The forces of demand and supply do not always achieve the socially desirable objectives, so it becomes necessary that the Govt, should interfere in the production and distribution of commodities.
The necessity of public distribution system in India is because of the following reasons:
- Limited resources and means of production.
- Inadequate production.
- Inadequate storage and marketing facilities.
- Corrupt practices of producers and traders i.e. hoarding and black-marketing.
- Inequality of income and poverty leading to starvation.
