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Study of Public Distribution System in India
Study of Public Distribution System in India
Study of Public Distribution System in India
Ravi Shankar
Summer Intern,
VGSOM, IIT Kharagpur
Under Guidance of
Despite several efforts, PDS was widely criticized for its failure
to serve population BPL, its urban bias, negligible coverage in
states with highest concentration of poor people, lack of
transport and accountable arrangements for delivery.
Realizing this, government of India introduced Targeted
Public Distribution System in India in the year 1997.
Figures show that more than 80% of total wheat and rice
procurement is done by state agencies (SWC, CSC, STC etc.).
The average buffer stock of food grains with FCI was 10.66
mT in 2006-07 and utilization of storage capacity was only
54% as on March 2007.
The carrying cost of buffer stock per quintal was Rs. 407 /-, the
procurement cost for wheat and rice ranges between Rs. 180
200 /- and the distribution cost is about Rs. 280 /- per quintal of
food grain.
The stock of rice and wheat in the Central Pool was sufficient to meet
the requirement under Targeted Public Distribution System (TPDS) and
Welfare Schemes during 2009-10 at existing level of allocations.
Distribution
Food grains as per allocation to state government are further
distributed to district and block level. From there food grains are
delivered to fair price shops as per their demands.
There are around 5 lakhs FPSs across India. Food grains are either
door delivered to or are procured by, FPS and are finally sold to
targeted end consumers at subsidized prices as per entitlements.
For people under APL, common grade rice is sold at a central issue
price of Rs. 790 /- per quintal whereas grade A rice is sold at Rs.
895 /- per quintal and wheat is sold at Rs. 610 /- per quintal.
For people under BPL category, both common grade and grade A
rice is sold at a central issue price of Rs. 565 /- per quintal and
wheat is sold at Rs. 415 /- per quintal.
In addition to distribution of food grain to population under
BPL and APL, allocation is made to population identified
under various schemes such as:
The off-take of food grains has always been lower than the
corresponding allocation for most of the states in the
country. (Refer figures in fore-coming slides)
Issues that reflect performance of public distribution
system
Most large states have 3-4 tier structure while northeastern states have 2
tier structure.
Food grains are allotted to states are further sub allocated to district for
offtake.
The actual lifting of food grains from FCI godowns is done by wholesale
dealers of food grains who operate at district or sub-district level.
Food grains from FCI godowns are transported to wholesalers godowns and
from there to designated retail outlet.
Transportati
on by SCSC Transportation
own/hired to /by FPS
vehicles using hired
vehicles
It may be seen that in all north eastern states and Bihar &
U.P. , most of FPSs are owned by private individuals.
Margin for FPSs with door delivery varies from 8-45 paise
per kg of rice and 7-30 paise per kg of wheat.
It has been found that subsidizing these costs will turn FPSs
financially viable.
Total leakage - > 36%, leakage through ghost cards 17% &
leakage at FPS 19%.
Bihar and Punjab rank topmost with more than 75% PDS food
grains leaking out.
A.P., Kerala, Tamil Nadu, Orissa and W.B. are state with least
quantity of food grains leaking out.
It may be said that for making one kg of food grain
available to poor government release 2.4 kg of food grains.
Andhra Pradesh Tamil Nadu are two states who have taken
initiatives to make PDS e-governed.
Multiplicity of schemes.
Expensive operation.
Leakages.
Non availability of food grains at FPSs.
Lack of information.
Implementation of Nine point Action Plan Review of BPL, AAY,
leakage free distribution, involvement of PRIs, door delivery to FPS,
Transparency etc.
Choice of FPS.
Off-take Allotment
analysis System
System
Central MIS
System
Central
HHD in Database
Field
PoS
Grievance
Redressal
Benefits to PDS from UID
Procureme
nt
FCI/CWC
SW Distribution to States
C
STC , Distributi
on
FPS
Public Distribution
System
PDS A network of retail outlets through which government sells
grains and kerosene at subsidized prices mainly to socio
economically backward population.
Food grains are distributed to fair price shops for final sale to the
consumers at subsidized prices.