You've read through the entire article which indicates huge levels of corruption, and your conclusion is simply "Giving away things for free/subsidy is the root cause of the problem"?
Corruption is happening inside this free food distribution program.
But why do those people even need free food? Unfortunately this question is never asked. Those people don't have productive jobs to afford it. That is why we always keep hearing of these stories.
Our focus must be to provide them jobs so that they can buy it, instead of making it a free stuff.
The immediate problem here is corruption and a non-functioning law enforcement and court system. The pervasive root problem is actually that a fair amount of Indians don't have the disposable income to create enough jobs for everyone, or to provide for the sick, elderly, or disabled in their communities.
And letting people die or suffer from malnutrition, whether they're productive or not, is just sick.