodities to vulnerable sections at subsidized prices. Despite its reach, the system has faced criticism and a decline in effectiveness due to structural inefficiencies, leakages, and operational issues.

Statement-wise Analysis

Statement 1 is Correct: A significant challenge facing the PDS is the diversion of subsidized grains to the open market. Fair Price Shop (FPS) dealers often sell stocks meant for the poor in the open market to earn higher profits, leading to shortages for genuine beneficiaries.
Statement 2 is Correct: The quality of food grains provided through ration shops is frequently reported to be inferior. Poor quality acts as a deterrent, causing beneficiaries to opt out of the system or purchase from the open market despite higher costs.
Statement 3 is Correct: Under the Targeted Public Distribution System (TPDS), the price of commodities for Above Poverty Line (APL) families was often set close to the market price. When the price differential is negligible, APL families prefer buying better quality grains from the open market, leading to low offtake and reduced relevance of PDS for this group.
Statement 4 is Correct: Operational irregularities, such as the irregular opening of ration shops, prevent beneficiaries from accessing their entitlements. This unreliability forces households to depend on alternative sources for their daily food requirements.

Key Takeaway: The efficiency of the Public Distribution System is compromised by supply-side leakages (diversion), quality concerns, operational irregularities (irregular shop timings), and pricing structures that reduce incentives for certain beneficiary groups (APL) to participate.

Your note

More from Chapter 4: Food Security in India

In the study of food security, the concept of “entitlements” explains access to food beyond mere availability. This framework was introduced by:

easy

Match List I with List II and select the correct answer using the code given below: List I (Organization) | List II (Region/Operation) A. Mother Dairy | 1. Gujarat (Milk) B. Amul | 2. Tamil Nadu (Run by cooperatives) C. Academy of Development Science | 3. Delhi (Milk and Vegetables) D. Fair Price Shops | 4. Maharashtra (Grain Banks)

easy

Which of the following food intervention programmes was introduced in 1975 on an experimental basis?

medium

Consider the following statements summarizing the food security scenario in India: 1. Food security is ensured if all citizens have enough nutritious food available and the capacity to buy it. 2. The worst affected groups are landless people in rural areas and casual labourers in urban areas. 3. The Public Distribution System (PDS) is the only programme ensuring food security in India. Which of the following statements are correct ?

medium

The Targeted Public Distribution System (TPDS) was the first to adopt which principle?

medium

Keep practising Chapter 4: Food Security in India

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