Professional Documents
Culture Documents
PDS OVERVIEW
Commodities namely wheat, rice, sugar and kerosene distributed
Some States/UTs also distribute additional items such as cloth, exercise books, pulses, salt and tea. Consumes around 1% of the countrys GDP Covers upto 25 % of the poor households Only 41 % of the food grains released by the government reach their target, Nov 2012 WB report TARGETING
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ROLES
CENTRAL GOVT.
Obtaining supplies, procurement &imports Procurement price, issue prices to the state & subsidies;
STATE GOVT.
Receipts of central allocations; Procurement in the state; Purchases from other states; Warehousing; Determination of: Consumer issue price; Commodity coverage; Ration scales; Rules for issue of ration cards; FPS license; Profit margins to FPS; Periodicity of sale; Allotment to district and transport arrangements.
LOCAL AGENCIES
Lifting stocks, warehousing Issue of ration cards; Licensing of FPS dealers; Arranging lifting by FPS dealers; Enforcement, inspection, vigilance
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DECISIONS
CENTRAL GOVT.
Commodity Coverage; Total PDS supplies, procurement by imports/exports+ inventories; Size of covered population: exclusions; Nature of PDS supporttotal or supplementary; Preferential treatment to area or population group; Difference between open market price by PDS issue price; Size of subsidy.
STATE GOVT.
Matching of supplies with needs by intrastate procurement; Adequate and well-dispersed warehousing; Capacity to buy from other states; Inclusion of additional goods; Appropriation of issue price in relation to open market price; Commodity Coverage; Periodicity; Ration scale; Cost by ease of getting ration card; Location and behavior of FPS; Adequacy and profit margin; Adequacy and regularity of allotment; Public, private or cooperative transport of stocks to FPS; and Transport charges, zoning for the purpose.
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LOCAL AGENCIES
Delivery to FPS of assured quality and quantity; Proper storage by FPS; Cost and case of betting; Variation in state govt. determined scales; Ensuring regularity in lifting of stocks by FPS for round the year availability; Need for reserve stocks; ; rate to state deliveries to FPS; and Govt. monitoring of stocking and sales performance of FPS.
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FAIR PRICED SHOPS (FPS): sell commodities to consumers at government subsidised rates
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General Challenges
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Errors of exclusion that result in beneficiaries falling out of the state safety net. Corruption by private dealers running the Fair Price Shops under the PDS. Corruption and leakages in the paddy procurement process and Leakages during the transportation of food grains to the Fair Price Shops. Limited reach Delay in monthly allocation Delay in lifting and transportation Diversion/leakages Fake ration cards Lack of accountability at all levels Lack of community participation Unviable to run FPS- unviable self sustainability Lack of transparency
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CHHATTISGARH STATS
Delivery to 34.53 lac cardholders (per month)
1,26,000 tons of Rice 41,700 tons of Wheat 15.5 million litres of kerosene 7000 tons of iodized salt 4,600 tons of sugar
Increase in the Central govt. mandated figure of 42 % ( 19 lakh BPL households) to 74 percent (over 36 lakh households)
1532 paddy procurement centres of the Central Cooperative Bank Cooperative Societies (PACS) 50 storage centres of Marketing Federation (MARKFED) 100 Civil Supplies Corporation distribution centres 35 FCI Rice receiving centres
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and
Primary
Agricultural
Objective of Initiative
Enhance transparency in operations to mitigate leakages and diversion of funds. Improve the delivery mechanism so PDS commodities reach the target population Involve citizens in the monitoring process to enhance accountability
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Initiative: DIGITISED PROCUREMENT PROCESS 5 servers maintained by (NIC) for hosting all concerned applications and
managing the entire database. Farmers are registered online and once paddy is procured from them, they are given computer generated receipts. Paddy procurement & issuing is electronic
Procured paddy is transferred to the 50 computerised storage centres of MARKFED, Receipts of paddy are entered on the online interface. MARKFED issues the paddy to millers, FCI and other storage centres. All issuance is done through online method
Registration of mills in online system to avoid the issuance of paddy to dummy mills. Cheques for payment to farmers and delivery orders for movement of paddy from the procurement centres to the miller and storage centres of MARKFED and FCI, are printed in real time.
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With computerisation of ration cards, shop-wise allocations have also become automated. Per card allocations are fed into the computer at the State level.
Amount of PDS commodities to be delivered is calculated on the basis of: Allotment of ration cards in that FPS stock and sale figures of the previous month To increase transparency- signs painted outside every house, with the details about familiy. This was an innovative approach to name and shame households that had Antyodaya ration cards but did not belong to the category of the poorest of the poor
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The portal contains all information related to the scheme including a list of ration card holders, FPSs, and details of transport and sales of PDS commodities.
Information on paddy procurement is also made available on the website, which includes farmer-wise data detailing the amount of paddy procured from each farmer and money paid.
Citizens can register as active monitors by submitting their e-mail ids and/or mobile numbers online.
An e-mail/ SMS is sent to all registered citizens. Each message contains
Truck number Quantity of PDS commodities being sent by the truck Date and time of dispatch & expected date of arrival
If commodities do not arrive at the FPS in full within a reasonable time period, citizens can register their complaint on the website or call center
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Special, yellow painted trucks are used; identification and monitoring by villagers
easy
Mandatory for food grains to reach ration shops by the 6th of every month & celebration of Chawal Utsav on 7th, helped plug leaks as well as ensure the timely distribution of rations
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Many households felt that in addition to the foodgrains provided at their ration shops, the government should also supply subsidised dal (lentils) and cooking oil. As rice is the staple food in Chhattisgarh, many households were unhappy with the 10 kg of wheat that is provided as part of the 35 kg food grain entitlement and wanted it to be replaced with rice. Households with more than four members suggested that food grain entitlements should be based on the number of individuals because 35 kg was not adequate for their monthly consumption
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Debatable Issues
Use Cash Transfer Instead of PDS Advantages of cash Transfer
Independence Cost of overall system will be reduced
Counter Points
Remoteness of banks and markets Lack of trust in cash transfer due to delay in payment;not good experience in scheme like MNREGA. During the lean season, prices of foodgrains in the open market rise due to erratic supply and the local ration shop is often the only hope for many What bothered most respondents was the thought of giving up the food security offered by the PDSfor unpredictable cash transfers. This was particularly true of women, who worried that they would lose control over household budgets because it would be men who travel outside the village to withdraw money from the bank and buy things for the house. Many felt that the money intended for buying food would be spent on non-food items, particularly alcohol
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Recommendations
Linking TPDS with UAID (Aadhar). Use of Biometric Ration Card to prevent forgery. Coupon based transfer of subsidy by using Direct Cash Transfer through Post Offices & Banks using internet banking. Deployment of auto scalable Cloud Solution, which guarantees unlimited resources allocated as per the need.
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Semi-Privatisation of PDS
SEMI-PRIVATISATION OF PDS
ADVANTAGES
In present scenario government is the main controlling body in the existing PDS system In our concept we introduce a private company which acts as medium between the consumers and the government Its functions are as follows: 1. Maintenance of mobile portal 2. Provision of subsidy 3. Management of funds 4. Quality control 5. EAAY Scheme( Extreme Antayodaya Scheme)
Cut down on Corruption: By introducing a private company we provide transparency and cut down corruption Employment: The company employs people which create a great opportunity for unemployed Subsidy control: The regulation of subsidy is done to relieve the government from unwanted losses Quality Control: Food grains are given a quality check and are distributed under a standard label
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EXISTING SYSTEM
PROPOSED SYSTEM
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Government Reforms
1.Food products packagers, especially those food products that contains necessary nutrients for sustaining a good health e.g. wheat, rice, sugar, wheat flour etc., should be given subsidy or asked to give (under a proper body) by relieving taxes. For example manufacturing taxes, service taxes etc.
2.A government body must be formed to manage and control these manufacturers.
3.Conduct tenders to give control to private companies.
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The Private Company in association with an NGO will conduct this programme.
The Private Company must employ a group of people to provide a specific amount of grains to those who does not hold even an AAY card.
This amount of grain is that which is prescribed by government under AAY scheme.
These employed people must be given salary via Private Company . Private Company must provide the list of families/peoples covered under EAAY scheme on their website. The government could also employ the workers who work under NREGA or other government scheme which could help the government to cut the costs and invest more in the P.D.S.
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Record Keeping
Every BPL and AAY card holder must be given a unique account number IRA (Interactive Ration Account). Through such record keeping system we can record the information of the families who are part of such scheme and also hold a ration card. The Private Company must recharge every IRA number with money per month per family. Private Company must use Fair Price Shops or the companys Regional Offices for creating their area of work for supplying the grain. It must include IT services to provide accessibility to the system. This recharge is calculated on the basis of difference between market and fair price that government provide to the people. At present the government tries to lowers the bar by providing subsidies to the ration card holder . But what we are doing is that the subsidy must be directly provided to the people in form of their recharge and they can easily purchase only food items from it.
Market Price of goods - Ration Card Rates = Subsidy by Govt. = Recharge of IRA
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CONCEPT RISKS
SOLUTIONS
The government would have to only relieve some figures of taxes from the manufacturing and packaging companies and provide a start up cost and the rest work would be done by the Private Company.
In our system we have given a good offer to Private Companies to start their business.
Shops are given benefits on products they purchase as well as target completion wages.
Quality control?
It would not be a problem as buyers can purchase any brand of their choice. Also the Government Body would keep a check of the quality of products distributed.
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The Amul cooperative model could be followed in the agricultural sector as it could trigger a big upswing in agricultural development.
Small farmers through their co-operativisation could easily transform the agricultural economy. Moreover, there will be no wastage of food grains and other commodities which at present goes up to the tune of one-third of the total produced in India.
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THANK YOU
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