1. Limited benefit to poor: -Under P.D.S. food grains are provided to ration card holders only. These ration cards are issued on the basis of residential address. So, seasonal migrant workers and homeless people are not to get its benefit.
2. Regional disparities: -Some regions are well developed while some are less. In some states, large number of families is below poverty line. But, the off-take of food grain through P.D.S. is not accordingly. Due to this regional imbalance, most of the people are deprived from the benefits of P.D.S.
3. Urban bias: -Nearly, 75% fair price shops are in the rural areas but, the off-take of food grains through P.D.S. is more in urban areas. The transport system in villages is not as efficient as in cities. At times, food grains and kerosene are not available in most of the fair price shops in rural areas.
4. Inefficient Food Corporation of India: -It is the duty of Food Corporation of India to supply food grains for distribution through fair price shops. But there is some inefficiency. Excess stock of food grains is not stored properly. Therefore, it creates scarcity of food grains even after an increase in production.
There is a pressing need to eliminate these drawbacks.