Comment on PDS can ensure better food security or not
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With the Food Security Bill almost ready to be rolled out, it seems like a good time to fix the problems in the Public Distribution System(PDS). Several state governments have taken innovative measures to solve the problems in the PDS. Let’s have a comprehensive look at the problems in PDS and the various fixes incorporated in it by different states.
The Public Distribution System (PDS) distributes subsidized food and non-food items to India’s poor. Major commodities distributed include staple food grains, such as wheat, rice, sugar, and kerosene, through a network of Fair Price Shops also known as Ration shops established in several states across the country.
In its original form, the system was universal in nature and did not distinguish between different income-groups in the society. However after poor performance of the scheme, the system was revamped and re-launched as Targeted Public Distribution System (TPDS). Under this scheme, the Below Poverty Line (BPL) families would get basic commodities at a subsidized rate whereas the Above Poverty Line (APL) families would get them only at their economic cost.
How the PDS Works:
Central Government purchases foodgrains and transports them to principal Food Corporation of India(FCI) godowns and fixes the quantity and price of foodgrains to be distributed to BPL families. FCI is responsible for warehousing of foodgrains.
State governments identify BPL families and issue ration cards
The Last mile distribution to actual consumers is accomplished through Fair Price Shops.
Leakages and inefficiencies in PDS
“57% of the PDS food grain does not reach the intended people” (UIDAI, 2009)
The major reasons for leakages are:
Inclusion Error: This is caused due to inclusion of people who are not eligible into BPL
Ghost Cards: Bogus ration cards in the name of fictitious owners, is a serious problem causing significant leakages as it does not reach the intended beneficiaries.
Shadow Ownership: This is caused due to migrant families in search of work not able to avail their quota or poor families due to paucity of funds keep the ration cards with FPS owners or others to avail credit or get small portions of cash.
Non-accountability of FPS’: This is one of the major drivers for the diversion of food grains from retail points.The FPS owners divert the food grains intended for ration card holders to open market and report unavailability of stock in the store.
The successful PDS model of Chhattisgarh
With the Centre’s Food Security Bill in focus, there is much talk about the Chhattisgarh PDS model. Let’s have a look at it to find out what sets it apart.
1. Private ownership of The Ration shops was removed and women’s self-help groups, panchayats and cooperative societies were given the responsibility of managing them.
2. The Chhattisgarh government made sure that those running the shops earned a proper income. For this, their commission was increased four times.
3.The warehousing capacity of the state has been increased five times in the past five years.
4. Proper monitoring of goods from warehouses to consumers is done.The ration is sent directly from the warehouse to the shops. Once the goods reach the shop, the cardholders themselves come to take them, and it becomes difficult to do black marketing from here. The system has been computerised to stop any wrongdoing on the way. When the goods leave the godown, the village members are informed through an sms. They check the goods and make a panchnama.
5. Smart ration cards instead of the usual ration cards have been introduced in some big cities and several villages of Mahasamund district. The consumers can use these smart cards to buy their monthly quota from any fps. As soon as the consumer pays his bill, all his information is passed on to the server.
The Public Distribution System (PDS) distributes subsidized food and non-food items to India’s poor. Major commodities distributed include staple food grains, such as wheat, rice, sugar, and kerosene, through a network of Fair Price Shops also known as Ration shops established in several states across the country.
In its original form, the system was universal in nature and did not distinguish between different income-groups in the society. However after poor performance of the scheme, the system was revamped and re-launched as Targeted Public Distribution System (TPDS). Under this scheme, the Below Poverty Line (BPL) families would get basic commodities at a subsidized rate whereas the Above Poverty Line (APL) families would get them only at their economic cost.
How the PDS Works:
Central Government purchases foodgrains and transports them to principal Food Corporation of India(FCI) godowns and fixes the quantity and price of foodgrains to be distributed to BPL families. FCI is responsible for warehousing of foodgrains.
State governments identify BPL families and issue ration cards
The Last mile distribution to actual consumers is accomplished through Fair Price Shops.
Leakages and inefficiencies in PDS
“57% of the PDS food grain does not reach the intended people” (UIDAI, 2009)
The major reasons for leakages are:
Inclusion Error: This is caused due to inclusion of people who are not eligible into BPL
Ghost Cards: Bogus ration cards in the name of fictitious owners, is a serious problem causing significant leakages as it does not reach the intended beneficiaries.
Shadow Ownership: This is caused due to migrant families in search of work not able to avail their quota or poor families due to paucity of funds keep the ration cards with FPS owners or others to avail credit or get small portions of cash.
Non-accountability of FPS’: This is one of the major drivers for the diversion of food grains from retail points.The FPS owners divert the food grains intended for ration card holders to open market and report unavailability of stock in the store.
The successful PDS model of Chhattisgarh
With the Centre’s Food Security Bill in focus, there is much talk about the Chhattisgarh PDS model. Let’s have a look at it to find out what sets it apart.
1. Private ownership of The Ration shops was removed and women’s self-help groups, panchayats and cooperative societies were given the responsibility of managing them.
2. The Chhattisgarh government made sure that those running the shops earned a proper income. For this, their commission was increased four times.
3.The warehousing capacity of the state has been increased five times in the past five years.
4. Proper monitoring of goods from warehouses to consumers is done.The ration is sent directly from the warehouse to the shops. Once the goods reach the shop, the cardholders themselves come to take them, and it becomes difficult to do black marketing from here. The system has been computerised to stop any wrongdoing on the way. When the goods leave the godown, the village members are informed through an sms. They check the goods and make a panchnama.
5. Smart ration cards instead of the usual ration cards have been introduced in some big cities and several villages of Mahasamund district. The consumers can use these smart cards to buy their monthly quota from any fps. As soon as the consumer pays his bill, all his information is passed on to the server.
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