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Christite1 1 Presentation Transcript

  • 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    
  • 2. 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.  
  • 3. Public  Distribu,on  System  Flow   —  .   FARMERS   CENTRAL  GOVERNMENT   STATE  GOVERNMENT   DISTRICT  ADMINISTRATION   BLOCK  ADMINISTRATION   GODOWNS   FAIE  PRICE  SHOP   BENEFICIARY  
  • 4. 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.  
  • 5. .   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  Ø   The  fourth  phase,  from  1991  to  the    present,  is  one  in  which  the  policy  of   universal  PDS  has  been  replaced  by  well  groomed  targeted    policy  which   was  quite    in  line  with  the  unique  objectives  of  economic  liberalization.  
  • 6. .   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  .  
  • 7. 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.      
  • 8. 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.  
  • 9. 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.  
  • 10. 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.