Poverty, Food Deprivation & Public Distribution System (PDS) in India

1. Context

• NSS Household Consumption Survey 2024 (after 10+ years) enabled new poverty estimates.

• World Bank (2025): Extreme poverty fell from 16.2% (2011-12) to 2.3% (2022-23).

• However, alternative measures like the “Thali Index” highlight persistent food deprivation.

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2. Conventional Poverty Measurement

• Official method (India): Income/expenditure required to meet minimum calorie intake.

• Limitations: Focuses only on calories, ignores nutrition, balance & satisfaction.

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3. Thali Index as a Metric

• Definition: Measures the affordability of a home-cooked balanced thali (~₹30; rice, dal, roti, vegetables, curd, salad).

• Findings:

  • 50% rural & 20% urban population could not afford 2 thalis/day from their food expenditure.

  • After including PDS support:

    • Food deprivation is still 40% in rural & 10% in urban.

• Implication: Food deprivation is higher than World Bank poverty estimates suggest.

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4. Public Distribution System (PDS): Role & Issues

Current Status

• Provides cereals (rice, wheat) to ~80 crore beneficiaries.

• Major success: Cereal consumption equalised across income groups → richest & poorest consume similar levels.

• Problem: Subsidy misallocation.

  • Example: Top 10% rural households still avail 88% of subsidy received by poorest 10%.

  • Urban PDS is more progressive, but still reaches 80% of the population, including non-poor.

Challenges

• Over-focus on cereals (10% of household expenditure only).

• Under-provision of pulses & protein sources, critical for nutrition.

• Leakages & inefficiency → subsidies spread thin.

• High fiscal cost & large FCI stocking requirements.

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5. Policy Proposal 

• Restructure subsidies:

  • Reduce/eliminate subsidies for households consuming >2 thalis/day.

  • Trim excessive cereal entitlements → reduce costs & stocking pressure.

• Expand PDS coverage to pulses:

  • Pulses = main protein source, costly, consumption of the poorest = half of the richest.

  • Equalising pulses consumption → improves nutrition equity.

• Outcome: Compact, targeted, nutrition-focused PDS → globally significant in eliminating food deprivation.

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6. Relevance to UPSC GS Papers

GS II – Governance & Welfare Schemes

• Food Security Act 2013 → Right to food.

• PDS reform is essential for inclusive welfare delivery & SDG Goal 2: Zero Hunger.

GS III – Economy & Agriculture

• Links between poverty measurement, nutrition, & subsidies.

• Fiscal burden of subsidies vs targeted redistribution.

• Importance of agricultural diversification towards pulses.

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7. Critical Analysis

• Strengths of proposal:

  • Nutrition-sensitive (focus on protein, not just calories).

  • Rationalises subsidy, reduces fiscal burden.

  • Aligns with EAT-Lancet diet & global standards.

• Concerns:

  • Identifying & excluding “non-poor” may create exclusion errors.

  • Political resistance to reducing rice/wheat entitlements.

  • Supply chain & storage challenges for pulses.

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8. Way Forward

• Move from calorie-based poverty line → nutrition-based poverty metrics.

• Gradual shift of PDS from cereals to pulses, millets, and oilseeds.

• Technology-driven targeting (Aadhaar-linked ration cards, DBT pilots).

• Strengthen pulse production (e.g., NFSM-Pulses, MSP support, imports if needed).

• Integrate Thali/nutrition affordability index in official poverty monitoring.

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✅ UPSC Takeaway:
India may have reduced extreme poverty, but hidden hunger and food deprivation persist. A restructured, nutrition-sensitive PDS focusing on pulses & balanced diet instead of cereals alone can equalise food consumption and improve real welfare outcomes.