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Abstract

The Public Distribution System (PDS) was institutionalized in the country in the 60s to achieve multiple objectives including ensuring stability of prices, rationing of essential commodities in case of deficit in supplies, ensuring availability of basic commodities to the poor and needy and to check the practice of hoarding and black marketing. This paper considers the major issues involving PDS in India from the standpoint of Government and other major stakeholders. The issues discussed are Targeted PDS against PDS; Viability of the Fair Price Shops; Leakage and Diversion in PDS; Off-take related issues and the issue of Food Stamp implementation. Various policy recommendations are made for solving the issues.