Public Distribution System (PDS) and Targeted PDS
The Public Distribution System is the primary institutional mechanism through which the Government of India distributes subsidised foodgrains to eligible households. Historically a universal system, it was restructured into the Targeted PDS (TPDS) in 1997 to focus benefits on Below Poverty Line (BPL) and Antyodaya Anna Yojana (AAY) households. The TPDS operates through a three-tier structure: central government procurement and storage (primarily via the Food Corporation of India), state government allocation and transportation, and distribution through a network of approximately 5.43 lakh Fair Price Shops (FPS). Challenges historically included leakages, ghost beneficiaries, diversion of grains, and inadequate dealer margins that made FPS operations unviable.
- Approximately 5.43 lakh FPS across India; over 99.6% (5.41 lakh) now automated with electronic Point of Sale (ePoS) devices.
- FPS dealer margins are a central policy lever: inadequate margins have been a structural cause of diversion and shop closures.
- SARTHAK-PDS enhances FPS dealer margins as part of its viability measures.
● Tracked since May 27, 2026 · last seen May 27, 2026 · updates as the daily brief publishes