1. Plugging the leaks: Improving reach and
efficiency of the Public
Distribution System
By Vineet Chaudhary

2. Leaky system: A brief history
Former Prime Minister Rajeev Gandhi used to say “I send Rs
100 for poor, but only Rs 15 is delivered.”
Several PDS scams in last few years like bogus ration card scam in
Maharashtra (42 lakh bogus ration cards issued in the state between
1995 and 2009), Arunachal Pradesh PDS scam, Gegong Apang PDS scam
to name only a few.
The central vigilance committee headed by former Supreme Court judge
Justice D P Wadhwa in its report said that the Rs. 28,000 crore subsidy
was being pocketed by vested interest.

3. Reasons Behind Faulty System
Rampant Corruption
in policy making as
well as bureaucracy.
Massive population:
Its difficult to reach
out to every single
citizen.
Identity Politics: It is
both a cause and an
outcome of faulty
delivery mechanism.
Haphazard
development.

4. Effect on Society
Hunger
&
Malnutrition
Wastage
of
Food
Disparity

5. Solutions
Change in
Rationing Policy
Direct Cash
Transfer Benefits
Privatization of
P.D.S.
• More emphasis on local
production, local
processing and local
consumption.
• This is the scheme to
eliminate middle-men.
• Storage and
distribution can be
privatized to minimize
corruption.

6. Change in Rationing Policy
• Most of the food is produced in villages.
• Most of the hungry people live in rural areas.Why?
• Local production, procurement, storage, processing and
distribution.
• This would also push industry towards villages.
Way
Forward…
• Food grain loss and malpractices in transportation and
storage can be reduced efficiently.
• The overall cost of food grain can be reduced, thus less
subsidy has to be given by the government.
Benefits

7. Direct Cash TransferBenefits
No middle-
men. Hence,
corruption is
very less.
Challenges
Around 40%
Indians
don’t have
bank
accounts
Mitigation
Conventional
methods like
money order
can be used.

8. Privatization of P.D.S.
Need
• Rampant corruption from the first stage till the last stage in P.D.S.
• Delivery end is more corrupt than the procuring end.
What to
privatize?
• Transportation and storage.
• Distribution.
Method
• Through tender: Government can hire private transportation in lieu of fixed
tender.
• General stores can take over ration shops where food coupons could be
exchanged with ration.

9. Challenges in Implementation
Political Will
• Politics of identity
takes over politics
of policy
• Corruption
flowing upside-
down.
Inefficient
Bureaucracy
• Overload on
bureaucrats.
• Massive
negligence and
corruption
Unawareness
• People don’t
know their rights
• No/under-
popular feedback
mechanism

10. Effective Implementation
Effective P.D.S.
Spreading
awareness
Use of
technology
Better
feedback
system

11. Thank You!