Manthan Topic : Improving Reach and Efficiency Of the Public Distribution System

Lack of Integrity in Providing Public ServicesAn approach which would lead to social inequality and equal distribution of public services

T E A M D E TA I L S

A N K I T M U N S H I , C H E TA N G U P TA , H I M A N S H I A G G A R WA L , N I D H I V I G , S H I V E N D U S H E K H A R

In spite of spending a huge amount of Government Revenue on Public distribution services the main target of the society is still not benefitted

Scope of the problem:

Poor supervision of FPS and lack of accountability have spurred a number of middlemen, who consume a good proportion of the stock meant for the poor. There is also no clarity as to which families should be included in the BPL list and which excluded. This results in the genuinely poor being excluded whilst the ineligible get several cards. Awareness about the presence of the PDS and FPS to poverty-stricken societies, namely the rural poor has been dismal.

Cause:

Corruption is the biggest cause for social inequality in our country. The resources are not being channelized to the right direction leading to concentration if power in hands of the influential section of the society.

Improper identification of families below poverty line which leads to depriving them from the intended benefits of PDS.

Reasons for choosing the above cause:

PDS is a social welfare and anti-poverty programme which contributes towards the welfare of the below poverty line (BPL) families by supplying essential commodities like Rice, Wheat, Sugar, Kerosene at reasonable price.

Unequal distribution of necessities to the poorer section of the society has led to increasing number of malnutrition and death by starvation incidents in the country.

Solutions Proposed

Vigilance squad should be strengthened to detect corruption, which is an added expenditure for taxpayers.

Personnel-in-charge of the department should be chosen locally.

Margin of profit should be increased for honest business, in which case the market system is more apt anyway.

F.C.I. and other prominent agencies should provide quality food grains for distribution, which is a tall order for an agency that has no real incentive to do so.

Frequent checks & raids should be conducted to eliminate bogus and duplicate cards, which is again an added expenditure and not fool proof.

The Civil supplies Corporation should open more Fair Price shops in rural areas.

The Fair Price dealers seldom display rate chart and quantity available in the block-boards in front of the shop. This should be enforced.

Decentralization of procurement and distribution.

Panchayat shoud be involved in the PDS system.

FCI and involvement of private sector farmers’ cooperatives.

SHGs, etc. in procurement and distribution.

Merits of the solutions

No centralized authority so issues can be sorted out at local level and benefits provided to poor.

With no middle man changes of pilferage are less and supplies would be regular.

Poor should be knowing about the fair prices shop and what the “Fair Prices” are.

Implementation of the Solution

Proper identification of the families below poverty line.

UID/Adhaar can be used for this.

Strict guidelines to be implemented for identifying and dealing with the distributors and retailers of the PDS.

Any family that wants to avail benefit of the PDS system should use Adhaar card for all the purposes.

Stakeholders

Government

Food Corporation of India

UID Authority of India

Village Panchayat

The benefitting family

Leveraging existing Government Infrastructure

Supply Chain Management of Government

District Collectorate

Village Panchayat

FCI Cold storages

Financial and Human resources required at each stage

Grants from the government.

No particular Human resources as such, since it should be more of a Village community activity.

Impact of the Solution

Providing food grains and other essential items to vulnerable sections of the society at reasonable (subsidized) prices;

To have a moderating influence on the open market prices of cereals, the distribution of which constitutes a fairly big share of the total marketable surplus; and

To attempt socialization in the matter of distribution of essential commodities.

Criteria to measure the impact of the Solution

How much benefit is reaching to the people?

How much less pilferage is happening?

Scalability

Can be utilized at macro and micro level

Sustainability

Can be sustained with proper government coordination.

Appropriate Monitoring mechanism

Government regulatory authority

NGOs

Challenges and mitigating Factor

Social inequality in the society

Corruption

Dishonest