PDS is a very effective instrument of government policy due to the following reasons
(i) It safeguards the interests of the farmers by providing them remunerative prices for their food grains.
(ii) It ensures distribution of food grains at affordable prices to all people, ensuring food security to the population. Different levels of subsidised food grains are made available for people in different categories of poverty.
(iii) The PDS maintains an adequate level of operational and buffer stocks of food grains to ensure stocks are available to tide over any calamity or shortage in a particular region of India.
(iv) It allows the government to intervene in the food grains market when required for price stabilisation.