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  1. 1. WHAT IS PDS? ● Public Distribution System (PDS) is a poverty alleviation programme which contributes towards the social welfare of the people by providing essential commodities like rice,wheat, sugar and kerosene at reasonable prices. ● PDS is considered as principal instrument in the hands of State Governments for providing safety net to the poor against the spiralling rise in prices of essential commodities thus it's a boon to the people living below the poverty line. ● Evolution of public distribution of grains in India had its origin in the 'rationing' system introduced by the British during the World War II. In view of the fact that the rationing system and its successor, the public distribution system (PDS) has played an important role in attaining higher levels of the household food security and completely eliminating the threats of famines from the face of the country. ● The PDS seeks to provide to the beneficiaries two cereals, rice and wheat and four essential commodities viz. sugar, edible oil, soft coke and kerosene oil. However, state governments, which actually manage the system at the ground level, are exhorted to add other essential commodities like pulses, salt, candles, matchboxes, ordinary clothes, school text books/copies and the like. Supply of additional items through PDS is especially relevant in interior areas, which are away from markets.
  2. 2. General Problems With Public Distribution System • It is not in reach of every consumer. About 73% did not get any food from PDS. • Stocks arrived in FPS are not always on time hence consumer have to depend on private shops. Extent and availability • The grain won’t reach to FPS but goes to open market for selling, getting the margins which benefits the middle men that is FPS owners and officials of the distribution wing. • The PDS system leads to the creation of illegal hoarding and inappropriate storage of food grains to inflate market values. Corruption • This government policy aims at subsidizing price of commodities lower than minimum support price. With the alarming inflation, the minimum support price will bound to increase. The subsidy will henceforth increase. Subsidy
  3. 3. Fair Price Shops – A major problem  Fair price shops are not viable. Most shops do not display stock statements, and bill books are poorly maintained. Issuance of bills for the transactions undertaken is done rarely and stock books are improperly maintained. Card holders complained about the FPS owners charging higher prices for commodities and receiving less quantity than what they are entitled to. Shops use unfair practices in distribution such as adulteration, improper weighing, etc.  FPS OWNERS DO BLACKMARKETING THROUGH VARIOUS WAYS:   He fools illiterate consumers by selling them less quantity of ration through taking  their thumb prints for different quantities.   Adulteration is the most common thing which is done by FPS. Thus compromising with  the nutritional value of ration.   FPS OWNER exchange good quality of ration present in FPS stocks with poor quality of  stocks from market shops, hence earning their profit with this black marketing   They don’t maintain proper report of ration transactions and bribe the food security  inspectors.   They sell the remaining ration of FPS in open market at higher for their own benefits,  thus reducing the government’s subsidy.
  4. 4. BPL PROBLEMS The numbers shown by state government for BPL families do not tally with the ration cards issued and also with the planning commission statistics. Due to this two types of problem arises - one is the number of ration card holders are less compared to the number of BPL families announced by the state government. Second is the number of ration cards issued are more than the real BPL families in the village. In the second case, huge quantity of grains got released from second but not the concerned but reselling the same at higher margins in market. PDS is highly corrupt system which is not benefiting the needy- poorest of the poor, as per objective of the government. To reduce the filtration of the grains into open market technology usage from go downs – Fair price shop – consumer mechanism has to be automated.
  5. 5. SOLUTION •rights to purchase ration from any of the FPS rather than allotted fps for helping migrants Flexibility in FPS •Central govt. should provide subsidy to state govt. based on the formula and let them decide on the subsidies for various commodities.Decentralisation of operation •State govt. can hire a private agency to monitor the PDS process. Monitoring •Pds units with maximum connectivity should be periodically felicitated by the government Regular incentives to the performing pds unit •Provision for the complaints resistor for the consumer so that they can lodge their complaints with the authorities directly complaints
  6. 6. • • • g • y s • • • w • • • HIGH LEVEL DESCRIPTION OF KEY STEPS INVOLVED IN IMPLEMENTING SOLUTION Accessibility Monitoring and Packa ing FPS working • Integrating AADHAR CARD of ever family member into a common e-ration card of family Computerized system at very fair price shop which will be linked with the centralized system at every state level. Government will provide vans that would distribute ration in remote areas. Ration will be provided on the basis of number of family members. • Packaging unit will be setup in all FCI godowns. Ration will be packed in standard size packets. CCTV cameras will be there in every FCI godown. Central will monitor warehouses through its vigilance officers and CCTV’s. Dispatched packed ration from are houses and stocks reached at every FPS will be electronically monitored by a central body.• FPS purchase data will be sent to central. Consumers can now purchase their ration from any FPS. Consumers will hold power to purchase as much ration as they want of their allotted ration (just like withdrawing money from ATM). FPS owner will earn his share in form of salary from central system on the basis of his purchase.
  7. 7. FCI GODOWNS Farmers Database of warehouses Packaging unit in FCI godown Packed ration Packed ration Beneficiaries mobile FPS in remote Areas Ration Purchase money SALARY FCI database WAREHOUSE WAREHOUSE Database of all FPS FPS FPS FPS FPS FPS Terminale-card reader Printer FPS Database E ration card linked with Aadhar FPS OWNER BANK FCI account
  8. 8. LEVERAGING GOVERNMENT INFRASTRUCTURE Computerization  Gadgets, computers, networks must be installed in the FPS at a much professional level.  A team of engineers and technicians must be appointed. Whenever there is a technical error in the automated system, the team ought to improvise it as soon as possible.  The vehicles for transportation must be well equipped and well maintained such that in any emergency case when there is traffic jam or rainfall the ration must not spoil. TOTAL FUNDING REQUIRED Central FCI godowns to warehouses Organization cost Infrastructure cost Transportation cost Technology cost procuremen subsidy packaging cost Warehouses to FPS Mobile distribution Setting up computers + e- card reader IT software 90000 crore 5000 crore 1500 crore 2500 crore FCI godowns CCTV cameras warehouses
  9. 9. APPENDIX AADHAR CARD- A unique identification project which provides a unique id number to all Indian . AAY-Antyodya Ann Yogna ADULTERATION-Mixing inedibles in food grains so that quantity increase and quality decrease. APL-Above poverty line BPL-Below poverty line Cloud technology-Computing concepts that involve a large number of computers conected through a real-time communication network. FCI-Food Corporation of India FPS-Fair price shop FSB-Food Security Bill NSS-National Sample Survey,largest organization in India conducting regular socio- ecenomic surveys. PDS-Public distribution system RPDS-Revamped Public Distribution System RTI-Right to information TPDS-Targeted Public Distribution System