1. In order to help the poor strata of the society, the government provides food grains from the Buffer Stock at a price much lower than the market Price.

2. This subsidies price is known as the Issue Price.

3. It is very helpful to provide food to people during critical situations such as calamity. 

1. The food procured by the FCI is distributed through government regulated ration shops among the poorer section the society. This is called the Public Distribution system.

2. Ration shops are present in most localities, villages, towns and cities. There are about 5.5 lakhs ration shops all over the country.

3. These ration shops are known as Fair Price Shops. These shops keep stock of food grains, sugar, and kerosene oil for cooking. 

1. PDS deals are found restoring to malpractices like selling the grains to the open market to get the better margins.

2. Sometimes they sell poor quality grains at ration shops.  

3. They open their shops irregularly without considering the problems poor people.

4. Ration shops regularly have unsold stocks of poor quality grains left.

5. When ration shops are unable to sell, a massive stock of food grain piles up the Food Corporation of India.  

6.    FCI go-downs are over flowing with grains, with some rotting away and some being eaten by rats and insects.

7. There is a very little difference between the prices of goods sold at the ration shops and at the shops of market. 

1. The Public distribution system has faced severe criticism on several grounds. A. Instances of Hunger are prevalent despite overflowing granaries.  

2. FCI go-downs are over flowing with grains, with some rotting away and some being eaten by rats and insects.  

3. There is a general consensus that high level of buffer stocks of food grains is very undesirable and can be wasteful.

4. The storage of massive food stocks has been responsible for high carrying costs.

5. Corruption by FCI officials.

6.    Black Marketing by PDS dealers