This document discusses improving the reach and efficiency of India's Public Distribution System. It notes that despite government spending, the intended beneficiaries are still not being properly served due to issues like corruption, lack of accountability, and unclear eligibility criteria. Solutions proposed include strengthening oversight, increasing local control, using Aadhaar for identification and tracking, and decentralizing procurement and distribution to involve local governments and cooperatives more directly. Proper implementation of these solutions could help ensure essential goods reach vulnerable groups at subsidized prices, moderate open market costs, and promote more equitable distribution. Challenges include entrenched social inequalities and corruption that would require strong monitoring to overcome.

1. Manthan Topic : Improving Reach and Efficiency
Of the Public Distribution System
Lack of Integrity in Providing Public Services
An approach which would lead to social inequality and equal distribution of public services
TEAM DETAILS
ANKIT MUNSHI, CHETAN GUPTA , HIMANSHI AGGARWAL , NIDHI VIG,
SHIVENDU SHEKHAR

2. In spite of spending a huge amount of Government Revenue on Public distribution services the main target of the society is still not
benefitted
Scope of the problem:
Poor supervision of FPS and lack of accountability have spurred a number of middlemen, who consume a good proportion of the
stock meant for the poor. There is also no clarity as to which families should be included in the BPL list and which excluded. This
results in the genuinely poor being excluded whilst the ineligible get several cards. Awareness about the presence of the PDS and
FPS to poverty-stricken societies, namely the rural poor has been dismal.
Cause:
Corruption is the biggest cause for social inequality in our country. The resources are not being channelized to the right direction
leading to concentration if power in hands of the influential section of the society.
Improper identification of families below poverty line which leads to depriving them from the intended benefits of PDS.
Reasons for choosing the above cause:
PDS is a social welfare and anti-poverty programme which contributes towards the welfare of the below poverty line (BPL) families
by supplying essential commodities like Rice, Wheat, Sugar, Kerosene at reasonable price.
Unequal distribution of necessities to the poorer section of the society has led to increasing number of malnutrition and death by
starvation incidents in the country.

3. Solutions Proposed
Vigilance squad should be strengthened to detect corruption, which is an added expenditure for taxpayers.
Personnel-in-charge of the department should be chosen locally.
Margin of profit should be increased for honest business, in which case the market system is more apt anyway.
F.C.I. and other prominent agencies should provide quality food grains for distribution, which is a tall order for an agency that has no real incentive to do so.
Frequent checks & raids should be conducted to eliminate bogus and duplicate cards, which is again an added expenditure and not fool proof.
The Civil supplies Corporation should open more Fair Price shops in rural areas.
The Fair Price dealers seldom display rate chart and quantity available in the block-boards in front of the shop. This should be enforced.
Decentralization of procurement and distribution.
Panchayat shoud be involved in the PDS system.
FCI and involvement of private sector farmers’ cooperatives.
SHGs, etc. in procurement and distribution.
Merits of the solutions
No centralized authority so issues can be sorted out at local level and benefits provided to poor.
With no middle man changes of pilferage are less and supplies would be regular.
Poor should be knowing about the fair prices shop and what the “Fair Prices” are.

4. Implementation of the Solution
Proper identification of the families below poverty line.
UID/Adhaar can be used for this.
Strict guidelines to be implemented for identifying and dealing with the distributors and retailers of the PDS.
Any family that wants to avail benefit of the PDS system should use Adhaar card for all the purposes.
Stakeholders
Government
Food Corporation of India
UID Authority of India
Village Panchayat
The benefitting family
Leveraging existing Government Infrastructure
Supply Chain Management of Government
District Collectorate
Village Panchayat
FCI Cold storages
Financial and Human resources required at each stage
Grants from the government.
No particular Human resources as such, since it should be more of a Village community activity.

5. Impact of the Solution
Providing food grains and other essential items to vulnerable sections of the society at reasonable (subsidized) prices;
To have a moderating influence on the open market prices of cereals, the distribution of which constitutes a fairly big share of the total marketable surplus;
and
To attempt socialization in the matter of distribution of essential commodities.
Criteria to measure the impact of the Solution
How much benefit is reaching to the people?
How much less pilferage is happening?
Scalability
Can be utilized at macro and micro level
Sustainability
Can be sustained with proper government coordination.
Appropriate Monitoring mechanism
Government regulatory authority
NGOs

6. Challenges and mitigating Factor
Social inequality in the society
Corruption
Dishonest