Bringing the bulk of the population under a common system of entitlements is the way to reduce leakages
The reliability of the public distribution system (PDS) has improved greatly in a number of states that have a reputation for endemic corruption. In states such as Bihar, Chhattisgarh and Odisha, where leakages were as high as 50-90% in 2004-05, they are now of the order of 10-25%. This pattern, based on National Sample Survey (NSS) data, is corroborated by other sources, including the India Human Development Survey (IHDS) and field studies.
How have PDS leakages come down in these states? Greater political will, often linked to electoral politics, led to constructive reforms. Wider PDS coverage, lower prices and clear entitlements meant that many people began demanding their due. Computerization of the system made it harder for intermediaries to divert PDS grain; higher commissions enabled dealers to run a ration shop without cheating; in some states, handing over ration shops to gram panchayats and co-operatives further helped to check corrupt dealers.
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