A Brief Overview With Solution
PDS Accounts For 2.4% Of National GDP And Works with a network of
0.46 million FPS distributing SFA’s among 222.20 million families..
57% of the PDS food grain
does not reach the intended
people (UIDAI, 2009)
For every ₹4 spent on PDS,
only ₹1 reaches the poor
76% of population had
nutrition consumption below
the norm of 2400 calorie
All is not well in PDS
Main Reasons For Vanity Of PDS..
• Approx 20746 Crores₹ Loss In PDS in Corruption
Presumptions: Corruption,Bribe and Loose System
Viability Of FPS
• Only 39 % Of FPS Make Positive Net Income Over
Presumptions: a) Strength Of Ration Card Of FPS
b) Door Delievry and Rentals
c) Margins and turnovers
d) Ignorance of consumer interest
Consumer Offtake And Its Determinance
Causes: a) Lack Of Awareness
b)Problem In Delievery Mechanism
c)No Public Access for Complain
d) Offtake By APL Is Negligible
Leakage and Diversion
36.38% Leakage And 21.4% Diversion
To Unintended Beneficiaries
Causes:a)Inclusion And Exclusion
b)Approximately 16% Ghost
c)Improper BPL Identfication
Storage And Procurement
Out Of 36million tons procurement,
Offtake Is Only 5%
Causes : a) Lackadaisical Approach
of State Government
b) Insufficient Godowns
Around 23% Of All Fair Price Shops (FPS) Are Not Viable And Survive Solely Due To
Leakages And Diversions. Only Around 39% Of The FPS Make Positive Net Income
Over Recurring Costs.
Bogus Ration Cards Estimated To Be Around 16.7%
An Approach To Reach High Above The Standards In PDS
The National Food Security Act – “that will provide a statutory basis for a
framework which assures food security for all. Every family below the poverty
line in rural as well as urban areas will be entitled, by law, to 25 kilograms of
rice or wheat per month at Rs.3 per kilogram.”.
Synchronization with UIDAI , Creation of Benificiary
database and IT based solution.
Systematic changes through formation of vigilance
committee and effective enforcement of
Technological Advancement In PDS
Fully Inclusive Enrolment Process
Enrolment of identified family member by
enrolling them into UID . It should appoint
One Aadhar = One Benificiary
Aadhar is a unique number and a resident
can have only one number use to verify his
Ration Card Registration
The resident who wants to apply can
approach any government body such as
Panchayat office , CSC or can register from
their own mobile phones
Ration card management system, an individual benificiary system,
offtake analysis system and a full featured MIS system.
Aadhar Linked Payment
State Govt. can channel
subsidy to Aadhar
enabled bank account
and benificiary can
access this accounts
External API &Data
UI Forms & Reports Extensions
State specific business rules & workflow extension Engine
It need to deploy all the key
offices of food department .
Central data center could be
collocated with the state
data center and state wide
Aadhar & PDS: A Synergic Partnership
Proposed IT Based Solution Approach
Identifying “Physical Theft” using GPS on trucks.
Tracking their movement and Electronic Weighing bridges.
Monitoring movement of food grains from FCI to Civil .
Supplies Corporation using mobile phones/gadgets.
Ration Card data should be digitalized by developing a common
software with the help of institutional mechanism to undertake the
complex task of conceptualizing , developing and maintaining the
IT systems on a continuous basis.
Self-service inquiries through mobile phones.
A toll-free contact centre for PDS enquiry.
Online account status on the internet will empower
Online account status on the internet to empower
beneficiaries , establishing a direct and transparent
grievance redressal channel.
All FPSs with electronic billing machines .
Monitoring Of Government Machinery
VIGILANCE COMMITTEESMORE REALISTIC PDS
Clear delineation of
functions of each
connected with PDS;
introduce the concept
of personal liability in
case of lapses
by time bound
door to door
The Anti Hoarding
Cell should be
headed by an
officer holding the
rank of not less
than a Deputy
Police with a
constituted into it
Effective Enforcement Of Commodity Act
Action should be taken without loss of time to
seal the FPS if found contravening statutory
A Fast Track Court should be constituted in
respect of cases pertaining to violations of
Essential Commodities Act, 1955.
The Police Department should be directed to
exercise their powers of search and seizure
Incentive should be given
to FPS dealers for selling
other commodities in
conjunction with SFAs.
Accountability should be
fixed for any delay in
delivery of SFAs.
Doorstep delivery will relieve the FPS owner of the
burden of paying a sum of Rs. 15/- per Quintal
towards transport of BPL stock which amount
automatically increases his profit.
Step Towards Success
High level of monitoring is required for the
presence of food stamp scheme
Possibilities of exclusion should be minimum as
it can cause serious nutritional risk for the
Proper reimbursement system should be in
place to create incentive for the Shopkeepers
Addressing diversion during
movement , lifting etc.
Confirmation of delivery in
Tracking movement of goods,
extra charges, poor quality,
IMPACTS & REACH
TECHNOLOGICAL BARRIERS such as…
Cyber crime , Slowed down servers, Data theft
SMS service & alerts access difficult for BPL people
Unawareness and adoption of technology will
prove to be a big headache
Need of more technical skilled workers
Funding and revenue problems such as raising
loans & availing grants
Better human capital, economic growth, , decrease
in poverty & hunger, social and political stability.
Clear identification of benificiary , enabling
individual entitlements , exclusion of fake and
duplicate Ration Cards
Addressing Diversion & Leakages
Ensuring zero proxy withdrawls.
Providing benificiary with portable entitlement
A document that details the on boarding of registrars
Department of Food and Public Distribution :
JUSTICE WADHWA COMMITTEE REPORT ON PDS:
Report on the State of Tamilnadu
Report on the State of Gujarat
Report on the State of Chhatishgarh
Report on Computerization of PDS operations