Seminar - I
Agriculture Performance- Food Security
and Public Distribution System (PDS)

Major advisor
Dr. H. Basavaraja

...
Flow of Presentation
Introduction
Agriculture performance in India
Food security - Dimensions of food security
Projected d...
INTRODUCTION
India’s population is 1.25 billion.
India’s food grain
tonnes.

production 259 million

India achieved national food self ...
Indian Agriculture Sector
Agriculture is the backbone of the Indian economy.
Around 58%
Agriculture.

population

of

Indi...
Second largest producer of wheat,
, sugar, cotton, fruits and vegetables.

paddy

Agriculture accounts for 10% of the tota...
Success story of Indian Agriculture……
Prior mid-1960s India relied on imports (PL-480).

Punjab led India's green revoluti...
Agriculture productivity in India, growth in average
yields from 1970 to 2010
Average YIELD,
1970-1971

Average YIELD,
199...
Mile Stones in Agricultural Development
Special programmes were undertaken to improve food
cash crops supply

and

Grow mo...
Total Output in last five years
155

Agriculture Output in USD(b)

150
Growth only 2 %

145
140
135
130
125

120
115
FY07
...
Agriculture contribution to GDP
Contribution to GDP in %

14.8%
14.6%
14.4%

14.01

14.2%
14.0%

13.7

13.8%
13.6%
13.4%
1...
India’s food grain (rice, wheat, coarse grains and
pulses) production.
Year

Food production

1950-51

50.8mt

1960-61

82...
Food grain production in India

(million tones)

Year

Rice

Wheat

Other cereals

Pulses

Total food
grains

Increase per...
Crops
Rice
Wheat
Jowar
Bajra
Maize
Ragi
Small millets
Barley
Coarse cereals

Average Annual growth rate
10th plan (2002-03...
Growth rates of Population and net food grain production
Years

Population
(In million)

Net production
of food grains
(in...
Supply-Demand Gap for selected Food Item (million metric tones)
Gap (Supply-Demand)
Food items
2011

2021

2026

Rice

1.2...
Per cent annual growth rate of projected supply and
demand
Food items

Demand

Supply

Rice

1.55

1.01

Wheat

1.42

1.34...
Food Security:
According to FAO (Food security)
All people at all time have both physical and
economic access to the basic...
Food Security ensured in the country only if
Enough food is available for
all the persons.(Food

Food
Security

Availabili...
Why India still not achieved food security?????
Growing population
Shifting of food grains area to non food grains areas...
Why food security is needed?
Ever growing population.
0

For the poor section of the society.
Natural disasters or natural...
Stark realities of India
 India

has 872.9 (29%) million
undernourished people(FAO)
 49% of the world's underweight
chil...
major States at hunger index and the underlying components
State

Punjab
Kerala
AP
Assam
Haryana
Tamilnadu
Rajasthan
West ...
Food insecurity will result in
Starvation
Famines and starvation deaths in India
Bengal famine 1943- killed 1.5 million t...
According to report of the Food and Agricultural
Organization (FAO) of the United Nations, number of
hungry people in Indi...
Several schemes started to achieve food security are:
The Food for Work Programme was started in 1977-78.
In September 200...
Food security Management in India
•Procurement of food grains from farmers
remunerative prices.(Procurement price/MSP)

at...
Public Distribution System (PDS)
Definition: Public distribution system is a government-sponsored
chain of shops (Fair pri...
The commodities distributed are as follows:
Wheat
Rice
Sugar
Kerosene
In India there are about 4.5 lakh Fair price Shops d...
PDS Evolution in India
At the time of world war II British government introduced the first
structured public distribution ...
Contd……
Revamped Public distribution System (RPDS) was launched on
Jan 1 1992 and made effective from June 1, 1992, in sel...
In December 2000, Antyodaya Anna Yojana
Annapurna Scheme

In August 2001, Sampoorna Grameen Rozgar Yojana (integrated
rura...
India’s Food Security System
Buffer
Stock

Food
Security
system of
India
Public
Distribution
System
How Public Distribution works:
Consumer

Farmers or
Producers

Grains

Distributes
Grains

MSP

Allocates Grains
FCI
(Main...
Stock position of food grains in the central pool vis-à-vis minimum buffer
norms
(Lakh tones)
Wheat

Rice

Total

As On

A...
Quantum of food subsidies released by government of India
% of Total Govt

Year

Amount(crore)

2001-02

17,494.00

3.61

...
Allocation and off take of rice and wheat for the year 2012-13 under TPDS (in tones)
Allotment

States

Off take

BPL

AAY...
Status of PDS in Karnataka
In Karnataka there are about 21026 active fair price shops.
Exclusion Error

Inclusion Error

D...
Magnitude of loss at different levels of PDS in
Karnataka.

Source: Dr.R.Balasubramaniam, 2012
Off take of Rice and wheat during 2012-13 by Karnataka
In Tonnes
Scheme
(A)TPDS
AAY
BPL
APL
Sub Total
Special/Adhoc
Poores...
Leakages from PDS
Type of
leakage

>70 %

Bihar and Punjab

Very high leakage

25-50%

Assam, Gujarat, Himachal Pradesh,
K...
Diversion of Food grains
State

(kg/BPL Family/annum)

Off take by States

Off-take by identified BPL families

Food Grain...
The Major reasons for leakage are:
Inclusion Error
Ghost Cards

Shadow Ownership
Non-accountability of FPS
Fallouts of P.D.S.
Inferior quality food grains.
Deceitful dealers replace good supplies received from
the F.C.I(Food Corp...
Aadhaar and PDS: The Primary Focus
What is Aadhaar?
Demographic features like Name, Address, Gender and
Date of birth
Uniq...
Aadhaar can be a potent tool for the government in
making the PDS effective in these identified area in the
following mann...
Aadhaar in Karnataka
In Karnataka about 103 Biometric
Machines are introduced
Each machine costs about 46,000

Karnataka i...
Case Study
Case study I

Role and Effectiveness of Public
Distribution
System in providing Food Security in
India
Ms. Gurdeep kaur Gh...
Objective of the study:
1. To study the performance and challenges of food security in India.
2. Role and Effectiveness of...
Per capita consumption and percentage of households reporting
consumption from PDS of rice, wheat/atta, sugar and kerosene...
Percentage of households reporting : Wheat, Rice , Sugar and Kerosene
consumption from PDS; share of PDS in quantity consu...
Conclusion
Thank
you……
Agriculture performance food security and public distristribution system.
Agriculture performance food security and public distristribution system.
Agriculture performance food security and public distristribution system.
Agriculture performance food security and public distristribution system.
Agriculture performance food security and public distristribution system.
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Agriculture performance food security and public distristribution system.

  1. 1. Seminar - I Agriculture Performance- Food Security and Public Distribution System (PDS) Major advisor Dr. H. Basavaraja By Najath Paraveen Navalur PGS12AGR5750 UAS Dharwad
  2. 2. Flow of Presentation Introduction Agriculture performance in India Food security - Dimensions of food security Projected demand & supply of food- food gap Public distribution system (pds) Case study conclusion
  3. 3. INTRODUCTION
  4. 4. India’s population is 1.25 billion. India’s food grain tonnes. production 259 million India achieved national food self -sufficiency 35 years ago, Yet about 35% of its population remains food insecure. Low incomes and high food prices prevent individual food security. Another aspect of India’s food insecurity situation is that even after over three decades of operation, Public Distribution System (PDS) meets less than 10% of consumption of grains by the poor.
  5. 5. Indian Agriculture Sector Agriculture is the backbone of the Indian economy. Around 58% Agriculture. population of India depends on Produces 51 major Crops. India ranks second worldwide in farm output. India is the leading producer of Jute, pulses mangoes, bananas, cashew nuts and ginger..
  6. 6. Second largest producer of wheat, , sugar, cotton, fruits and vegetables. paddy Agriculture accounts for 10% of the total exports earning and provide raw material to a large number of industries. India ranks among world’s 5 largest producers of over 80% of agriculture commodity viz coffee, cotton, livestock and poultry meat. Contributes 16% to GDP.
  7. 7. Success story of Indian Agriculture…… Prior mid-1960s India relied on imports (PL-480). Punjab led India's green revolution. A hectare of Indian wheat farms that produced an average of 0.8 tonnes in 1948, produced 4.7 tonnes of wheat in 1975 from the same land. By 2000, Indian farms adopted wheat varieties capable of yielding 6 tonnes of wheat per hectare.
  8. 8. Agriculture productivity in India, growth in average yields from 1970 to 2010 Average YIELD, 1970-1971 Average YIELD, 1990-1991 Average YIELD, 2010–2011 Kg/ha Kg/ha Kg/ha Rice 1123 1740 2240 Wheat 1307 2281 2938 Pulses 524 578 689 Oilseeds 579 771 1325 Sugarcane 48322 65395 68596 Tea 1182 1652 1669 Cotton 106 225 510 Crop
  9. 9. Mile Stones in Agricultural Development Special programmes were undertaken to improve food cash crops supply and Grow more food campaign (1940). Integrated production and cash crops. programmes (1950) focused on food Five year plans of India- oriented towards agriculture development. Land reclamation, land development, mechanization, electrification, use of fertilizers, chemicals. Green revolution(1960). Yellow revolution (1986-1990). Operation Flood(1970-1996). Blue revolution (1973-2002).
  10. 10. Total Output in last five years 155 Agriculture Output in USD(b) 150 Growth only 2 % 145 140 135 130 125 120 115 FY07 FY08 FY09 FY10 Value In USD (b) Source: Ministry of Agriculture FY11 FY12
  11. 11. Agriculture contribution to GDP Contribution to GDP in % 14.8% 14.6% 14.4% 14.01 14.2% 14.0% 13.7 13.8% 13.6% 13.4% 13.2% 2009-10 2010-11 Years Source: Ministry of Agriculture 2011-12 2012-13
  12. 12. India’s food grain (rice, wheat, coarse grains and pulses) production. Year Food production 1950-51 50.8mt 1960-61 82mt 1970-71 108.4mt 1980-81 129.6mt 1990-91 176.4mt 2000-01 196.8mt 2011-12 259mt 2012-13 255mt Source: Ministry of Agriculture, India
  13. 13. Food grain production in India (million tones) Year Rice Wheat Other cereals Pulses Total food grains Increase per year 2000-01 84.98 69.68 31.07 11.08 196.81 - 2001-02 93.34 72.77 33.37 13.37 212.85 8.1 2002-03 71.82 65.76 26.06 11.13 174.77 -17.8 2003-04 88.53 72.16 37.59 14.91 213.19 21.98 2004-05 83.13 68.64 33.46 13.13 198.36 -6.95 2005-06 91.79 69.35 34.08 13.38 208.60 5.2 2006-07 93.36 75.81 33.91 14.20 217.28 4.2 2007-08 96.69 78.57 40.76 14.76 230.78 6.2 2008-09 99.18 80.68 40.04 14.57 234.47 1.6 2009-10 89.09 80.80 33.56 14.66 218.11 -7.0 2010-11 95.98 86.87 43.4 18.24 244.49 12.2 2011-12 105.30 94.88 42.02 17.09 259.29 6.1 2012-13 104.40 92.46 40.05 18.45 255.36 -1.5 Source: Economic survey, 2011-12
  14. 14. Crops Rice Wheat Jowar Bajra Maize Ragi Small millets Barley Coarse cereals Average Annual growth rate 10th plan (2002-03 to 2006-07) Area Production Yield -0.39 1.25 1.17 1.30 1.11 -0.32 -0.89 2.07 -2.84 1.67 17.12 7.28 3.77 4.02 -0.15 -5.52 -2.67 0.40 -5.03 -2.49 2.32 -0.28 -1.21 -0.90 2.55 1.75 -0.26 Total cereals 0.07 Gram 3.60 Tur 1.38 Total pulses 1.31 Total food grains 0.29 Sugar cane 3.98 Ground nut -1.65 Seasamum 0.98 Rape and mustard 7.32 Sunflower 14.04 Soyabean 5.80 Total nine oilseeds 3.55 Cotton 0.57 Jute Source: Indiastat.com -1.82 1.21 4.70 1.06 2.66 1.29 4.90 3.61 3.64 11.55 13.83 12.26 7.99 20.01 -0.38 0.74 0.28 -0.41 0.65 0.59 0.66 4.32 0.51 3.24 0.37 6.18 3.53 19.40 1.49 Average Annual growth rate 11th plan (2007-08 to 2011-12) Area Production Yield 0.18 2.69 2.41 1.31 4.61 3.29 -3.00 3.26 -5.71 -1.38 7.84 8.64 2.16 8.90 6.74 0.41 8.11 6.66 -4.42 -0.13 4.08 0.61 6.32 4.64 5.68 7.27 -1.59 -0.03 2.32 3.13 1.36 0.19 0.04 -0.86 2.42 -1.69 -18.74 4.00 -0.07 5.97 0.47 3.79 4.62 4.84 4.28 3.80 0.99 15.82 8.28 -0.37 -14.46 7.71 5.54 10.46 1.26 3.76 2.27 1.54 2.78 3.55 0.87 13.91 5.30 0.76 6.20 3.90 5.32 3.93 0.62
  15. 15. Growth rates of Population and net food grain production Years Population (In million) Net production of food grains (in million tons) CGR per decade of the growth of population CGR per decade of the growth of food grains 1951 363.2 48.1 - - 1961 442.4 72.0 1.99 4.12 1971 551.3 94.9 2.23 2.80 1981 688.5 113.4 2.25 1.80 1991 851.7 154.3 2.15 3.13 2001 1027 172.2 1.95 1.10 2011 1210.2 210.2 1.65 2.89 Average 733.47 123.59 - - S.D 28.9 53.57 - - C.V 39.40 43.34 - - Source: The relevance of the concept of food security in the context of the Indian Economy, Dhirendra Nath Konar, 2012
  16. 16. Supply-Demand Gap for selected Food Item (million metric tones) Gap (Supply-Demand) Food items 2011 2021 2026 Rice 1.26 8.98 9.13 Wheat 21.21 27.33 32.04 Total cereals 21.19 -2.94 -16.97 Pulses -8.05 -24.92 -39.31 Edible oil -6.66 -17.68 -26.99 Sugar -4.31 -39.67 -74.13 Source: Surabi (2011)
  17. 17. Per cent annual growth rate of projected supply and demand Food items Demand Supply Rice 1.55 1.01 Wheat 1.42 1.34 Total cereals 3.17 1.45 Pulses 6.51 0.91 Edible oil 5.95 2.13 Sugar 8.22 0.14 Source: Surabi (2011)
  18. 18. Food Security: According to FAO (Food security) All people at all time have both physical and economic access to the basic food they need. WORLD BANK DEFINITION (1986): “Access by all people at all times to enough food for an active, healthy life. Its essential elements are the availability of food and the ability to acquire it” The World Food Summit of 1996 food security exists “when all people, at all times have physical, social, economic access to sufficient, safe and nutritious food to maintain a healthy and active life”.
  19. 19. Food Security ensured in the country only if Enough food is available for all the persons.(Food Food Security Availability) There is no barrier on access to food (FOOD ACCESS) All persons have the capacity to buy food of acceptable quality(FOOD Utilization) and Food Availability Food Access Food Utilization Food security is a complex sustainable development issue.
  20. 20. Why India still not achieved food security????? Growing population Shifting of food grains area to non food grains areas. Worrisome of food inflation The sick public distribution system Food subsidies Climate change 18
  21. 21. Why food security is needed? Ever growing population. 0 For the poor section of the society. Natural disasters or natural calamity like earthquake, flood and tsunami. Wide spread of crop failure due to drought.
  22. 22. Stark realities of India  India has 872.9 (29%) million undernourished people(FAO)  49% of the world's underweight children(WHO)  34% of the world's stunted children (WHO) over 46% undernourished children (WHO). According to latest GHI report 2012 from IFPRI, India ranks 65 behind china (2nd) and Pakistan (57th).
  23. 23. major States at hunger index and the underlying components State Punjab Kerala AP Assam Haryana Tamilnadu Rajasthan West Bengal UP Maharashtra Karnataka Orissa Gujarat Chhattisgarh Bihar Jharkhand MP India Prevalence of calorie Under weight undernourishment (%) children below 5 years (%) 11.1 28.6 19.6 14.6 15.1 29.1 14.0 18.5 14.5 27.0 28.1 21.4 23.3 23.3 17.3 19.6 23.4 20.0 24.6 22.7 32.7 36.4 39.7 30 40.4 38.5 42.3 36.7 37.6 40.9 44.7 47.6 56.1 57.1 59.8 42.5 Under 5 mortality rates (deaths per hundred Lives) 5.2 1.6 6.3 8.5 5.2 3.5 8.5 5.9 9.6 4.7 5.5 9.1 6.1 9.0 8.5 9.3 9.4 7.4 Indian state hunger index rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
  24. 24. Food insecurity will result in Starvation Famines and starvation deaths in India Bengal famine 1943- killed 1.5 million to 3 million people. Bihar famine 1966-67 – 2353 deaths due to starvation Starvation deaths have also been reported in 1. Kalahandi and Kashipur in Orissa 2. Baran district of Rajasthan. 3. Palamau district of Jharkhand
  25. 25. According to report of the Food and Agricultural Organization (FAO) of the United Nations, number of hungry people in India had been: 1979-81: 261.5 million (38%) 1990-92: 215.6 million (25%) 1998-2000: 233.3 million (24%) 2000-2012: 300 million (30%) 26
  26. 26. Several schemes started to achieve food security are: The Food for Work Programme was started in 1977-78. In September 2001, different programmes were merged into an umbrella programme called SGRY (Sampoorna Gramin Rozgar Yojana – Comprehensive Rural Employment Scheme) In February 2006, a National Rural Employment Guarantee (NREG) scheme was launched in 200 most backward rural districts under NREG Act passed by the Parliament. The Rajiv Gandhi Drinking Water Mission, Rashtriya Krishi Vikas Yojana with an outlay of Rs. 25000 crore National Food Security Mission with an outlay of about Rs. 6,000 crore
  27. 27. Food security Management in India •Procurement of food grains from farmers remunerative prices.(Procurement price/MSP) at •Distribution of food grains to the consumers, particularly the vulnerable sections of the society at affordable prices through PDS and •Maintenance of food buffers for food security and price stability.
  28. 28. Public Distribution System (PDS) Definition: Public distribution system is a government-sponsored chain of shops (Fair price shops) entrusted with the work of distributing basic food and non-food commodities to the needy sections of the society at very cheap prices. The Indian PDS is a national food security system that distributed subsidized food to India’s poor. PDS means distribution of essential commodities to a large number of people through a network of Fair Price Shops (FPS) on recurring basis.
  29. 29. The commodities distributed are as follows: Wheat Rice Sugar Kerosene In India there are about 4.5 lakh Fair price Shops distributing food grains to about 16 crore families spending more than Rs.30,000 crore. Each shop covers about 2000 people. PDS in India perhaps the largest distribution network of its type in the world.
  30. 30. PDS Evolution in India At the time of world war II British government introduced the first structured public distribution of cereals in India through the rationing system in Bombay and Calcutta. In 1943 India abolished the rationing system. After independence in 1950 due to inflationary pressure in the economy, India reintroduced rationing . Due to the ineffectiveness of Rationing System to reach the poor.
  31. 31. Contd…… Revamped Public distribution System (RPDS) was launched on Jan 1 1992 and made effective from June 1, 1992, in selected blocks (1775 blocks). In June, 1997, Targeted Public distribution system (TPDS) was launched. To target the needy people and provide them an assured supply of food grains. In TPDS the main aim was to target the “poor in all areas”. The distribution of food grains operated under two tier system of delivery to households Below poverty line (BPL) Above poverty line (APL)
  32. 32. In December 2000, Antyodaya Anna Yojana Annapurna Scheme In August 2001, Sampoorna Grameen Rozgar Yojana (integrated rural employment scheme) - five million tons Mid day meal scheme , wheat based nutrition programmes, scheme for supply of food grains to SC/ST.
  33. 33. India’s Food Security System Buffer Stock Food Security system of India Public Distribution System
  34. 34. How Public Distribution works: Consumer Farmers or Producers Grains Distributes Grains MSP Allocates Grains FCI (Maintains Buffer Stocks) States Central Issue Price
  35. 35. Stock position of food grains in the central pool vis-à-vis minimum buffer norms (Lakh tones) Wheat Rice Total As On Actual stock Minimum Buffer norms Actual stock Minimum Buffer norms Actual stock Minimum Buffer norms 1.4.2010 161.25 70 267.13 142 428.38 212 1.7.2010 335.84 201 242.66 118 578.50 319 1.10.2010 277.77 140 184.44 72 462.21 212 1.1.2011 215.40 112 255.80 138 471.20 250 1.4.2011 153.64 70 288.20 142 441.84 212 1.7.2011 371.79 201 268.57 118 640.36 319 1.10.2011 314.26 140 203.59 72 517.85 212 1.1.2012 256.76 112 297.18 138 553.94 250 1.4.2012 199.52 70 333.50 142 533.02 212 1.7.2012 498.08 201 307.08 118 805.16 319 1.10.2012 431.53 140 233.73 72 665.26 212 1.1.2013 343.83 112 322.21 138 666.04 250 Source: Food, Civil supplies and consumer affairs
  36. 36. Quantum of food subsidies released by government of India % of Total Govt Year Amount(crore) 2001-02 17,494.00 3.61 2002-03 24,176.45 4.83 2003-04 25,160.00 5.17 2004-05 25,746.45 6.21 2005-06 23,071.00 7.02 2006-07 23,827.00 7.90 2007-08 31,259.68 8.46 2008-09 43,668.08 9.60 2009-10 58,242.45 10.42 2010-11 62,929.56 13.20 2011-12 72,370.00 14.12 Source: Department of food and public distribution. Expenditure
  37. 37. Allocation and off take of rice and wheat for the year 2012-13 under TPDS (in tones) Allotment States Off take BPL AAY APL TOTAL BPL AAY APL TOTAL AP Arunachal Pradesh Assam Bihar Chhattisgarh Delhi Goa Gujarat Haryana HP J&K Jharkhand 175.348 4.254 79.204 281.562 80.948 18.166 0.922 91.728 34.762 22.190 33.616 103.328 109.048 2.664 49.282 175.070 50.324 10.514 1.018 56.680 20.470 13.790 17.898 64.254 352.740 10.010 185.990 160.680 76.080 71.190 8.566 199.110 70.770 52.010 74.620 58.860 637.136 16.926 314.476 617.312 207.352 99.820 10.506 347.518 126.002 87.990 126.134 226.442 219.00 4.336 77.737 301.501 78.519 21.927 0.922 98.389 34.960 20.854 34.894 98.235 138.263 2.631 48.242 204.842 50.324 8.942 1.018 65.084 18.152 13.769 19.055 62.575 245.779 9.367 150.401 33.378 66.516 79.010 9.927 119.022 35.658 52.876 82.199 0.955 603.142 16.604 276.380 539.721 195.359 109.879 11.867 282.495 88.770 87.509 136.148 161.766 Karnataka 139.410 79.635 189.242 408.288 150.498 85.486 196.331 457.315 136.680 167.340 335.790 16.870 18.620 6.930 12.466 83.214 105.240 193.080 4.340 280.076 29.890 463.890 52.470 280.322 4.480 5.400 0.540 0.662 2.560 affairs 4.200 245.448 456.085 793.174 28.492 31.430 11.690 21.146 365.996 137.995 363.250 7.380 620.472 50.540 77.780 170.136 299.549 7.531 8.271 2.790 6.775 194.262 12.568 101.948 2.340 229.266 13.056 455.633 23.119 279.755 0.679 0.313 0.840 0.202 0 4.296 46.998 92.999 181.040 4.524 5.187 1.720 4.524 84.429 6.032 64.014 1.156 150.537 8.559 301.191 12.054 85.637 0.210 0.010 0.355 0.137 0 2.379 155.214 71.309 188.614 19.914 19.661 6.691 15.156 70.652 68.956 196.184 4.409 261.334 31.670 360.256 54.534 266.953 1.772 5.214 0.540 0.654 1.100 3.513 279.992 337.445 Kerala MP Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim TN Tripura UP Uttarakand West Bengal A & N islands Chandigarh D & N haveli Damen and Diu Lakshadweep Source:. Pondicherry Food, 67.058 178.036 284.904 7.168 7.896 2.940 5.352 194.262 20.196 104.922 1.884 209.872 12.730 460.950 21.498 258.930 0.890 0.626 0.838 0.174 0.126 Civil supplies 3.594 41.710 110.710 172.480 4.454 4.914 1.820 3.328 88.520 12.560 65.248 1.159 130.524 7.920 286.580 13.364 103.614 0.300 0.104 0.366 0.106 0.084 and consumer 2.258 1211.420 87.332 642.855 5.670 6.130 1.744 0.942 2.770 10.052 669.203 31.959 33.119 11.201 26.455 349.343 87.556 362.146 7.905 641.137 53.285 1117.080 89.707 632.345 2.661 5.537 1.746 0.993 1.100 10.188
  38. 38. Status of PDS in Karnataka In Karnataka there are about 21026 active fair price shops. Exclusion Error Inclusion Error Due to miss classification Due to maladministration Due to mis classification Due to maladministration 4.2 lakh household 1.6 lakh household 52.3 lakh household 6.6 lakh household Karnataka issued 1.6 crore ration card but the present total number of family in the state is only 1.2 crore. that means 40 lakh ghost cards. Karnataka’s PDS system occur an monthly leakage of Rs. 144.8crore. Currently Karnataka food bill is issued under this Anna Bhagya Scheme was introduced spending about Rs 460 crore a year.
  39. 39. Magnitude of loss at different levels of PDS in Karnataka. Source: Dr.R.Balasubramaniam, 2012
  40. 40. Off take of Rice and wheat during 2012-13 by Karnataka In Tonnes Scheme (A)TPDS AAY BPL APL Sub Total Special/Adhoc Poorest districts Sub Total (A) (B) Welfare Schemes MDM WBNP EFP Hostels/Welfare Institutions Annapurna other Sub total (B) (C) other schemes WEF, RELIEF,DEFENCE etc Open sale/tender sale/export Sub total(C) Grand total (A+B+C) Rice Wheat Total 51.31 86.82 52.95 191.08 14.38 13.06 218.52 25.34 49.82 74.81 150.01 7.76 6.71 164.44 76.65 136.64 127.75 341.08 22.14 19.77 382.95 15.33 1.88 0.13 1.78 0.39 0.19 19.70 3.27 6.31 0.00 0.22 0.10 0.47 10.39 18.60 8.19 0.13 2.00 0.49 0.66 30.09 1.53 0.46 1.99 240.21 0.10 56.42 56.52 231.35 1.63 56.88 58.51 471.56 Source: Karnataka Food, Civil supplies and consumer affairs
  41. 41. Leakages from PDS Type of leakage >70 % Bihar and Punjab Very high leakage 25-50% Assam, Gujarat, Himachal Pradesh, Karnataka, Maharashtra and Rajasthan <25 % AP, Kerala, Orissa, TN and west Bengal Very high leakages >50% Bihar, Haryana and Punjab High leakage 25-50% UP & Rajasthan Moderate leakage 10-25 % Bihar, Gujarat, KTK, Maharashtra,Orissa,TN and West Bengal <10% Assam,HP,MP, Orissa,TN & West Bengal. Very high Leakage >30% Assam,HP &MP. High leakage 10-50% Bihar, Gujarat,Ktk,Maharashtra, Orissa, Uttarpradesh and west Bengal Moderate leakage Leakage through ghost card Abnormal leakage Low leakage Leakage at fair price shop States Low leakage Total leakage Percent <10% AP,Haryana,Kerala,Punjab, Rajasthan and TN Source: Food Security in India: Biswajit Chaterjee,2012
  42. 42. Diversion of Food grains State (kg/BPL Family/annum) Off take by States Off-take by identified BPL families Food Grains not reaching the poor house hold AP 466.16 197.62 268.51 Assam 490.76 227.32 263.44 Bihar 138.13 12.24 125.89 Gujarat 320.24 169.47 150.77 Haryana 416.16 138.79 277.37 HP 492.22 266.14 226.08 KTK 480.80 139.91 340.89 Kerala 407.58 248.58 159.00 MP 365.57 124.04 241.53 Maharashtra 347.29 227.27 120.02 Orissa 276.37 175.88 100.49 Punjab 364.24 38.25 326.00 Rajasthan 366.53 238.43 128.10 TN 525.95 181.14 344.81 UP 285.16 92.73 192.43 West Bengal 336.78 246.19 90.59 16 states total 380.00 160.25 219.75
  43. 43. The Major reasons for leakage are: Inclusion Error Ghost Cards Shadow Ownership Non-accountability of FPS
  44. 44. Fallouts of P.D.S. Inferior quality food grains. Deceitful dealers replace good supplies received from the F.C.I(Food Corporation of India) with inferior stock and sell FCI stock in the black market. Illicit fair price shop owners have been found to create large number of bogus cards to sell food grains in the open market. Many FPS dealers resort to malpractice, illegal diversions of commodities, hoarding and black marketing due to the minimal salary received by them. Regional allocation and coverage of FPS are unsatisfactory and the core objective of price stabilization of essential commodities has not met.
  45. 45. Aadhaar and PDS: The Primary Focus What is Aadhaar? Demographic features like Name, Address, Gender and Date of birth Unique identification called Aadhaar Biometric features Iris Finger print
  46. 46. Aadhaar can be a potent tool for the government in making the PDS effective in these identified area in the following manner: One Aadhaar one beneficiary Aadhaar as sufficient Proof of Identity(POI) and Proof of Address (POA), these individuals can provided with ration cards. Portability in Identification Address the issues of leakages and proxy withdrawals. Flexibility
  47. 47. Aadhaar in Karnataka In Karnataka about 103 Biometric Machines are introduced Each machine costs about 46,000 Karnataka in total spending about 97 crore to install biometric machine in all fair price shops Bio-metric machine
  48. 48. Case Study
  49. 49. Case study I Role and Effectiveness of Public Distribution System in providing Food Security in India Ms. Gurdeep kaur Ghumaan and Dr. Pawan Kumar Dhiman June 2013
  50. 50. Objective of the study: 1. To study the performance and challenges of food security in India. 2. Role and Effectiveness of Public Distribution System in providing Food security in India. Nature of Data Secondary data were collected from NSSO( National Sample Survey Organisation) . Information on purchases of rice, wheat, sugar, and kerosene from fair price shops were also collected. Study area The study was conducted all over India.
  51. 51. Per capita consumption and percentage of households reporting consumption from PDS of rice, wheat/atta, sugar and kerosene in 2004-05 and 2009-10, all-India Sector Item 2009-10 Per capita consumption(kg) % share of PDS in qty. PDS Other consumed 2004-05 Per capita consumption(kg) 3 4 5 6 Rice 1.408 4.594 23.5 0.839 Wheat/atta 0.619 3.625 14.6 Sugar 0.097 0.563 Kerosene 0.511 Rice 1 Other source 7 2 PDS % of hhs reporting % share of consn. From PDS PDS in during 30 days qty. consumed 2009-10 2004-05 8 9 10 5.537 13.2 39.1 24.4 0.307 3.885 7.3 27.6 11.0 14.7 0.062 0.587 9.6 27.6 15.9 0.081 86.3 0.477 0.142 77.1 81.8 72.8 0.814 3.706 18.0 0.530 4.181 11.3 20.5 13.1 Wheat/atta 0.371 3.706 9.1 0.167 4.192 3.8 17.6 5.8 Sugar 0.080 0.700 10.3 0.054 0.763 6.6 18.7 11.5 Kerosene 0.295 0.169 63.6 0.350 0.268 56.6 33.0 32.8 Rural Urban
  52. 52. Percentage of households reporting : Wheat, Rice , Sugar and Kerosene consumption from PDS; share of PDS in quantity consumed : major States State Andhra Pradesh Assam Bihar Chhattisgarh Gujarat Haryana Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Orissa Punjab Rajasthan Tamilnadu Uttar Pradesh West Bengal All India Wheat share of PDS in consumption Rural Urban 5.1 7.5 1.5 1.3 5.1 2.4 39.1 17.9 15.6 5.0 14.2 8.0 20.6 4.0 51.5 13.5 39.7 33.1 21.8 13.2 32.7 8.6 17.0 10.2 14.6 9.0 10.5 6.1 85.8 64.7 6.8 7.6 41.4 11.7 14.6 9.1 Rice share of PDS in consumption Rural 32.9 11.2 5.1 41.2 20.3 0.5 14.0 45.0 27.9 20.1 34.2 24.8 0.1 0.3 52.7 17.6 6.3 23.5 Urban 21.5 5.1 2.2 25.7 5.8 0.4 7.4 17.7 24.0 8.3 7.5 13.3 0.1 0.2 40.9 7.8 2.9 18.0 Sugar share of PDS in consumption Rural 24.5 53.2 0.9 28.6 14.5 2.1 4.6 18.9 11.2 14.1 9.8 16.0 0.0 0.9 73.2 7.0 11.2 14.7 Urban 12.3 31.0 1.7 11.0 3.3 1.9 1.7 5.4 8.5 6.0 4.6 8.9 0.3 0.7 62.6 2.1 4.3 10.3 Kerosene share of PDS in consumption Rural 91.46 72.46 83.99 89.34 93.47 92.89 67.32 85.36 95.59 90.95 86.43 83.53 82.13 93.51 91.49 85.99 80.01 86.24 Urban 67.14 54.55 70.16 82.38 56.52 53.64 36.68 50.84 90.37 79.33 47.64 52.52 23.50 79.80 72.05 82.69 73.22 63.58
  53. 53. Conclusion
  54. 54. Thank you……

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