Setting Public Distribution System Right: Touchstone Case for Direct Benefit Transfers – Part II

In this note on the Public Distribution System (PDS), we compare three alternative distribution models: biometric authentication through Point of Sale (PoS) devices, food coupons, and Direct Benefit Transfer (DBT).

In the part one of this two-part series, we discussed what ails the Public Distribution System (PDS) in India. In addition to quick fixes, other alternatives have been tested. In this Note, we compare the three of these alternative distribution models: 1) Biometric authentication through Point of Sale (PoS) device 2) Food coupons 3) Direct Benefit Transfer (DBT). We believe that DBT is the way forward for PDS. However, much remains to be done to ensure its successful implementation. As this may take time, in the short term, implementing a mix of “Biometric Authenticated PDS” and “Food Coupons” in various geographies seems to be a great idea.

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