Public Distribution System in India: Evolution and Challenges Through the Lens of a Fair Price Shop Owner

Dharchula, a Himalayan border town in Pithoragarh district of Uttarakhand, is located at an elevation of around 940 meters. Nestled along the Kali River—which forms the boundary between India and Nepal—the town lies nearly 90 km from the district headquarters and about 592 km from the state capital. The rugged Himalayan terrain, narrow mountain roads, and frequent disruptions due to landslides make accessibility a major challenge, limiting the reach of various development programs.

 

Mr. Singh in his FPS-Dharchula

During my recent visit to Dharchula, I had the opportunity to interact with a Fair Price Shop (FPS) owner, Mr. Narup Singh, who has been managing the shop for over 45 years. Through his experience, he has been a key contributor in ensuring the distribution of essential commodities to the local community. Mr. Singh also shared his insights with the WFP team on the evolution of the Public Distribution System (PDS) over the decades.

 

The roots of India’s food distribution system date back to the pre-independence period, particularly during World War II (around 1942), when rationing was introduced to tackle food shortages in select urban aeras. Since then, the system has undergone several phases of transformation—from “Post-independence Expansion” supported by PL-480 imports to the current “Digital Reform Era”, marked by initiatives such as One Nation One Ration Card (ONORC), Aadhaar authenticated distribution.

 

Reflecting on his journey, Mr. Singh shared that he has distributed a wide range of commodities over the years, including rapeseed, palm oil, khand (unrefined sugar), rice, wheat, kerosene, and salt. While the nature of commodities and distribution mandates has evolved with time, his commitment to serving the community has remained constant.

 

However, he also highlighted several challenges faced by FPS owners, particularly in hilly regions. Migration from these areas has led to a gradual decline in the number of ration cardholders, directly impacting their earnings and commission. Additionally, commissions have not been revised adequately over time, and rising inflation has further reduced the motivation of FPS owners. Although digital reforms have improved transparency and accountability, the associated operational costs are largely borne by the shop owners themselves. Poor internet connectivity in remote and mountainous areas further complicates the implementation of digital systems.

 

Mr. Singh emphasized that for the PDS to remain effective and sustainable, especially in hard-to-reach regions, there is a need for greater policy attention toward the challenges faced by FPS owners. Strengthening last-mile delivery mechanisms, revising commissions, and providing targeted support for hilly areas could significantly enhance the efficiency of the system.