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The Public Distribution System (PDS) is the key element of the Government's food security system in India. It is an instrument for ensuring availability of certain essential commodities at easily affordable prices especially for the poor. The Government, via the Food Corporation of India (FCI), procures and stocks foodgrains which are released every month for distribution through the PDS network across the country. In addition to sugar, edible oils and kerosene, foodgrains, mainly rice and wheat, are distributed to the public via a network of Fair Price Shops (FPS). The system of procurement is also used by the Government of India to provide minimum support prices to the farmers so as to stabilise farm output and income. To begin with, in the sixties efforts were made to procure rice and wheat not only for normal distribution through Fair Price Shops under the PDS but also to maintain buffer stocks, which were built in the years of good production to tide over the periods of lean production. In the eighties, given the increases in the foodgrains production and the resilience in the agricultural production scenario, the Government of India decided to operate a system whereby certain norms were fixed regarding the quantities to be held by the Food Corporation of India at different points of time during the year, thus merging the stocks meant for normal distribution and buffer stocks.
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