1. Public Distribution System of
IndiaIndia
- Problems and Solutions
By :
Ankit Rustagi
Disha Gupta
Ravi Chandrakar
Richa Srivastava
Ritesh Garg
IIM Bangalore
2. Agenda
• Global Hunger Index
• What is PDS?
• History of PDS in India
• Current Problems of PDS
• Solutions• Solutions
– Revamping the existing system
– Community Kitchen – Business model
– Public Private Partnership
• Conclusion
• References
3. Global Hunger Index
GHI = (PUN + CUW+CM)/3
Where
PUN = proportion of population undernourished
CUW = prevalence of underweight children below five
CM = proportion of children dying before the age of five
Interpretation of Results
0 - Best Score
< = 4.9 - Low Hunger
Between 20 and 20.99 - Alarming
>30 - Extremely alarming
5. What is PDS?
Food Security System
Distributes subsidized food and non subsidized non food
items to India’s poor
Central
• The farmers sell the
agricultural produce
to the Central Govt
Farmers
• Responsible for
procurement,
storage,
transportation and
bulk allocation
Central
Government
• Distribution to the
poor through Fair
Price Shops
State
Government
• Consume the
subsidized food grain
with the help of
ration cards
Poor
6. History of PDS in India
Targeted PDS, 1997
Antyodaya Anna Yojna, 2002
Revamped PDS, 1992
Targeted PDS, 1997
7. Current Problems of PDS
• Degraded quality of food grain and leakage,
mainly during supply
• Replacement of good stock by bad stock in
shopsshops
• Bogus cards
• Lower salary of PDS distributor
• Identification of Beneficiaries
• Regional allocation and coverage
8. Solutions
• Revamping the existing system
– Advantages and Challenges
• Establishing community kitchens
– Advantages– Advantages
• Public Private Partnership
– Advantages
9. Revamping the existing system
Tag food grain for
weight/ date and
unique code
User swipes his
card and obtains
exact allocated
grain
Install sensors in each truck
to track, find leakages and
idle time
Stores with electronic
containers and swipe
machines on container. Grain
comes out only on swiping
Data collected by
servers and
transferred to
analysis team
10. Revamping the existing system
Advantages:
•Proper tracking of all the goods in transit
•No chance of leakage
•No option of cheating because of automatic storages
•Better accountability
Challenges:
•Huge infrastructure investment
•Issue of card to each and every person
•Support of the PDS distributors
•Collaboration with the transport units
11. Community Kitchen – Business Model
State
Government
Kitchen to
Home
Distribution
RuralHouseholds
Village food
storage
house
COMMUNITY
KITCHEN
Distribution
Channel
RuralHouseholds
12. Business Model
State Governments – responsible for distributing food grains
to Village storage houses
Village Storage houses – Sell food grains to community
kitchen
Community Kitchen – Large scale kitchen – emulating theCommunity Kitchen – Large scale kitchen – emulating the
model of Akshaya Patra Foundation – preparing healthy meal
for villagers
Distribution of cooked food to the villagers
13. Advantages
• Elimination of middle men – Ration shops
• Easy to check the leakage of food
• Healthy nutritious food available
• Increase in womens’ employment
14. Public Private Partnership
• Partnering with Walmart or Big bazar
• Contract outsourcing of full PDS system from
start to end
• Contract should be 5-10 years• Contract should be 5-10 years
• Private partner should build all the infrastructure
• Government will provide money so that the
partner earns normal profit
• Takeover of the whole system by government at
the end of the period
15. Advantages
• Efficient System will be built by the private
partner
• Quality work and process will be there
because of Brand name of private player is atbecause of Brand name of private player is at
stake
• Private player will gain by the scale of the
operation
• Government gets a fully efficient PDS at the
end of contract
16. Conclusion
1. Tagging the food grains and installing sensors on
trucks
2. Community Kitchen
3. Public Private Partnership3. Public Private Partnership
The measures proposed will not only help in curbing the
leakages but also will ensure the distribution of nutritious food
to the poor.
The solutions will add to the employment generation in rural
households and add value to the Indian economy
17. References
Civil Society Engagement and India’s Public Distribution System: Lessons from the
Rationing Kruti Samiti in Mumbai , Rob Jenkins, Anne Marie Goetz
Food Security and the Targeted Public Distribution System in India , Dr. Ruth Kattumuri
http://en.wikipedia.org/wiki/Public Distribution System
http://techalmanac.blogspot.in/2009/11/interchangeability.html
http://www.commercialmotor.com/big-lorry-blog/volvo-sets-up-joint-venture-wi-1http://www.commercialmotor.com/big-lorry-blog/volvo-sets-up-joint-venture-wi-1
http://blog.milesweb.com/important-web-hosting-terminology/
http://thane.olx.in/fully-furnished-145-245-345-445-545-seats-call-center-bpo-kpo-
space-available-on-ren-iid-416715763
http://xtremezooom.blogspot.in/2010/11/indian-villagers-meeting-hope-it-will.html
http://mumbaimag.com/wp-content/uploads/2013/07/Swipe-Cards.jpg
http://www.forbes.com/fdc/welcome_mjx.shtml
https://knowhow.com/article.dhtml?articleReference=1293&country=uk