Economics · Public Distribution System Challenges
The government distributes rice and wheat through fair price shops to eligible families at subsidized rates. However, many ration dealers divert grains to the open market at higher prices instead of distributing them to target beneficiaries. Which major challenge of the PDS is reflected here?
- 1Lack of food production in the country
- 2High import duty on food grains
- 3Corruption and leakage in distribution✓
- 4Inefficiency in procurement
Correct answer
Corruption and leakage in distribution
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