The correct option is (d).
Explanation
The Public Distribution System (PDS) is a critical component of India's food security safety net. However, the functioning of Fair Price Shops (FPS) is frequently hindered by various operational malpractices aimed at illicit profiteering.
- Statement 1 is Correct: A primary malpractice involves the diversion of subsidized food grains meant for beneficiaries to the open market, where they are sold at higher market rates. This leads to significant leakage in the supply chain.
- Statement 2 is Correct: Dealers often resort to selling poor quality or adulterated grains to ration cardholders while diverting the high-quality stock received from the government to the open market.
- Statement 3 is Correct: Irregular opening of shops is a deliberate tactic used to restrict beneficiary access. By limiting the time available for beneficiaries to claim their entitlements, dealers can falsely report unclaimed stock, which is subsequently diverted.
Key Takeaway: The efficacy of the Public Distribution System is often compromised by dealer-level malpractices such as the diversion of stock, quality adulteration, and irregular shop timings, which deny beneficiaries their legal entitlements.