Christite1 1

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.

.

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been
replaced
by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
given@Rs.5.65
per
kg
(35
kilos/
month)
or

Wheat

has
to
be
distributed@Rs.4.15
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.

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