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Agriculture performance food security and public distristribution system.
1.
2. Seminar - I
Agriculture Performance- Food Security
and Public Distribution System (PDS)
Major advisor
Dr. H. Basavaraja
By
Najath Paraveen Navalur
PGS12AGR5750
UAS Dharwad
3. 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
5. 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.
6. 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..
7. 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.
8. 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.
9. 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
10. 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).
11. 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
12. 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
13. 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
16. 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
18. 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)
19. 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”.
20. 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.
21. 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
22. 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.
23. 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).
24. 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
25.
26. 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
27. 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
28. 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
29. 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.
30.
31. 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.
32. 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.
33. 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.
34. 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)
35. 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.
36. India’s Food Security System
Buffer
Stock
Food
Security
system of
India
Public
Distribution
System
37. How Public Distribution works:
Consumer
Farmers or
Producers
Grains
Distributes
Grains
MSP
Allocates Grains
FCI
(Maintains
Buffer
Stocks)
States
Central Issue Price
38. 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
39.
40. 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
42. 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.
43. Magnitude of loss at different levels of PDS in
Karnataka.
Source: Dr.R.Balasubramaniam, 2012
44. 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
45. 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
46. 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
47. The Major reasons for leakage are:
Inclusion Error
Ghost Cards
Shadow Ownership
Non-accountability of FPS
48. 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.
49. 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
50. 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
51. 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
53. 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
54. 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.
55. 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