This presentation shows how Public Distribution System works in helping BPL people for their daily survival in Indian Context.

2. UNIVERSITY OF AGRICULTURAL SCIENCES
BENGALURU
Course: Agricultural Research, Research Ethics &
Rural Development Programmes
SUBMITTED TO-
Dr. Murtuza Khan
Professor
Dept. of Ag. Economics
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3. Public Distribution System
3
Presenter
SAMJHAUTA THAPA
MSc. Jr.
DEPT. OF AGRICULTURAL ECONOMICS

4. Flow of Presentation
Evolution of Public Distribution System
Procurement of Grains
Issues
Scams
New Public Distribution System Reforms
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5. 5

6. EVOLUTION OF PUBLICDISTRIBUTION
SYSTEM
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7. PublicDistributionSystem (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.
PDS is a national food security system that distributes
subsidized food to India’s poor.
It means distribution of essential commodities to a
large number of people through a network of Fair Price
Shops (FPS) on recurring basis.
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8. Objectives
 Providing food grains and other essential items to
vulnerable sections of the society at reasonable
prices
 To put an indirect check on the open market prices
of various items.
 To attempt socialization in the matter of
distribution of essential commodities.
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9. Historical Aspects of PDS
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• Till 1992, PDS was a general entitlement scheme for all
consumers without any specific target.
• But in 1992, PDS became RPDS (Revamped Public
Distribution System) focusing the poor families,
especially in the far-flung, hilly, remote and inaccessible
areas.
• In 1997, RPDS became TPDS (Targeted Public
Distribution System) which established Fair Price
Shops for the distribution of food grains at subsidized
rates.
• Antyodaya AnnaYojana - April, 2002

10. Procurement of Grains
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11. Procurement, Allocation and
Distribution
Central government provides guidelines for state
government
Food and Civil supply department of state will take
care of its execution.
Contd...
Farmer
or
Producer
FCI States
Fair
Price
Shops
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12. 12

13. 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011-
05 06 07 08 09 10 11 12
ProcurementRice 24 26.6 26.3 26.2 32.8 32.5 31.1 37.91
ProcurementWheat 16.8 14.7 9.2 11.1 22.6 25.3 25.9 28.33
ProcurementTotal 40.8 41.4 35.5 37.4 55.5 57.9 56.7 66.35
Quantities
in
million
tonnes
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Procurement of food grains
70
60
50
40
30
20
10
0

14. 2007-08 2008-09 2009-10 2010-11 2011-12
BPL 151.25 156.56 165.45 174.49 159.89
APL 89.64 94.2 160.63 166.16 147.21
AAY 94.37 95.25 97.94 96.55 89.74
200
180
160
140
120
100
80
60
40
20
0
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Figures
in
lakh
tonnes
Scheme wise off take of food grain from central pool
of India (2007 to February, 2012)

15. Scale of issue & CIP
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Commodity APL BPL AAY
Rice 8.30 5.65 3.00
Wheat 6.10 4.15 2.00
Year Scale of issue
1997 10 kg/card
2002 25 kg/card
2019 35 kg/card for BPL & 15
kg/card for APL
Central issue price ( price per kg in ₹ ) in 2018-19
Scale of issue

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17. Issues
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18. • All incoming grains accepted even if buffer stock
is filled creating a shortage in the open market.
• The gap between required and existing storage
capacity & also rotting or damaging of food
grains during storage.
• Leakage and diversion of food grains during
transportation & also poor transportation system.
• Incorrect identification of beneficiaries(BPL
families).
• The shop owners have created a large number of
bogus cards or ghost cards (cards for nonexistent
people) to sell food grains in the open market.
• Inadequate food grains at Fair Price Shop.
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19. Diversion of Food Grains
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At the All India level, diversion of PDS grains
remains a serious issue.
Average diversion is 54% during 2018-19
 Bihar, Utter Pradesh, Assam, and Rajasthan 85-
90%
 Jharkhand- 47%
 Orissa- 30%
(PDS survey, June 2019) Contd.....

20. Wastage of Food Stock
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 Huge amount wasted during storage.
 Spoiled by rodents, insect and moisture.
 Nearly 0.5 Mt of wheat and 4 Mt of rice
spoiled annually.
 Deceitful dealers replace the food stock with
inferior stock.
 Supplies are not able to meet the demand of food.

21. Scams
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22. Scams
 Rajkot PDS Scam (July 2019)
Pilfering of lakhs Kg of food grains meant for poor.
 Uttarakhand PDS Scam (October 2017)
Irregularities worth over Rs.600 crore was detected
 Meghalaya PDS Scam (February 2012)
367 sacks of rice and 35 sacks of sugar black-
marketed
 Maharashtra PDS Scam (December 2011)
4.2 million bogus cards found
Scam worth ₹ 25000 crores
 Karnataka PDS Scam (July 2011)
Worth ₹ 1738 crores
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23. Public Distribution System
Reforms
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24. Reforms
 Introducing IT in present PDS
 National Information Utility (NIU) resource
 Token-agnostic technology solution
 Using Aadhar for PDS enrolment
 Use of smart cards
 Direct transfer of subsidies
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25. • Aadhaar Linked and digitized ration cards: This
allows online entry and verification of beneficiary data. It
also enables online tracking of monthly entitlements and
off-take of food grains by beneficiaries.
• Computerized Fair Price Shops: FPS automated by
installing ‘Point of Sale’ device to swap the ration card. It
authenticates the beneficiaries and records the quantity of
subsidized grains given to a family.
• Use of GPS technology: Use of Global Positioning
System (GPS) technology to track the movement of trucks
carrying food grains from state depots to FPS which can
help to prevent diversion.
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26. • SMS-based monitoring: Allows monitoring by
citizens so they can register their mobile numbers and
send/receive SMS alerts during dispatch and arrival
of TPDS commodities.
• Use of web-based citizen’s portal: Public Grievance
Redressal Machineries, such as a toll-free number for
call centers to register complaints or suggestions.
• DBT: Under the Direct Benefit Transfer scheme,
cash is transferred to the beneficiaries’ account
instead of food grains as subsidy component. They
will be free to buy food grains from anywhere in the
market.
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27. References
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 http://pdsportal.nic.in
 www.indiastat.com
 www.wikipedia.co.in
 Indian Economy (Pratiyodita Darpan)
 Economic Survey of India
 ZENITH International Journal of Business
Economics & Management Research Vol.1 Issue 1,
Oct 2011, ISSN 2249 8826

28. Any Question ???
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