- PDS:
- In-kind subsidy delivery (physical food grains).
- Beneficiaries receive food grains at subsidized prices.
- Prone to leakages and corruption in physical distribution.
- Requires extensive physical infrastructure (FCI, FPS).
- DBT (Direct Benefit Transfer):
- Cash transfer delivery.
- Beneficiaries purchase food at market price, subsidy transferred to bank account.
- Reduces leakages and diversion.
- Increases efficiency and transparency.
- Empowers beneficiaries with choice.
- The text mentions that for fertilizer subsidies, DBT is different from conventional DBT (like LPG).
- For fertilizers, farmers still receive at subsidized prices, and companies get subsidy after sale via PoS.