Policy Directions and Public Choices in Direct Cash Transfer Programme of PDS

Abstract

This study was carried out in Puducherry to check the effectiveness of the direct cash transfer programme initiatives and its limitations in addressing household food security. The public distribution system (PDS) was introduced in India in the 1940s to ensure food security in urban areas. This programme was continued even after independence, as it ensures food security during droughts, famines, wars, and so on. However, the programme had implementation problems like leakage, pilferage, delay in supply, low quality of grains, corruption, among others. Recently, the government linked the PDS card with the Aadhar numbers of the household members. The government introduced cash transfers instead of food grain provisioning through fair price shops in three union territories in 2015 on an experimental basis. It was believed that direct cash transfers along with biometrics would address the implementation issues.