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UPSC Essentials | Mains answer practice — GS 3 : Questions on Public Distribution System and rural wages (Week 79)Sign In to read

UPSC Essentials | Mains answer practice — GS 3 : Questions on Public Distribution System and rural wages (Week 79)Sign In to read

UPSC Essentials | Mains answer practice — GS 3 : Questions on Public Distribution System and rural wages (Week 79)Sign In to read

UPSC Essentials brings to you its initiative for the practice of Mains answer writing. It covers essential topics of static and dynamic parts of the UPSC Civil Services syllabus covered under various GS papers. This answer-writing practice is designed to help you as a value addition to your UPSC CSE Mains. Attempt today’s answer writing on questions related to topics of GS-3 to check your progress.

India’s Public Distribution System (PDS) has faced significant challenges in terms of inefficiency, leakage, and inadequate reach to the poor. Discuss the need for reform in the PDS, particularly focusing on the issues of system leakages, implementation inefficiencies, and the role of agricultural investment.

Rural wage stagnation has emerged as a significant issue in India’s economic landscape, with implications for poverty alleviation and rural development. Analyse the factors contributing to stagnant rural wages and their socio-economic impact.

Introduction

— The introduction of the answer is essential and should be restricted to 3-5 lines. Remember, a one-liner is not a standard introduction.

— It may consist of basic information by giving some definitions from the trusted source and authentic facts.

Body

— It is the central part of the answer and one should understand the demand of the question to provide rich content.

— The answer must be preferably written as a mix of points and short paragraphs rather than using long paragraphs or just points.

— Using facts from authentic government sources makes your answer more comprehensive. Analysis is important based on the demand of the question, but do not over analyse.

— Underlining keywords gives you an edge over other candidates and enhances presentation of the answer.

— Using flowcharts/tree-diagram in the answers saves much time and boosts your score. However, it should be used logically and only where it is required.

Way forward/ conclusion

— The ending of the answer should be on a positive note and it should have a forward-looking approach. However, if you feel that an important problem must be highlighted, you may add it in your conclusion. Try not to repeat any point from body or introduction.

— You may use the findings of reports or surveys conducted at national and international levels, quotes etc. in your answers.

Self Evaluation

— It is the most important part of our Mains answer writing practice. UPSC Essentials will provide some guiding points or ideas as a thought process that will help you to evaluate your answers.

QUESTION 1: India’s Public Distribution System (PDS) has faced significant challenges in terms of inefficiency, leakage, and inadequate reach to the poor. Discuss the need for reform in the PDS, particularly focusing on the issues of system leakages, implementation inefficiencies, and the role of agricultural investment.

Note: This is not a model answer. It only provides you with thought process which you may incorporate into the answers.

Introduction:

— The Public Distribution System (PDS) emerged as a means of managing scarcity by distributing food grains at reasonable costs. It has evolved into an important component of the government’s food-economy management strategy over time. PDS is supplemental in nature, and it is not designed to meet a household’s or a group’s whole requirement for any of the commodities supplied under it.

— PDS is run jointly by the central and state/UT governments. The Central Government, through the Food Corporation of India (FCI), has taken over the acquisition, storage, transportation, and bulk allotment of food grains to state governments. The State Governments bear operational responsibility for allocation within the state, identifying eligible households, issuing Ration Cards, and supervising the operation of Fair Price Shops (FPSs), among other things.

Body:

You may incorporate some of the following points in your answer:

Challenges to the Public Distribution System

— World Bank (2022) data shows that 12.9 per cent of Indians live on less than $2.15 (PPP) a day, an extreme level of poverty. The NITI Aayog report (2024) says that 248 million people came out of poverty in the last 9 years, with the multidimensional poverty index (MDPI) declining from 29.17 per cent to 11.28 per cent between 2013-14 to 2022-23.

— PDS is inefficient, and its operations are prohibitively expensive.

— The procurement/transportation ratio is too high, indicating ‘wasteful’ movements.

— Storage losses are extremely substantial.

— The lack of trustworthy and dynamic data on consumption and mobility patterns has always been a major barrier for planners in ensuring the effective delivery of important central welfare initiatives to the most disadvantaged members of our society.

— Other concerns include a lack of storage capacity with FCI, corruption and leaks, and quality issues.

Need for reform in the PDS

— The Indian government was aware of significant leakages in the PDS, as noted in a 2015 report by the High-Powered Committee on Grain Management led by Shanta Kumar. According to the 2011-12 HCES, leakages were assessed to be around 46% at the time.

— In 2016, the Government of India used Point-of-Sale (PoS) devices at Fair Price Shops (FPS) to plug leaks by combining biometric authentication and real-time transaction tracking. Today, over 90% of FPS nationwide are equipped with PoS machines. This has helped reduce leakages from 46% to 28%, but they are still very high.

— To alleviate malnutrition, at least part of the FPS should be converted into “nutrition hubs.” They can provide a diverse range of produce, such as eggs, pulses, millets, and fruits, in addition to grains. Beneficiaries might use a digital food coupon system to redeem their coupons at nutrition hubs for a broader range of healthier foods.

— The Department of Food and Public Distribution (DFPD) launched the SMART-PDS project to implement data-driven decision-making that will go a long way in addressing this deficit.

— Convergence and integration, combined with the usage of AI, can be a game changer for both individuals and governments in terms of responsibility across all programs.

— The Centre intends to expand PDS reforms by leveraging data analytics/BI platforms, as well as other ICT tools and technologies. The PDS operation will be standardised through the use of technology and integrated with the FCI, CWC, rail and road transport supply chains, Ministry of Education, Women and Child Development, and UIDAI. Technology-led changes are expected to address the state-level technological limits of PDS operations in terms of IT gear, software, and technical people.

Conclusion:

— Currently, over 93% of the total monthly allocated foodgrains are delivered via Aadhaar authentication utilising electronic Point of Sale (ePoS) devices. This dividend is directly related to the complete digitisation of ration cards, online administration of beneficiary data, computerisation of foodgrain allocation and supply chain management systems in all states/UTs, and the installation of ePoS devices across the country.

(Source: Public Distribution System must be reformed to fix leakage, invest in farming by Ashok Gulati and Raya Das, nfsa.gov.in, SMART PDS scheme: A bold initiative in digitisation by Sudhanshu Pandey)

Points to Ponder

Suggest some measures to improve PDS system

What is the role of FCI in PDS?

Related Previous Year Questions

What are the major challenges of the Public Distribution System (PDS) in India? How can it be made effective and transparent? (2022)

There is also a point of view that Agricultural Produce Market Committees (APMCs) set up under the State Acts have not only impeded the development of agriculture but also have been the cause of food inflation in India. Critically examine. (2014)

QUESTION 2: Rural wage stagnation has emerged as a significant issue in India’s economic landscape, with implications for poverty alleviation and rural development. Analyse the factors contributing to stagnant rural wages and their socio-economic impact.

Note: This is not a model answer. It only provides you with thought process which you may incorporate into the answers.

Introduction:

— The Indian economy grew at an average annual rate of 4.6% between 2019-20 and 2023-24, and 7.8% in the prior three fiscal years (April-March). For both periods, the farm sector has grown at an average rate of 4.2% and 3.6%. However, these macroeconomic growth rates are not reflected in rural wages.

— Wage growth has been estimated in both nominal (current value) and real terms (after deducting annual inflation based on the rural India consumer price index), for all rural and agricultural jobs. The latter comprises processes such as ploughing/tilling, sowing, harvesting/threshing/winnowing, commercial crop picking, horticulture, animal husbandry, watering/irrigation, and plant protection.

— The Labour Bureau compiles daily wage rate data for 25 agricultural and non-agricultural occupations, collected every month from 600 sample villages spread over 20 states.

Body:

You may incorporate some of the following points in your answer:

Factors contributing to stagnant rural wages and their socio-economic impact

(i) Rising Labour Force Participation Rates (LFPR) among women, especially in rural India

— LFPR is the percentage of the population aged 15 and up who is working or seeking/willing to work for a significant portion of a given year. In 2018-19, the average female LFPR across India was 24.5%. It increased to 30% in 2019-20, 32.5% in 2020-21, 32.8% in 2021-22, 37% in 2022-23, and 41.7% in the most recent official Periodic Labour Force Survey for 2023-24 (July–June).

— The rural female LFPR increased from 26.4% in 2018-19 to 33%, 36.5%, 36.6%, 41.5%, and 47.6% during the next five years. During this time (2018-19 to 2023-24), the male LFPR increased only modestly, from 75.5% to 78.8% for all India and 76.4% to 80.2% for rural India.

(ii) Less labour-intensive growth

— While the rural female LFPR increased between 2018-19 and 2023-24, so did agriculture’s share of this workforce’s employment, rising from 71.1% to 76.9% over this time. As a result, while more women are entering the rural labour force, they are primarily employed on farms. The movement is from home to field, not factory to office.

— If growth comes from sectors or businesses that require fewer workers per unit of output, it results in a greater share of revenue accruing to capital (i.e. firm profits) as opposed to labour (employee wages/compensation).

(iii) Mitigating factor

— Capital-intensive, investment-led growth benefits cement, steel, and infrastructure companies including L&T, Adani Ports, KEC International, Bharat Forge, Finolex Cables, Kalpataru Projects, PNC Infratech, and NCC Ltd. However, it is not particularly beneficial to manufacturers of fast-moving consumer products, household appliances, durables, and two-wheelers. They profit more from growth that is labour-intensive and consumer-driven.

Conclusion:

— The average nominal year-on-year growth in rural earnings throughout the five years ending 2023-24 was 5.2%. It was greater, at 5.8%, for agricultural salaries alone. However, in actual inflation-adjusted terms, rural earnings grew by an average of -0.4% each year, whereas agricultural wages grew by 0.2%.

— According to the Finance Ministry’s Economic Survey for 2023-24, the sharp increase in rural female LFPR (21.2 percentage points since 2018-19) was mostly due to government schemes such as Ujjwala, Har Ghar Jal, Saubhagya, and Swachh Bharat.

(Source: The paradox of stagnant rural wages by Harish Damodaran)

Points to Ponder

How can the problem of rural wage stagnation be solved?

Read about schemes like Ujjwala, Har Ghar Jal, Saubhagya, and Swachh Bharat.

Related Previous Year Questions

“In the villages itself no form of credit organization will be suitable except the cooperative society.” — All India Rural Credit Survey. Discuss this statement in the background of agricultural finance in India. What constraints and challenges do financial institutions supplying agricultural finance face? How can technology be used to better reach and serve rural clients? (2014)

Livestock rearing has a big potential for providing non-farm employment and income in rural areas. Discuss suggesting suitable measures to promote this sector in India. (2016)

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