What is the aim of a public distribution system?

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An Intiative by Sri Chaitanya

To prevent hoarding and help poor people

To promote wheat

To promote black marketing

None of the above

answer is A.

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Detailed Solution

One of the major aims of the public distribution system is to prevent hoarding and to help poor people.
A public distribution system aims to ensure the availability of essential consumer goods within reach of the consumer at reasonable prices. The PDS is not based on consumer subsidies but on the principle of economic justice. This means that the system ensures that everyone can access a minimum of essential goods at affordable prices. But, contrary to this ideal, many choose hoarding over-sharing.This forces the government to buy more than it needs or to import more by paying above the market price. Then, when releasing these into the market, unscrupulous entities manipulate records and evade taxes and duties. The consumer subsidies the government on the one hand and pays tax evaders on the other. This adds to the miseries of the poor and increases their vulnerability in times of price rises.

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