1. MANTHAN TOPIC:
PLUGGING THE LEAKS
Improving reach and efficiency of the Public Distribution System
TEAM DETAILS: TEAM ARIHANT
BITAN BHADRA, BIKASH DASH, SAURAV GHOSH, RONAK
MOHANTY, INDRANIL BHOWMICK.
COLLEGE: KIIT UNIVERSITY
Technology driven, automated Public Distribution System using swipe cards to make it highly efficient and transparent

2. PROBLEMS PERSISTING IN INDIAN PUBLIC DISTRIBUTION SYSTEM
The contemporary problems in India with the PDS is not with shortage of food grains but ironically the
management of excess food grains. A lot of food grains are either wasted, thrown away or rots in godowns.
There is always more in national buffer stock, yet at places there arise problems of low stock.
CAG of India reports pointed out that states take in less food grains than allotted stock and distribute even
lesser to beneficiaries. This shows a diversion of food grains and commodities due to malpractices by FPS
owners or dealers. Besides storage capacity of different states is lesser than their allotted amounts.
Numerous people in BPL category are either not enrolled or do not receive the benefits of the system.
Numerous Fair Price Shops(FPS) complain of low availability of stocks or delay in arrival of supply.
One Planning commission report stated that “ for every rs.4 spent on PDS, only re.1 reaches the poor”. It also
stated “57% of PDS food grain does not reach intended people”.
Local monitors are also charged of corruption who have an understanding with FPS owners or godown dealers.
A lot of monitor agencies are said to exist only in pen and paper adding to corrupt practices.
A lot of people are said to possess ration cards with wrong names or similar names. These are termed as “ghost
action cards” therefore taking undue advantage of the system.
No monitoring agency on carriage trucks whose loading and off-loading quantities, movement period are not
regulated or monitored.

3.  E-PDS TO REPLACE CURRENT PDS TO MAKE IT MORE EFFICIENT AND ROBUST
 We recommend a nation wide electronic, internet controlled Public Distribution System(PDS).
 It functions on a specially designed highly efficient software built to carry out the required tasks and monitor all transactions at each
level.
 It includes a central database at center under the PDS control department.
 The central database will contain all data regarding each beneficiary and controls their buying of food grains.
 Each beneficiary is owner of a swipe ration card (registered under a particular shop) that is to be used for each transaction.
 Rations are distributed in pre-packaged form, sealed and each packet to have a unique serial number and corresponding barcode. Each
packet will contain 1kg of corresponding food grain.
 While buying, shopkeeper will have to laser tag each barcode with a barcode reader in front of the customer before handing it over to
him. At the end of purchase process, an electronically generated cash memo will be handed to the customer, one copy retained by the
shopkeeper and the corresponding data of sale automatically updated in central database.
 Once a customer buys a packet of 1kg, automatically 1kg of that ration type is deducted from his allotted share. This takes place each
time he/she makes a transaction. Ultimately the software will only allow him to buy the amount he is entitled to.
SALIENT FEATURES
FINAL DATA OF
SALE UPDATED
TO CENTRAL
SERVER
DATA OF USER
ACTIVATED
EACH LASER TAG
DATA RECOGNISED
CASH MEMO TO
CUSTOMER AND
SHOPKEEPER
CARD
EJECTED
CARD
INSERTED

4.  The system is a three tier system with central PDS department as the
controlling body.
 Under it comes the national godowns.
 National godowns are connected to state godowns.
 State godowns are connected to district godowns.
 The fair price shops are to be made privatized. The logistics of
transportation between shops and district godowns is the responsibility of
shops. Shop owners to get a fixed salary each month for running the shop
and a certain amount of commission for the logistics.
 Two types of swipe cards: one for customers and other for use of shops,
district and state godowns. The one who buys need to swap. When the state
receives its share of food grains from the center, it swipes its state godown
card and reads barcode of all incoming food packets, thereby data is
updated to system. When district godown receives its share from the state, it
swipes its godown card and reads all barcodes of all packets it is receiving.
When the shop buys, it swipes its shop card and reads all barcodes of
packets it receives. Data of each transaction at each level updated and
monitored by the software itself so that NO LEAKAGES OCCUR.
THE HIERARCHIAL SYSTEM IN DETAIL
CENTRAL PDS DEPARTMENT
STATE
GODOWNS
DISTRICT
GODOWNS
FAIR PRICE
SHOPS
DEPARTMENTS
UNDER PDS

5. SALIENT FEATURES OF DEMAND AND SUPPLY
 In the first month, the fair price shop owner needs to send his carriage truck to the district godown to collect his share
of number of ration packets. His share is actually the sum of shares of all registered customers.
 The transaction between shop owner and district godown is also carried out in a similar manner as in a transaction
between customer and shop i.e. by use of shop-owner’s swipe card and barcode reader recording barcode of each
packet of food grain handed over to the shop keeper.
 The central software monitors the sales of the particular shop. In case the shop sells all its rations, the next month he
is allotted the same amount. In case he sells less than full amount, the next month he is allotted total rations minus his
remaining stock i.e. if a shop brought 40kg one month and sold 35kgs and has 5kgs left, then next month he will be
allotted (40-5) kgs or 35kgs. This allotment will be decided by the pre-programmed software.
 In case the shop sells very less like 5kgs out of his allotted 40kgs for some months continuously, the software may
choose not to allot him rations next month or wait until he sells off his stock.
 Based on the software’s decision on how much to allot to respective shops it says the state godowns the amount of
food grains it should dispatch to each district godown. The total allocation of the district is the sum total of allocations
of all shops under it.
 The shops are required to collect their pre-determined share from the district godowns before the onset of next month.
The logistics of transportation between shops and district godowns is the responsibility of the shops.
 The central body regulating E-PDS will have knowledge about consumption of each state from data generated by the
software and from time to time replenish the state godowns so that they neither run out of stock nor have excess of
stock at any point of time.

6. LAYOUT OF DATABASE CONTROL SYSTEM
 Each purchase throughout nation updated
 Each state consumption
 Amount to be sent to each state
 Amount to be sent to each district
 Amount to be sent to each shop
 Receipt of each transaction
 Amount to be brought from district godown
Barcode of packages
Details of bill
and demand
Central server
Central PDS
State PDS
District PDS
Shops

7. Analyze census data and decide areas where shops need to be set-up.
Analyze census data and make database of each people in country. Each person should have
a unique identification number and corresponding to which a PDS-card is to be issued.
According to database locate individuals not covered under the scheme and work towards
integrating them into the system.
While giving away swipe cards, all details to be verified and updated in database which
includes user’s biometrics like fingerprints etc.
Analyze data of consumption, demand and supply and accordingly advice government on
amount of each type of food grain required at what time of the year.
Check quality of food grains and strive to improve them.
Check regularly whether demand and supply met at each part of the nation and mitigate any
problems arising in the process.
Review whole process time and again and submit report to government and planning
commission.
Tasks of various departments under PDS

8. Line of action
In each
month the
amount to
be allocated
to each shop
decided by
software
and notified
to respective
district
godowns.
Software
calculates
total amount
to be sent to
each district
based on
allocation of
shops under
it and notify
state
godowns.
From data of
consumptio
n of each
month and
lasting stock,
state
godowns
replenished
from time to
time by
national
godowns.
In each shop
and
godowns all
transactions
with swipe
cards.
Each
transaction
updated.
While a
customer
comes to buy,
software tells
buyer and shop
keeper how
much more of
each type of
food grain he is
entitled to
take.
Buying and
selling of each
product is
actually
handing over
pre-packaged
packets of 1kg
of each food
item.
Bill of shop
transactions
remain with
buyer,
shopkeeper
and central
data.
Software keeps
track of stocks
in each level
i.e. at each
shop and
godown.
In case of any
discrepancy in
process,
software
automatically
identifies it
and brings
under notice of
central PDS
departments.

9. MERITS OF E-PDS:
 No corruption chances as all records of each pound of food grain is maintained.
 Supply as per demand. So, no extra stock in states or districts. Extra buffer stock retained only at national godowns and
government can clearly plan its use.
 Wastage very efficiently brought down.
 With system of pre-packed packets, the problem of shopkeepers actually using faulty weights and giving away less quantity
of ration, has been done away with.
 Stocks always available as demand previously known and accordingly supply sent.
 Government gets regular data about consumption of states.
 No monitoring bodies required to be maintained. All transactions and stock details are always available in the database.
 With in hand knowledge of demand, supply, and consumption, government can effectively buy, sell required amount of food
grains from farmers and regulate their quality .
 With available data, government can efficiently manage and regulate subsidized rates.
 Take scheme to each people of the country.
 Problem of false cards done away with by use of bio-metrics while issuing of cards.
 The swipe ration card itself is a new form of identity for people other than voter id cards, pan cards, passports and driving
license.

10. CHALLENGES AND MITIGATION
Computer proficiency
is required : So, each
shopkeeper need to
be given short term
training to make
acquainted with the
process and using it.
Breakdown of
machinery and web
link : a computer
hardware expert need
to be kept at hand at
district level who
looks after these
problems.
Rotting of items: a
system also need to
be included in
software to report
barcode of packages
that have gone waste
and subsequent
process to remove
them and adjust
supplies.
Tampering of
packages: packaging
need to be state of
art to prevent
tampering or an
electronic weighing
machine may be
placed in shops for
verification by
customers.
People need to be made
aware of the workings of
process and their part in
ensuring they are not
fooled in any way e.g.
they should ensure that
the very packages that are
tagged are delivered to
them. Again they should
ensure no extra package
being tagged and kept
aside undelivered.
A process of receiving
complaints and
ensuring they are
looked after.

11. REFERENCES:
Department of food and public distribution
Website: http://www.macroscan.com/anl/may11/pdf/Food_Flows.pdf
Wikipedia page on PDS: en.wikipedia.org/wiki/Public_Distribution_System
Statistics on Indian economy and society
The Hindu (newspaper and website)
Press Information Bureau Report on Food Security and revamp of PDS food grain Quality Control
Planning Commission 9th FYP on FPS and malpractices
Performance Evaluation of Targeted Public Distribution System (TPDS) (Planning Commission 2005)
Wadhwa Committee Report on Public Distribution System in India
Thank you