Step 1: Understanding the Concept:
National food security mechanisms under the Targeted Public Distribution System (TPDS) introduced differentiated subsidized entitlement tiers.
Step 2: Detailed Explanation:
1. Statement I: The Government of India launched the Targeted Public Distribution System (TPDS) in June 1997, shifting from universal PDS to a targeted system where beneficiaries were formally categorized using the Planning Commission's state-wise poverty line criteria. Hence, Statement I is true.
2. Statement II: Under TPDS design, subsidized foodgrains were allocated for both Below Poverty Line (BPL) families (at heavily subsidized issue prices) and Above Poverty Line (APL) families (at economic cost rates), along with Antyodaya Anna Yojana (AAY) for the poorest of the poor. Hence, Statement II is true.
Step 3: Final Answer:
Thus, Both Statement I and Statement II are true, corresponding to option (A).