Team Details :

PLUGGING THE LEAKS Improving reach and efficiency of the Public Distribution

System.

College- Dr. Ram Manohar Lohia NLU, Lucknow

Team Coordinator : Garima Parakh

Team members: Suchita Vyas , Sukriti Bhatnagar, Vikrant Yadav , Samiksha Chaturvedi

The Distribution Doldrums

• Rice+Wheat allocation- 47.6

million tonnes

• Offtake- 42.4 million tonnes

• Consumption- 25.3 million

tonnes

• Wastage- 42.4%

Leakages

(2009-10)

• RTI reveals damage of 17,546

tonnes of foodgrains

Grain Drain

(2009-2012)

• Planning Commission estimate

• BPL-61% households excluded

• 25% unintended beneficiaries

Beneficiaries

DIGRESSION OF GRAINS FROM THE COURSE OF PDS OF INDIA

GRAINS

UNINTENDED BENEFICIARIES

LEAKAGE

PROCEDURAL BOTTLENECKS

DAMAGE

AND

WASTAGE

India faces an average grain leakage of 40% per year.

Hypothesis: Problems of “Ghost Cards” jeopardize the already clogged ration allocation system.

More than 30% of the allotted grain goes damaged . Poor storage infrastructure i.e. lack of substantial number of godowns. Bottlenecks refers to the

people who stagnate the current of distribution for their profits.

Hypothesis: Poor storage infrastructure i.e. lack of substantial number of godowns results in increasing wastage as production rises.

A very small section of the poor people (close to 10%) receive the benefits of the subsidized goods.

Hypothesis: The distribution system has lacunas and is not able to handle the allotment judiciously.

Hypothesis: The distribution system has lacunas and is not able to handle the allotment .

We will implement a new system which will change the face of Public Distribution System in India.

• Every state to submit a report of the existing stock in their godowns. The quota of each state to be declared on this basis.

• The off-take to be initiated within 15 days prior to the publication of the allotment quotas for the states in the “The Official Gazette of India “.

Quota Reforms

• Only FCI approved drivers in FCI approved carriers to carry the grains to the respective godowns.

• FCI to grant license to private companies to open godowns for the storage of grain. Each department claiming sanction will have to pay nominal charges for the storage to these private godowns.

• Special arrangements to weigh the consignment to be developed both at the place of boarding and at the godowns.(Public and Private)

• In the event of any misappropriation , the carrier company and the godown owner to be prosecuted.

Distributive reforms

• New ration card to be issued using the “Aadhar card” to curb the ghost card problem and also to provide the benefits of subsidy to the intended citizens.

• To increase the number of “Fair-price-shops” and regulate the old and the new ones by a special team of officers under FCI. Surprise inspections to be conducted to ensure efficient working of the various schemes under the system.

• Direct Credit Transfer scheme to be implemented and e-complaint redressal portal to be setup to deal with problems the consumers might face.

Allocation Reforms

We will introduce a new Cycle of Allotment

Declaration of the amount of the procured stock from the farmers.

States to submit a report of the existing stock of each food grain in their godowns

Declaration of quotas for states on the basis of reports forwarded and the need.

States to express their will regarding the amount of tentative off-take from the dedicated quota.

Off-take with information about the number of carriers used.

Problems Tackled • Improved transparency in the system. • The problem of the stagnation of the system by “procedural bottlenecks” is entirely done away with. • Absolutely Impartial Allotment of grains •Lesser wastage of grains as the will of off-take is declared by the states on a prior basis. •Grains don’t go UNTRACKED !

GPS Enabled

System to

track the

movements

of the carrier.

FCI

Approved

Mark

Sensors to

check

overloading of

trucks . The

sensor sends a

report to the

regulatory

authority

about the

overloading

immediately. State of

art

facilities

for the

safe

storage of

grains.

We will solve the major problems of distribution with the help of available technologies.

Arrangement

s to weigh

the incoming

stock. Img. A FCI approved Truck Source: www.dollsofindia.com

Img. A FCI approved private

godown. Source:

www.constructionweekonline.com

District authority to

conduct monthly

inspections and status

to be updated to the

State authority.

We intend to channelize a good part of the generated revenue from this system towards its development.

Penalty of Rs.10,000 to be paid for non-conformity to norms

CENTRAL REGULATORY AUTHORITY

For Upgrading FCI trucks with GPS and

other tracking accessories

License fee paid by Private godown owners

Revenue from Fair price shops and Ration Shops

For Constructing new Godowns and maintenance of the existing ones

For introducing the computer-based record system

CENTRAL REGULATORY AUTHORITY will be a body formed under the flagship of FCI(Center) which will have discretionary powers regarding the vigilance and financial decisions of the system.

Central

Government

State

Government

Transportation

Database

Off-take Intake Consumption

Beneficiary

Database

OFF-TAKE

• State government shall off-take the

produced grain from central stock as per

allotted quota.

•Transportation shall take place through

authorised FCI vehicles which shall be

GPS tracked.

INTAKE

•District regulatory authority shall keep a

check on the timely receipt of grain.

•The authority shall receive the allotment

at fair price shop, check and record the

quantity received.

CONSUMPTION

•The quantity consumed by the

beneficiaries shall be recorded in the

database.

The credit points can be used

only for the intended purpose of

use in a Fair Price Shop, thus

plugging a loophole of the direct

cash transfer system.

Families can avail the benefits of

accumulated points as these points

do not have an expiry date.

The above will discourage

wastage of material as families will

be encouraged to accumulate

points for use as and when need

be.

Incentives to be given to the district authorities for

adhering to qualitative and quantitative norms

provided in the system.

Most efficiently functioning districts to be awarded

at a felicitation ceremony by the Chief Minister.

Wasted supply to be properly recorded and

submitted to the District Supply Officer (DSO)along

with the reasons that led to the same. The DSO must

check and evaluate the losses and examine the

reasons stated for the same.

Providing incentives and conducting checks in districts may improve their performance and reduce leakages

References:

•http://www.firstpost.com/economy/food-security-bill-is-an-excellent-opportunity-to-fix-pds-1068481.html •http://dfpd.nic.in/?q=node/101 •http://planningcommission.nic.in/plans/planrel/fiveyr/10th/volume2/v2_ch3_4.pdf •http://articles.timesofindia.indiatimes.com/2002-03-25/india/27110039_1_foodgrains-pds-buffer •http://mahafood.gov.in/website/english/PDS.aspx •http://planningcommission.nic.in/reports/peoreport/peo/peo_tpds.pdf •http://indiamicrofinance.com/x/m •http://cacp.dacnet.nic.in/NFSB.pdf •http://www.slideshare.net/nidhisuthar/food-security-and-pds-system-in-india?utm_source=slideshow03&utm_medium=ssemail&utm_campaign=share_slideshow_loggedout •http://articles.economictimes.indiatimes.com/2013-05-04/news/39027072_1_bank-accounts-adult-literacy-rate-india •

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