New Delhi, Nov 18 (HBTV): A recent report by the Indian Council for Research on International Economic Relations (ICRIER) has unveiled a troubling inefficiency within India's Public Distribution System (PDS). Nearly 29 per cent of grains supplied by the Food Corporation of India (FCI) and state governments fail to reach the intended beneficiaries.

This massive shortfall translates into a staggering financial loss of Rs 69,108 crores, equivalent to approximately 20 million metric tons of rice and wheat.

Drawing from data collected through the Household Consumption Expenditure Survey (HCES) and FCI’s monthly offtake figures between August 2022 and July 2023, the report highlights that despite improvements, the leakage of subsidised grains remains substantial, causing both financial and logistical strain.

State wise data of PDS leakage shows that, North-eastern states Arunachal Pradesh, Nagaland, and Gujarat are the top three states in terms of PDS leakage. Meanwhile, in absolute quantity of grains leaked, Uttar Pradesh tops the list. The report attributes these shortfalls to the lack of digitization of distribution system as one of consequential reasons for higher leakage in the north-eastern states.

On the other side, States like Bihar and West Bengal saw significant reductions in the PDS leakage in the past decade from 2011-12 to 2022-23. In Bihar, leakage dropped sharply from 68.7 per cent to 19.2 per cent, whereas West Bengal achieved a decrease from 69.4 per cent to 9 per cent.

"Despite the implementation of digital tracking system, leakage persists, highlighting the need for not only improved monitoring but also structural reforms to address PDS corruption." the research report noted.