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TRANSCRIPT
By-‐TEAM CHRISTITES Anusha Dwivedi
Krupa Joshi Bhimanandham Jaya Madhuri
Earlu Sirisha Santanu Das
Batch-‐MBA-‐Christ University Institute of Management(CUIM) Bangalore,India
Objec&ves of Public Distribu&on System (PDS) Ø Providing food grains and other essential items to vulnerable sections of the society at reasonable (subsidized) prices.
Ø To put an indirect check on the open market prices of various items.
Ø To attempt socialization in the matter of distribution of essential commodities.
Public Distribu,on System Flow � . FARMERS
CENTRAL GOVERNMENT
STATE GOVERNMENT
DISTRICT ADMINISTRATION
BLOCK ADMINISTRATION
GODOWNS
FAIE PRICE SHOP
BENEFICIARY
The Targeted pubic distribution system is one of the largest welfare programme for the citizens of India. It is basically projected to supply subsidized food to the poor households residing in the nation. It is well known that a large piece of foodstuff meant for the PDS is sold in the black market, and that this sort of dishonesty is on the rise.
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Ø For the sake of clarity, the history of PDS in India can be broadly classified into four phase. The first phase was from its origins to 1960 when the distribution through PDS was usually dependent on imports of food grains from foreign countries.
Ø The second phase was from 1960 to 1978. It was the phase when the major organizational change took place. For example in response to the food crisis of the mid-‐1960s, the food security, procurement and storage was taken good care by the Government of India.
Ø The third phase, from 1978 to 1991, was effectively supported by domestic procurement and stocks within the country.
Ø The fourth phase, from 1991 to the present, is one in which the policy of universal PDS has been replaced by well groomed targeted policy which was quite in line with the unique objectives of economic liberalization.
. Food grain entitlement under the TPDS For families living below the poverty line (BPL) Rice has to be [email protected] per kg (35 kilos/ month) or Wheat has to be [email protected] per kg (35 kilos/ month) For Antodaya families(Antyodaya Anna Yojana (AAY), a central scheme, was
launched in December 2000 for one crore poor families. Rice @Rs.3 per kg (35 kilos/ month) or Wheat @Rs.2 per kg (35 kilos/ month). For families living above the poverty line (APL) Rice @Rs.8.30 per kg . Wheat @Rs.6.10 per kg. Other Commodities: Sugar (Rs.13.50 per kg), Kerosene (approx Rs.13.50 / lit) For Annapurna families(the old citizens of 65 years of age and above who do not
get benefit under Indira Gandhi National Old Age Pension Scheme.) Ten kgs of free food grains every month. Note: Rice and Wheat prices are Central Issue Price .
Ø Consumption from PDS: Ø In some parts of India food is being distributed from Food Corporation of
India(FCI) go -‐-‐-‐ downs to Fair Price shops that are within 25km radius. Ø Honest Efforts are made to monitor the movement of stocks from Food
Corporation of India depots to the operational godowns and then to PDS outlets. An efficient and unique route chart is followed for movement of the food grains from the godowns and shops which are being inspected by various teams so that the food grains reach the common man.
Ø These shops are generally owned by the government, a government undertaking, co-‐operatives, the proprietor of a firm or even by private persons (individually or jointly).
Ø A unique procedure was followed while classifying a “PDS” . Ø It was seen that PDS purchases were 14.6% of total consumption of
wheat in rural India and 9% in urban India. Ø For example, in case of kerosene, it was sold at kerosene depots at
controlled prices under PDS.
The Challenges Ø PDS Leakages-‐A large number of families living below the poverty line have not been enrolled and therefore do not have access to ration cards.
Ø Scale and Quality of Issue-‐Many FPS are open only for a few days in a month and beneficiaries who do not visit the FPS on these days are denied their right.
Ø System Transparency and Accountability-‐The system lacks transparency and accountability at all levels making monitoring the system extremely difficult.
Ø Grievance Redressal Mechanisms-‐There are numerous entities like Vigilance Committee, Anti-‐Hoarding Cells constituted to ensure smooth functioning of the PDSsystem. Their impact is virtually non-‐existent on the ground and as a result,malpractices abound to the great discomfiture of the common man.
SOLUTIONS Ø Roaming Ration Cards providing an opportunity to short-‐term migrants to move their ration cards to their new area or work.
Ø Direct Cash Transfer Program where the subsidy will be transferred into the bank account of the beneficiary.
Ø Choice of Fair Price Shops should improve quality of service and this solution allows the incorporation of either limited or full choice of FPS.
Ø Food Stamps can be introduced allowing competition from existing food shops and increasing the reach of the TPDS network.
MORE SOLUTIONS -‐ Ø IT based solution approach-‐Bogus cards can be substantially weeded out and a mechanism put in place to positively confirm and track the individual beneficiary offtake on a monthly basis, the problems relating to PDS leakages, Transparency and Transportation would get resolved, as leakage would become more difficult to hide.
Ø Creation of a Beneficiary Database-‐The state government should create a high quality beneficiary database, preferably commencing from a house-‐to-‐house survey. The State government can carry out the enrollment of identified family members by enrolling them into the UID (Unique ID) program.
Ø Individual Beneficiary Tracking. Ø Information, Communication Technology Infrastructure. Ø PDS & UID -‐ A Synergic Partnership.
