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MANTHAN TOPIC – PUBLIC DISTRIBUTION
SYSTEM
AADHAR BENEFIT CARD SYSTEM-
A new card based monetary system to ensure proper subsidy.
TEAM DETAILS –
VIAYSHAN SINGH ,SHUBHAM VERMA, ISHAN SAXENA, AYUSH VERMA,
PAWAN PARIHAR.
• The food grains supplied by the ration shops are not
enough to meet the consumption needs of the poor or
are of inferior quality
• The targeted PDS is costly and gives rise to much
corruption in the process of extricating the poor from
those who are less needy
Public distribution
system
• FCI itself does not directly distribute any stock under
PDS and its operations end at the exit of the stock from
its depots
Problems in public distribution systemProblems in public distribution system
PDS and its operations end at the exit of the stock from
its depots
• FCI by itself is not a Decision making authority, it does
not decide anything about the MSP, Imports or
Exports. It just implements the decisions made by the
Ministry of Food and Ministry of Agriculture
Food corporation of
India
• Middlemen are the people involved in transferring
goods or money(subsidy) from authority to common
people
• Being at such position, they are free to do corruption
as rural population doesn’t know about their rights as
they should
Middlemen
SolutionsSolutions
• PDS must form a core committee involving commercial storage and transport
companies to ensure minimum chances of corruption
• The committee will store and transport at costs subsidized by government
Public distribution system
Food corporation of India
• FCI must ensure that stocks are received by the other party, and not just the
exit of stocks from the depots
• FCI must become a member of a committee which includes ministry of food
and agriculture at same level to take decisions about MSP, imports and
exports
Food corporation of India
• Middlemen will not be needed when subsidy is directly transferred into
respective bank accounts
middlemen
Applications and meritsApplications and merits
Aadhar
•Aadhar card would be linked to bank accounts
•Only single person’s account from the family would be linked
•Subsidy will be transferred directly into accounts reading the bar code at the
bottom, machines would be provided at leading retail and ration stores
PDSPDS
•PDS would collaborate with retail chain stores that would store and sell food
grains
•Bar code readers in the store would read the bar codes at the bottom of the
aadhar card and transfer subsidy money into linked account
Middlemen
•There will be no need of middlemen as whole sole distribution will be in the
hands of government or in collaboration with public limited companies
ADHAAR CARD BENEFIT SYSTEM
• IT WILL ELIMINATE THE RATION
SHOP CHAOS IN OUR TOWNS.
•THE PRICES WILL BE SAME BUT THE
SUBSIDISED AMOUNT WILL BESUBSIDISED AMOUNT WILL BE
TRANSFERED TO ACCOUNTS OF BPL
PEOPLE.
*ADHAAR IDENDITY IS BASED
BIOMETRIX SYSTEM SO CANNOT BE
MANUPULATED.
ADVANTAGES OVER TRADITIONAL
SYSTEM
ADVANTAGES OVER TRADITIONAL
SYSTEM
• PEOPLE WILL BE ABLE TO BUY
IMPORTANT ITEMS FROM
ANYWHERE BUT WILL GET ITS
SUBSIDY DIRECTLY IN THERE
ACCOUNTS
• A POOR FARMER NOW CAN BUY
UNEQUAL DISTRIBUTION
• A POOR FARMER NOW CAN BUY
EVEN THINGS OTHER THAN
GRAINS WHICH HE DESIRES BY
MONEY FROM SUBSIDY IN
GRAINS.
• WILL PUT A HALT ON BLACK
MARKETING OF VALUABLE
GRAINS FOR POOR.

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INNOVATIONHUB2013

  • 1. MANTHAN TOPIC – PUBLIC DISTRIBUTION SYSTEM AADHAR BENEFIT CARD SYSTEM- A new card based monetary system to ensure proper subsidy. TEAM DETAILS – VIAYSHAN SINGH ,SHUBHAM VERMA, ISHAN SAXENA, AYUSH VERMA, PAWAN PARIHAR.
  • 2. • The food grains supplied by the ration shops are not enough to meet the consumption needs of the poor or are of inferior quality • The targeted PDS is costly and gives rise to much corruption in the process of extricating the poor from those who are less needy Public distribution system • FCI itself does not directly distribute any stock under PDS and its operations end at the exit of the stock from its depots Problems in public distribution systemProblems in public distribution system PDS and its operations end at the exit of the stock from its depots • FCI by itself is not a Decision making authority, it does not decide anything about the MSP, Imports or Exports. It just implements the decisions made by the Ministry of Food and Ministry of Agriculture Food corporation of India • Middlemen are the people involved in transferring goods or money(subsidy) from authority to common people • Being at such position, they are free to do corruption as rural population doesn’t know about their rights as they should Middlemen
  • 3. SolutionsSolutions • PDS must form a core committee involving commercial storage and transport companies to ensure minimum chances of corruption • The committee will store and transport at costs subsidized by government Public distribution system Food corporation of India • FCI must ensure that stocks are received by the other party, and not just the exit of stocks from the depots • FCI must become a member of a committee which includes ministry of food and agriculture at same level to take decisions about MSP, imports and exports Food corporation of India • Middlemen will not be needed when subsidy is directly transferred into respective bank accounts middlemen
  • 4. Applications and meritsApplications and merits Aadhar •Aadhar card would be linked to bank accounts •Only single person’s account from the family would be linked •Subsidy will be transferred directly into accounts reading the bar code at the bottom, machines would be provided at leading retail and ration stores PDSPDS •PDS would collaborate with retail chain stores that would store and sell food grains •Bar code readers in the store would read the bar codes at the bottom of the aadhar card and transfer subsidy money into linked account Middlemen •There will be no need of middlemen as whole sole distribution will be in the hands of government or in collaboration with public limited companies
  • 5. ADHAAR CARD BENEFIT SYSTEM • IT WILL ELIMINATE THE RATION SHOP CHAOS IN OUR TOWNS. •THE PRICES WILL BE SAME BUT THE SUBSIDISED AMOUNT WILL BESUBSIDISED AMOUNT WILL BE TRANSFERED TO ACCOUNTS OF BPL PEOPLE. *ADHAAR IDENDITY IS BASED BIOMETRIX SYSTEM SO CANNOT BE MANUPULATED.
  • 6. ADVANTAGES OVER TRADITIONAL SYSTEM ADVANTAGES OVER TRADITIONAL SYSTEM • PEOPLE WILL BE ABLE TO BUY IMPORTANT ITEMS FROM ANYWHERE BUT WILL GET ITS SUBSIDY DIRECTLY IN THERE ACCOUNTS • A POOR FARMER NOW CAN BUY UNEQUAL DISTRIBUTION • A POOR FARMER NOW CAN BUY EVEN THINGS OTHER THAN GRAINS WHICH HE DESIRES BY MONEY FROM SUBSIDY IN GRAINS. • WILL PUT A HALT ON BLACK MARKETING OF VALUABLE GRAINS FOR POOR.
  • 7. IMPLEMENTATION OF THE ADHAAR BENEFIT CARD SYSTEM- •The adhaar card or UID cards are already been introduced by Indian government with excellent biometric data base of every individual. •All we need to do now is to link this adhaar card bar code to the bank account numbers of people. •Every shop having average turnover in town or city should me made compulsory to keep bare code reader with network that is monitored by Indian government. •For small villages having network or electricity crisis temporary or mobile shops may•For small villages having network or electricity crisis temporary or mobile shops may be made. •All chains of ration shops can also be modified for the new system. •There should be a maximum limit set on every card according to the family. •Government’s millions of rupee fund which is allotted for subsidy will finally be reaching to the people with almost 90% accuracy.
  • 8. A key feature of the Aadhaar scheme states that : “ The UIDAI's clear authentication and verification processes will allow banks to network with village-based Business Correspondents such as self-help groups and kirana stores. Customers will be able to withdraw money and make deposits at the local Business Correspondent. Multiple Business Correspondents at the local level will also give customers a choice of Business Correspondents. This will make customers, particularly in villages, less vulnerable to local power structures, and lower the risk of being exploited by Business Correspondents. ” “ The UIDAI's clear authentication and verification processes will allow banks to network with ADVANCE SCOPES OF ADHAAR BENEFIT SYSTEM- “ The UIDAI's clear authentication and verification processes will allow banks to network with village-based Business Correspondents such as self-help groups and kirana stores. Customers will be able to withdraw money and make deposits at the local Business Correspondent. Multiple Business Correspondents at the local level will also give customers a choice of Business Correspondents. This will make customers, particularly in villages, less vulnerable to local power structures, and lower the risk of being exploited by Business Correspondents. ”
  • 9. This idea would be able to impact 300 million people through virtual money using Aadhaar Card Food Corporation of India(FCI) would be given authority to check: Effective price regulation(instead of support) operation Collection and distribution of food grains Maintaining at least enough stock for yearlong food security Manage extra amount of grains for exports Dominate market price esp. commodity market (to avoid any nuisance such as black marketing (e.g. Onions)) Stocks were received by the other party, not just the exit of stocks from depots FCI Must become a member of a committee which includes ministry of food and agriculture at same level to take decisions about MSP, imports and exports
  • 10. : Monitering Mechanism: An authority would be formedAn authority would be formed to check that subsidy is given only to people falling in BPL. The concerned authority will be made transparent and will be under RTI Act. Aadhaar cards would be the sole criteria of getting subsidy Definiton of poor must be cleared and the authority should examine the whole process of identification of BPL families
  • 11. CHALLENGES AND MITIGATION FACTORS It would be practically dificult to ensure that every shop has bar code reader machine Everybody who comes under under bpl does not hav aadhaar card Government should ensure that all have aadhar cards It should be made compulsary to have bar code reader machine Maintaing the quality off foodgrains will still remain unensured The possibility of blackmarketting will still persist CHALLENGES AND RISKS Blacmarketting could be controlled by campaign and awareness programmes Fci should ensure the quality of food MITIGATION FACTORS
  • 12. References:  Ahmed Touseef, Rashida Amir, Francisco Espejo and Aulo Gelli, Ute Meir 2007. Food for education improves Girls education: the Pakistan Girls education programme. World Food Programme report, 3rd September 2007. Attre, Neha 2009. UP looks up to Tamil Nadu to improve Mid Day Meal scheme. Indian Express, 9th March 2009, http://www.indianexpress.com/news/up-looks-up- to tamilnadu-to-improve-midday/432646/, accessed on 15th September 2010.  BBC 2010a. Asian monsoon's range of devastation. http://www.bbc.co.uk/news/world-south-asia-10951517, 12th August 2010, accessed on14th August 2010. Performance Evaluation Of Targeted Public Distribution System (TPDS) Planning Commision 2005. Wadhwa Committee report on Public Distribution system in India.