Designing Distribution Channels for Governmental

Schemes(Food Security)

Submitted By
Anish Kumar 110
Ashish Gayakwar 114
Jayant Yadav 125

Navalpreet Singh 132

Nitesh Kumar Rohilla 134
Vivek Ohri 162
Diskit Yangdol 168
Shrey Kapoor -349

Agenda
What is Food Security
Current Efforts by various Stake Holders: Govt., NGOs, hawkers etc.
Food Security Indices by World Health Organization
Our Approach
Food Security Supply chain design
Conclusion

Literature Review
Functioning of the Public Distribution System Sakshi Balani

Food Security and the Targeted Public Distribution System in India Dr Ruth Kattumuri
Annual Planning Report 2013-14 Department of Agriculture & Cooperation
A Study on the Effectiveness of PDS Dr. S Nakkiran

Food Security in India: Policy, Challenges and Response Dr. Debashis Chakrabarty
Leakages from Public Distribution System and the way forward Ashok Gulati & Shweta Saini

What is Food Security

The World Food Summit of 1996 defined food security as existing when all people
at all times have access to sufficient, safe, nutritious food to maintain a healthy and
active life.
Thus food security implies both physical and economic access to food that meets
their dietary needs, nutritional requirements and food preferences.
Nutritious food providers have three functions: Making it Available at Affordable
prices and creating Awareness to the consumers

Government Programs for Food Security

Major Programs to Augment Availability of Food
National Agricultural Development Program
Accelerated Irrigation Benefit Program
Fertilizer Subsidy
Bank loans, Free Electricity

Major Programs to Improve Economic Access to Food

Public Distribution System
Mahatma Gandhi National Rural Employment Guarantee Scheme
National Food Security Bill

Major Programs & Partnerships to Improve Nutrition Security

Mid Day Meal Scheme
Integrated Child Development Scheme (ICDS)
Annapurna Scheme (Ministry of Rural Development) for senior citizens
The Nutritional Program for Adolescent Girls
Emergency feeding program ( in eight districts in Orissa)

Performance of Food Security Schemes

>The food security programs as envisioned are too narrow & equate food security
with grain security
>These have become classic examples of corruption, diversion, adulteration .
>Food Adulteration(Milk, Fruits, Fish) with chemicals such as calcium carbide getting
deadlier by the day
>The cost of implementation of the PDS program is high (6 rupees for each rupee of
rations delivered and 4 rupees for each litre of kerosene)
>Suggestions for improvement include
Replacing ration cards with food coupons or UID.
Using IT for monitoring and visibility.
>Neither of them can stop corruption or improve the performance

Food Security Indices by World Organizations

Global Hunger Index(GHI)

In 2011, India Ranks at 67 out of 81 countries. The GHI is composed of three equally
weighted indicators Proportion of the population that is undernourished, proportion of
children who are underweight and under five mortality.

Human Development Index(HDI)

India ranks 134 among the 187 countries. HDI is a comparative measure of life expentancy,
literacy, education and standard of living.

Malnutrition: Integrated Child Development Services

47% children below the age of three years are malnourished

Our Diagnosis

Food security need to be properly defined and the delivery processes need to be well
designed and their executions monitored.
Need articulated Changes in Consumption Patterns
In both urban and rural areas % cereals in food is declining & high value products such as
fruits, vegetables, meat, dairy products, and fish is on the rise
Not treated as a supply chain problem. Recent advances in technologies and in the food
vertical: Logistics,
Raise of Supermarkets, Food Processing & Packaging, Wireless, Traceability using RFID are
ignored.
Coordination and Execution are absent

The Business Processes

Creating awareness on Food, nutrition and health relations

Preparation of the menu by crowd sourcing
Procure the food material from suppliers (Government or private parties), the processed
food manufactures and meat and milk vendors and store in the distribution center.
Certification of quality at each stage in the chain
Transfer the materials from the distribution center to the kitchens on a daily basis or as
required or as ordered.
The delivery of the food packets from the kitchens to the hawkers, schools and other outlets
using delivery vans.
Return of unsold food for disposal
Financial supply chain

Execution using Smart Technologies

Streamlined execution of food security chain for urban poor is through
Smart business network that uses GPS, RFID, UID, Sensor networks, mobile,
call centers etc.

Brainstorming and discussions with stakeholders would certainly lead to an

Executable Food security system to replace the currently corruption ridden
inefficient system

Food Security Solution: To serve 100 Mn poor

The Food Security EcoSystem

Supply Chain Network Coordination

The network consists of half million stake holders in big cities. Majority of them are hawkers
who are small entrepreneurs.
The asset intensive part of the network are the Kitchens and the Distribution Centers.
The Distribution centers can be a shared service with the big retailers but the Kitchens have
asset specificity.
The Governance model can be an orchestrator type i.e. the governance is managed by a
third party such as an NGO or One of the lead players such as the Kitchen owners can
manage the supply chain.

The Supply Chain Risks

Political/social pressures for permissions
Creating nutrition awareness among consumers
Compromise on quality and hygiene
Misunderstanding by the hawkers
Resistance by other organized restaurant and Kirana shop owners
IT/ technology adoption barriers
Waste disposal & Recycling

Thank You!