Economics

What are the problems of the functioning of ration shops?


SOLUTION
The following problems are there in the functioning of ration shops:
(i) The PDS dealers are sometimes found resorting to malpractices like diverting the grains to open market to get better margin, selling poor quality grains at ration shops, irregular opening of the shops etc.
(ii) It is common to find that ration shops regularly have unsold stocks of poor quality grains left.
(iii) When ration shops are unable to sell, a massive stock of foodgrains piles up with the FCI.
(iv) Sometimes these stored grains are rotten away.
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