2. PUBLIC DISTRIBUTION SYSTEM-
A BRIEF OUTLOOK
Public distribution system is an Indian food security system
managed by both central and state governments established in
1997. It serves two important goals .Firstly ,guaranteeing
stable selling price for farmers . Secondly, it caters to the need
of around 18 million poor families of basic food commodities(
rice, wheat, sugar & kerosene) at affordable prices.

3. Acc. To TPDS scheme 470000 ration shops
Were established to act as an interface b/w
GOI & the underprivileged society of
India.
gov. issues BPL card to those who do not
Have regular source of income & come
Under BPL as a proof to lift up grains
India has the 2nd largest food stock ,about
74 million tonnes in a year. This is a
Good quantity to fight hunger in India &
Signifies atmosphere to implement PDS.
• As per new york times 1/4th
of these shops are
corrupted.i.e they divert the
food , black market it,sell it
to poors at a bit higher
prices.
• But the sorry fact is that India
has only 64 million tonnes
storage capacity & so there is
a wastage of 1000 of tonnes of
food every year owing to the
lack infrastructure, careless
• acc. to plannig commission
there are few areas with
excess BPL cards than
required,while few areas are
there where BPL cards are
issued less in no. than
identified.

4. OBJECTIVES OF PDS & ITS FAILURES
• As per planning commission these are
getting merely 1-2 kg of food
commodities & that too not every
commodity.
• The scene today is miserable as
there are a no. of complaints
against the inferior quality of
grains (as per planning
commission)
• As per plannig commision report-
2012 only 56% of the targeted
families are benefited due to
corruption, lack of awareness, lack of
vigilant control.
 About 18 million
underprivileged families
were to be benefited by
this system
GOI ensures quality
distribution of grains to
the poors through PDS
scheme.

5. FOOD STAMPS can be a good
option as its success in A.P.(A.P.
gov. has brought down 50%
diversions this way.
Food credit card can be one
option as in Iran. Gov. can do
collabration with visa,etc.
FAST FACTS:
1.FPS’s have become arbiter these days, filling their inner chasm by decieving none but the poorest.
2.Graph clearly depicts the twin headed serpent of bribery & corruption in existing BPL card card
system.
1600
1700
1800
1900
eligilble BPL
families
cards issued3.Acc. to planning commission report
2005 there few states where BPL cards
issued are less in no. than households
identified whereas few states where no.of
BPL cards are more than that identified.
4.The above lamented survey reflects
upon lack of awareness, serpent of
corruption & bribery laying down its
eggs & flourishing.
RECOMENDATIONS

6. This shall weed out large no. off
diversion done by FPS.(as in A.P.)
This will increase the stock of food
grains.
This would ensure proper quantity of
food to the BPL.
 To carry out food credit card system there should
be swiping machine in every fair price shop from
which poor can swipe his card & accordingly his
account of subsidies as well as FPS’s account can
be checked through a COMMON DATABASE.
 Gov. can tie up with regional banks to provide
food credit cards / food stamps in order to
maintain their uniquiness.
 FUNDING for swiping machine can be done
through public private patnership.
 SUPPLIMENTARY NUTRITIONAL
ASSISTANCE PROGRAM run by U.S.A. gov.
Serve as a role model for food stamps/ credit cards
 GOI should announce phillanthrophic packages as
incentives to the states which curb the the
corruption in BPL system successfully.
 Vigilance committee shall check the ratio of
supply & demand of food grains with the help of
stamps possessed by FPS or the swiping machine
time to time.
LIMITATIONS OF
STAMPS/CARDS :
Quality of food grains can’ t be
controlled.
Unpredectable availability of
grains at FPS
Irregular hours of operation of
FPS will make this system futile.
People may not go to FPS even
having stamps/ food cards

7.  CASH TRANSFER is direct payment of money to underprivileged society(BPL & AAY) of the
country. There are various plans to carry out such scheme varying worldwide. Case study:
IMPLEMENTATION OF ABOVE: IMPLEMENTATION IN INDIA
 NGO’S are a game changer here like(LAMPERT * since India can’t afford lump sum policy so it
FAMILY FOUNDATION) who have a role to play in transfer to surmount 3 requirements of needy:
Proper implementation of system. A) fulfilling basic food requirements
 FUNDING is largely assisted by NGO’s( GOOGLE B) scope of a reform in their lives e.g. buying a
, GOOD VENTURES) cow. ; c) physiological independency
 AWARENESS for the above is done by national * acc. To OVERSEAS DEVELOPMENT INSTIT-
Public radio, regional newspapers & channels, blogs UTE survey 2009 :: poor countries as Nigeria,
In magzines, local ngo’s. Kenya, Africa surmounted their fears of inflation
CAUTION & have worked satisfactorily.
GIVE DIRECTLY is an organization to make
direct money transfer to extreme poor class of
Kenya. It follows LUMP SUM policy of
transferring money in large amounts. It is largely
assisted by NGO’s
In Iran gov. has done collaboration with maestro
card in which it transfers cash to the poors. They
can use it for food , health care, start a small
reform in their lives like buying a cow
As GOI buys food from farmers at economic cost for
PDS. So if subsidy is given in form of cash it would be v.
meager to the market value.
Farmers insecurity
will increase as GOI
stops buying food
from them for PDS
Any
delay in
cash
payment
will
result in
starvatio
CAUTI
ON

8. PRIVATIZATION can be a good tool in making PDS efficient. Like
electricity gov. can ask private org. to look after storage or distribution or
identification of BPL .
IMPLEMENTATION
* * No.Illegal BPL cards will come
in existence.
• India should be divided region wise in 5 parts
like nothern, western, central,etc & bidding should * proper storage could be done as infrast-
Be invited from private sectors(tata, reliance, ABG) ructure would come in due to inc. in
• Gov. can enter in public-private deal in which resources.
May be the private be asked to takeresponsibility of NEGATIVE SOCIO IMPACT
Storage & identification of BPL families, whereas
Gov. buys the grains , transport it, publish stamp *Proper interaction b/w gov. &
Or cards, etc. private sector will be needed
• Plannig commission report says in the total or it may turn into a catastro-
Expenditure of about 60k crores, an estimated -phe.
20,747 crores goes to the serpent of corruption. So *if gov. reimburses the expen-
Even if GOI gives incentives to privates(heavy tax -diture of private it should be
Relaxation,easing norms towards private sector)it on time to avoid any conflicti-
Won’t be going through so much loss;an estimation -on b/w the 2 as in ASAD LTD.case
NEGATIVE SOCIO IMPACT
BENEFITS REEPED BY
POORS:IMPLEMENTATION
TECHNIQUE:

9. India has largest stock of grains in world after China. It spends 750 billion per
year(1% of GDP).PRESENT SCENARIO:
 FCI has total 37.73 million hectares of land.
 According to census 2011 India had about 74 million tonnes of food
commodities . But the sorry fact is that it only has 64 million tonnes storage
capacity.
 Circuit 1 Circuit 2
Location Storage
Size (MTs)
Location Storage
Size (MTs)
Base Depot
Moga 2,00,000
Base Depot
Kaithal 2,00,000
Field Depots
Chennai 25,000
Field Depots
Navi Mumbai 50,000
Coimbatore 25,000 Hooghly 25,000
Bangalore 25,000

10. complaints
registered
action taken
bypanchayat
complaits made to
panchayat
The 2nd team would also check
COMPLAINTS BOX of each tehsil
& take req. action
From the above chart it is evident that gram
panchayats needs to be strictly checked.
Acc. to plannig commission TALUKA
OFFICIALS are more effient to the village
panchayats. So they must be given
responsibilities.
This 2nd team should be answerable to
central gov.’s concerned authority &

11. FAST FACTS
acc. To planning commission only 13.6% BPL cardholder
bother to lift food from FPS.
Acc. To planning commission only 53% of BPL cardhol-
-ders knows the where about of vigilance or any mode to
Complaint.
. RECOMENDATIONS
Local NGO’s should spread the essence of awareness.
Local t v channels & newspapers should be made mandatory to check & spread
awareness of poor. Thus making media active in this field.
FPS should be asked to display rate charts so that could not cheat the poors. This needs
to be checked by vigilance team too.
Citizen charter should be in picture for effective PDS , this would ensure peoples active
involment against the false practise of the FPS’s.
PUBLIC PARTICIPATION is must. To encourage commeners gov. can announce their
honout in social impact awards ceremony or on 15th aug. / 26 jan… .
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
BPL
househol
ds
identfied
cards
ssued
Column1From the graph (planning commission 2005) it is evident that in
few states the serpent of corruption is making hay while in few
issued cards are well less than identified, lack of awareness.

12. 1) Overseas development institute survey to UNO- 2009
2) Give directly: introducing a radical new way to give,
Kenya.
3) Department of food & public distribution(ministry of food
& consumer affairs)
4) Planning commission report on TPDS -2005
5) Iran public distribution system(www.ncbi.nim.nih.gov)
6) Supplimental nutrition assistance program , U.S.A
7) Food corporation of India – storage plan(rtc, mtf-2011)
8) Electricity in india- privatization of distribution sector
9) Give well (www.givewell.org/)
10) New York's Times report- PDS in India