<P> Indian food security system, established by the Government of India under Ministry of Consumer Affairs, Food and Public Distribution is to distribute subsidized food and non-food items to India's poor . This scheme was first launched in February 1944, during the Second World War and was launched in the current form in June 1947 . Major commodities distributed include staple food grains, such as wheat, rice, sugar and kerosene, through a network of fair price shops (also known as ration shops) established in several states across the country . Food Corporation of India, a Government - owned corporation, procures and maintains the PDS . </P> <P> In coverage and public expenditure, it is considered to be the most important food security network . However, the food grains supplied by the ration shops are not enough to meet the consumption needs of the poor or are of inferior quality . The average level of consump of PDS seeds in India is only 1 kg per person / month . The PDS has been criticised for its urban bias and its failure to serve the poorer sections of the population effectively . The targeted PDS is costly and gives rise to much corruption in the process of extricating the poor from those who are less needy . Today, India has the largest stock of grain in the world besides China, the government spends Rs. 750 billion ($13.6 billion) per year, almost 1 percent of GDP, yet 21% remain undernourished . Distribution of food grains to poor people throughout the country is managed by state governments . As of date there are about 500,000 Fair Price Shops (FPS) across India . </P>

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