1. THEME:
PLUCKING THE LEAKS: Improving reach and
efficiency of the Public Distribution System
TOWARDS A TRANSPARENT
PUBLIC DISTRIBUTION SYSTEM
MANTHAN 2014
TEAM DETAILS
TEORICO
ANJALI SINGH, SHREEYAM JAIN, APURVA SHARMA, PRITY SINGH,
AISHWARYA SHREE

2.  LOOPHOLES
Prima Facie the Bill seems to be a
good step in the right direction.
However, many crucial and
complicated legal issues have yet
to be resolved by the Bill. Issues
like
 transparency,
 accountability,
 e-governance and
 use of ICT,
 dispute resolution mechanism,
 Centre-State Coordination,
 actions against corrupt practices,
etc. are still to be incorporated in
proper perspective and in greater
details.
 SOLUTIONS
 The Central Government Shall Amend or
modify schedule of rates and quantities
 Decide on number of families in the
priority households, based on state-wise
poverty ratio and on the additional
number of persons belonging to the
general household ,in such a manner
that in each state the combined
coverage under the TPDS belonging to
priority and general household are 75%
and 50% of the rural and urban
population, respectively.
 Prescribe the guidelines for
identification of priority and general
household.
 Within the state, identification of
priority and general household shall be
done by State Govt. (Provided that no
household meeting the exclusion
criteria prescribed by the central
government is included either in the
priority or the general households.)
FOOD SECURITY BILL: LOOPHOLES AND
SOLUTIONS

3. CONCRETE MECHANISM FOR APPOINTMENT OF
RETAILERS
PROBLEMS
• The fair price shops are run by
private operators who are
generally elected by Mukhiyas
and there is no eligibility
criteria for such elections.
• These operators are not
remunerated for their jobs and
the work is done without any
proper supervision.
• Also the existence of
bureaucratic setup further
creates problems in the
appointment of proper
personnel.
SOLUTIONS
• Remove privatization from
these fair price shops
• Increase the accessibility of
the same to the BPL
families.
• Modernize and organize the
system so as to bring
transparency and user-
friendliness.
• Set up a proper and speedy
system of grievance and
dispute settlement.
IMPLEMENTATION
• The state must take away fair-
price shops from private
operators and give them to
cooperatives, panchayats or
women’s self-help groups
• It can also set up computerized
ledgers in godowns and for other
things, sent out a notifications
that all food-related grievances
must be settled by district
magistrate within 15 days which
shall make such disputes
disposed off speedily
• There shall be transparency with
the advent of the computers as
these technical changes are
caught

4. •The minimum price at which farmers sell their food grains
to the middle men or to the consumers shall be fixed
•The price shall be fixed according to the market rates, the
produce and the demand, considering the interest of
farmers.
PRICE FIXATION
•An officer shall be appointed in every district, who will be
under the supervision of state agricultural ministry.
•The officer shall be a person from an NGO, Agricultural
ministry or a social worker.
•Appointment shall be for small time periods i.e. for 1 or 2
years.
APPOINTMENTS
•Such officer will decide the minimum price at which
farmers can sell their produce.
•The price shall be decided in consultation with the farmers.
•The farmers will approach the officer
IMPLEMENTATION
PROTECTION OF FARMERS FROM
SELLING THEIR PRODUCE AT MINIMAL
RATES

5. LOCAL DISTRIBUTION OF LOCAL
PROCUREMENT
Distribution of grain procured from beyond the district zone should be
resorted to only if there is a shortfall in local procurement. This will allow:
• Procurement, and therefore support to farmers, from all areas .
• Locally preferred grain to be distributed
• Drastically cut down storage and transportation costs
• Help curb corruption by allowing easier tracking of grain movements
However, since many areas suffer from deficits, it is important to ensure that
the original intention of the PDS ie : movement of food from surplus to
deficit areas will be ensured by Central govt agencies.
Village level grain banks to be established to encourage local procurement,
storage and distribution to ensure food security

6. GRIEVANCE SETTLEMENT MECHANISM
FOR PUBLIC DISTRIBUTION SYSTEM
• In case of irregularities the common man approaches Mukhiya or Marketing
officer or SDO. Bias investigation takes place. Power concentrated in the hands of
upper cast people.
• At local level the fair price shop keeper must be supervised by the panchayats
and one person from the BPL class shall be selected to keep a check over the
working of PDS shop.
• Any complaint regarding the shop keeper shall be made to the person appointed
from the BPL class and he shall conduct the investigation along with Mukhiya,
MO and SDO.
• Such shopkeeper shall be removed from the responsibility until the investigation
takes place.
• Until the investigation the charge of running the shop shall be given to a
responsible person appointed from the BPL class by the Panchayat.
• If the charge against the Shopkeeper are found to be baseless, such complainant
shall be charged with fine from wrongful implication.
• In case the charged are proved, the shopkeeper shall be removed from the
responsibility

7.  The details that needed to be displayed at the
FPS are;
 i) total number of cards attached to the shop–
BPL & APL,
 ii) monthly allocation made to the shop,
 iii) last month’s issue from the shop,
 iv) issue prices,
 v) scale of issue, and
 vi) authority to report grievances. Panchayats and
Nagar Palikas should oversee the FPSs.
 The Panchayat President and members of
municipalities or other local bodies
 should be informed about the allocation and
actual off-take of FPSs.
 Collectors may use local press to make the public
aware of these details.
 Vigilance committees (VCs) should be formed at
Taluk, District and state
 levels.
 These must be headed by retired district judges or
people having judicial experience of more than 7
years as a additional district judge
BRINGING
TRANSPARENCY
INTO THE
PUBLIC
DISTRIBUTION
SYSTEM

8.  Immediate ban on export of food until malnutrition is ended in the
country.
 Protect farmers from “dumping” of unfairly subsidized imports.
 First call on all natural resources, including land and water, must be
for food. No forcible diversion of land, water and forest resources
away from food production.
 Stop corporatization of agriculture and control of food by
agribusiness corporations.
 Immediate moratorium on genetically modified (GM) seeds, GM food
imports, and use of GM food in government food schemes.
 All speculation and futures trading in food items should be banned.
 Government must eliminate the entry of corporate interests
(including contract farming) and private contractors in food
production, the food market, regulatory bodies and nutrition-related
schemes.
 Governments must not enter into any partnerships with the private
sector where there is a conflict of interests.
 Government must ensure access to safe drinking water and
sanitation for all.
POLICIES TO INCREASE FOOD
PRODUCTION, CONSUMPTION, NUTRITION

9. REFERENCES:
• PDS - Department of Food and Public Distribution, Official website at Ministry of
Consumer Affairs, Food and Public Distribution
http://www.fcamin.nic.in/dfpd_html/index.asp
• Public Distribution System (PDS), in 10th Plan at Planning Commission of India:
http://planningcommission.nic.in/plans/planrel/fiveyr/10th/volume2/v2_ch3_4
.pdf
• Public Distribution System: Introduction at Right to Food Campaign
http://www.righttofoodindia.org/pds/pds_intro.html
Official Website of FCI
http://fciweb.nic.in/
• Performance Evaluation of Targeted Public Distribution System (TPDS). Retrieved
from http://planningcommission.nic.in/reports/peoreport/peo/peo_tpds.pdf
• Bhalla, Surjit S. (2012, Jan 7). Enhancing Corruption the NAC Way. Oxus
Investments. Retrieved from
http://www.oxusinvestments.com/files/pdf/169enhancingcorruptiontheNACway.
pdf
• Press Information Bureau (2012, Dec 17). Review of Foodgrains Procurement
Policy. Retrieved from http://pib.nic.in/newsite/erelease.aspx?relid=90797