As Grains pile up,India Starves…..

Team: The Innovative

Madras Christian College, Chennai

What is Public Distribution System?

Govt. of India has implemented a number of “POVERTY ALLEVIATION PROGRAMMES” in which one of the programs is Public Distribution System (PDS) procures and maintains the Food Corporation of India.

Provides food items and non food items through a network of ‘fair price shops’ to the vulnerable sections of the society at reasonable (subsidised) prices.

Major problem faced by the FCI

What is Public Distribution System?

• The Targeted Public Distribution System (TPDS) was introduced with effect from June 1997.

• Under the targeted public distribution system, there are three kinds of ration cards: Antyodaya cards (for the poorest of the poor), BPL cards (for those below poverty line) and APL cards (for all others).

Rice Wheat

Rural Urban Rural Urban

2004-2005 35,928,158 8,008,817 16,197,120 3,545,888

2009-2010 63,321,151 15,129,050 44,697,283 12,988,843

Number of Households depended on PDSRise in Consumption Levels observed keeping the population growth in mind.

How it works?

Products are distributed

from the warehouses according to

quota of various FPS/

Ration Shops.

Step 4 Distribution

Products are stored in

various FCI Warehouses

across the nation

Step 3 Storage

Products collected by

the FCI is subsidised & allocates the

quantity to States.

Step 2

Collection

Farmers sell their

products either to FCI or to private

people

Step 1Farmers

Leakages

Loss in quality, quantity& distribution.

Increased sale of subsidized food products to Black markets.

Lack of sales from APL card holders causing Large quantities of subsidized goods to perish

Losses during storage caused due to unscientific warehouse storage system practiced by food cooperation of India

Incorrect identification of BPL families

Bogus ration cards

Lack of transparency and accountability

Malpractices in Ration Shop

Public Distribution in Media..!!!

What the common man has to say!

Preventing leakage: Public level

Public Body rating Efficiency : Public body formed by the government to rate the efficiency of PDS.

Increased participation in PDS : Encouraging the public to use PDS effectively by improving the quality of the products.

Helping FDA & TACFI*: People must actively participate in helping the FDA & TACFI to minimise malpractices & corruption within the system.

Regular usage of Ration Card: Active usage of Ration Card especially by APL card holders to make use of the facilities provided by the government.

FDA- Food and Drug AdministrationTACFI – The Anti-Corruption Federation of India

Preventing leakages: Government level

• Modernising PDS: This include several steps including Smart Card, Computerised processing, Non use of Smart Card leaves it Invalid etc. to avoid leakages.

• Shift in Distribution: A action has to be taken to limit Ration Shops in regions having High Income Class people who doesn’t use these services & thus will help in increasing number of shops in the regions were it is required.

• Transparency: The entire process of FCI must be transparent & available to the public .

• Distribution of Food Stamps: This will reduce the India's dependence on buffer stock for price stabilization and in turn reduce cost.

• Checking sale to black market : The above mentioned steps will help in checking sale of subsidised goods to black market.

Modernising Public Distribution System

• Use of Smart Card: Helps in making the system Foolproof & thus minimising the leakages as in Chandigarh UT and State of Haryana.

• Digitalizing the entire process: Digitalizing the entire process as in the state of Chhattisgarh, Assam & Delhi.

• Use of Biometric Ration Register Machines which checks leakage.

• Computerised quality checking till the distribution: Computerised quality checking will help in accumulation of quality food products.

• Improved packing system: Help in preserving the products for longer time & limit the use of loose products limiting malpractices.

Modernising Public Distribution System

• First In First Out (FIFO) could be practiced in the case of food grains to avoid wastage.

• GPS enabled Tracking System for transportation for enhanced monitoring of the Goods Transferring process & limiting the chances of unlawful unloading.

• Information about availability of food grains to be disseminated through SMS / Internet to enable social audit.

• Mobile Fair Price Shops providing Food & essentials at street level thus reducing the need for Store Houses & convenient for working class people.

Mobile Triveni Supermarket, Kerala

References

• PDS - Department of Food and Public Distribution, http://dfpd.nic.in/

• Public Distribution System (PDS), in 10th Plan at Planning Commission

• Public Distribution System: Introduction at Right to Food Campaign

• Public Distribution System, IIM, Ahmedabad by Arnab Saha

• 5.17 The Public Distribution System, Budget of India, 2000

• Newspaper reports from New York Times, Times of India, Hindustan Times, The Hindu