I disagree very strongly. Monitoring food distribution scales really well. You add monitors. That's it. If you want concrete examples of effectively monitoring things over large areas I can provide some.
If the monitors themselves are corrupt then the problem is not that somehow monitoring big things is impossible. The problem is corruption.
Edit: For sillysaurus, because he asked. Walmart effectively monitors food distribution over the US. Power companies effectively monitor the power grids over large areas. Electoral commissions (in some countries) effectively monitor elections over large areas.
Short of a massive cultural shift (the kind that only happens when millions of people get murdered), Indian society is what it is. Think of this as a game theory problem - you can't change the players, you can only change the rules of the game, and even that with only limited authority. What approach will accomplish the desired goals?
As an outsider, I get the feeling that an awful lot of Indian public policy starts with the assumption that humans are dutiful and honest. That seems like a problem.
Besides India is such a big country that monitoring these things is nearly impossible. With corruption rampant and lack of accountability, these schemes are designed to fail from their very inception.
What these people need is not food, may be they need it at the moment. But what these people need is a way to make a decent living, which nobody shows them how to- And often we come back and talk about hunger.