Identifying & Addressing Implementation Issues for...
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Identifying & Addressing Implementation Issues
for Effective Aadhaar-Authentication in Public
Distribution System
A Study for the Unique Identification Authority of India, Planning Commission, Government of India
Institute of Public Enterprise (IPE)
May 4, 2012
Backdrop
• The Chief Ministers Conference held in 1993 by the Government of India
became a landmark for ushering in governance reforms in India.
• The focus was on making public services efficient by improving access to
various sections of the society and by widening choices and brining in
transparency and accountability in service delivery.
• Some of the key elements of good governance which were built into the Indian
approach to transform institutions and service delivery are as follows:
– Structural and functional role clarity, redefining the role of government
– Focus on result orientation rather than output or input orientation.
– Enhancing autonomy to public sector organizations and their functionaries.
– Capacity enhancement and leadership development
– Change management
– Putting the citizen at the center of governance.
– Improving accountability through measures like performance auditing and social auditing.
– Improving transparency using the tools of e-government.
– Strengthening local governments- decentralization through devolution of functions, funds and
functionaries
– Enhance the use of information technology to empower citizens
PDS in India
• The public distribution system in India operates through a multi-level process in
which the centre and states share responsibilities.
• The central government is responsible for procuring or buying food grains, such
as wheat and rice, from farmers at a minimum support price. It then allocates the
grains to each state and transports the grains to the central depots in each state.
• After that, each state government identified the poor households and is
responsible for delivering the allocated food grains from these depots to each
ration shop.
• The ration shop is the end point at which beneficiaries buy their food grains.
Agencies involved in the PDS process are Civil Suppliescorporation/Department,
Revenue Department, and Panchayat Raj & Rural Development Department to
name a few. Studies indicate serious gaps in implementation of PDS, including
identification of real beneficiaries, leakage of food grains during transportation,
pilferage of supplies from the ration shop into the open market, coordination
issues among various agencies, monitoring and vigilance etc.
Reforms in PDS
• As a part of its commitment to improve governance and provide transparent,
accountable and corruption free governance, the Government of India in
November 2008 launched a Unique Identification project (UID) with an
intention to develop a comprehensive and robust system of identification of each
and every person living in the country with the help of a unique identification
number.
• This number is designed to be a 12 digit number which will capture
demographic details of the person along with his/her biometrics (10 fingerprints,
iris scan and photo).
• The Government was of the view that this unique number will help the
government to implement its development agenda in a much more effective
manner, especially it will help in the implementation of the pro-poor schemes
through better targeting of individuals in various schemes like NREGS, PDS,
Pension Scheme to name a few.
• The pilot initiative taken by Government of Andhra Pradesh has been narrated
which is in the context of the public distribution system which caters to the
socio-economically backward weaker sections of the society.
The Pilot Study
The paper highlights the pro poor governance reform agenda of the Government of
India for making the public services to work, and putting citizens at the centre of
public service delivery and making them more accountable and transparent to the
citizen.
Objectives of the Study:
To identify the field level implementation and governance aspects that
need to be considered for effective Aadhaar implementation in the Public
Distribution System
Scope
The study focuses on the various aspects of Aadhaar implementation in
the Public Distribution System in Andhra Pradesh.
Preparatory Activities- (Review of Literature, Finalization
of methodology, and identification of districts)
PHASE – II Feedback
PHASE – III
Feedback
PHASE – I Development of questionnaires, training of field
staff, planning field visits)
Situational Analysis Report
Report on Recommendations and
Suggestions
Final Report
Case Study – Brazil Zero Hunger Programme
Field work and data collection
Project Phases
Districts covered
District Mandal Villages
Chitoor Renegunta Kothapallem
Marigunta
Gandhi Nagar
Guruvurajapalem
Lakmipuram
Chukavaripalle
District Mandal Villages
Ranga
Reddy
Maheshwaram Tukkuguda
Mahankal
Harshaguda
Raviryal
These were the Phase I districts identified by government for Aadhaar implementation.
Stakeholders
A sample of approx 574 persons were contacted
for gathering information including demand side
as well as supply side persons.
S
No
Stakeholder category No.
Demand Side
1 Beneficiaries 474
2 Farmers 30
3 SHG women 25
Supply Side
1 Food Corporation of India 9
2 Food and Civil Supplies Dept 15
3 State Warehousing Corporation
4 Transporters 1
5 Fair price shop dealers 10
6 Gram Panchayat 5
7 Mandal level officials 5
Farmers or producers registered at local
purchase centers/mandis
Transporters involved in the movement of foodgrains
Local officials from Food
Corporation of India
Officials of Mandal Level Stock Points
(distribution centers)
Officials of state PDS including
those involved in vigilance
Fair Price Shopkeepers
BPL, APL ration cardholders
Self Help Groups
PDS: Key Process
• Production
– Sale
– Milling
• Storage
– FCI
– MLS
– Other godowns
• Transportation
– To godowns
– To FPS
• Distribution
– Dealers
– Beneficiaries
Institutions Involved Food & Civil
Supplies
Department
Revenue
Department
Civil
Supplies
Corporation
Lifting,
Movement,
Stocking &
Delivery
Vigilance &
Enforcement
Monitoring,
Inspection &
Revenue
Collection
Food Corporation of
India,
Warehousing
Corporation, other
Private Agencies
Procurement
& Storage
Panchayati
Raj
Department
Monitoring &
Oversight
AP State Civil Supplies Corporation Limited- lifting, movement, stocking and delivery of essential
commodities at the door step of the Fair Price Shops.
It lifts rice and wheat from the Food Corporation of India godowns; sugar from Sugar factories and
Palm oil from MMTC, moves to Mandal Level Stockist Points (MLS Points), stores there and
transports to the Fair Price Shop (F.P Shop) dealers for delivery at the Fair Price Shop door step.
Redgram dal is purchased by the Andhra Pradesh State Civil Supplies Corporation through tenders
and delivered at the M.L.S. Points. This is also moved to the F.P. Shops for delivery at the door step
of F.P. Shop along with other commodities.
While Kerosene is lifted by the wholesalers from the oil depots, stored and transported to the F.P.
Shops / retail points as per the allotment for door step delivery of F.P. Shop dealer.
Production
Stages in Production
1.Stage I - Production (procurement of seed, fertilizer, financial assistance -loans etc)
2.Stage II- Sale and purchase of commodity- market yard activities including pricing
3.Stage III- Mill Levy - procurement by FCI
Gaps Identified
S
No
Key
Stages/Processes
Key Authentication Gaps Identified
1 Lack of availability
of financial
assistance
to the marginal
farmer
• The marginal farmers who produce on leased lands are not the real owners and don’t
have the Pattadar Passbooks which are the traditional source of
identification/authentication for getting financial assistance from the banks. They fall
into the debt trap of local money lenders.
• There are local agents who work as facilitators and buy the produce from farmers,
provide financial assistance during the course of farming like purchase of fertilizer,
pesticides, labour expenses and tractor expenses etc. In return the farmers sell their
produce to these agents. The local agents also tie up with the local millers for
processing paddy as rice. They stand in an advantageous position than the farmer.
2 Seed creation-
procurement and
Fertilizer
Procurement
• The marginal and small farmers prefer buying bags from the private
individuals/farmers even though there are government outlets also for selling seeds
in small quantum of 10kgs. On the other hand the big farmers/Land holders prefer to
dry paddy on their own and convert them as seeds for the next crop. The marginal
and small farmers don’t approach the Government outlets also for buying fertilizers
which is a key input during the production cycle and in regular intervals. This
remains a prime challenge since the fertilizer subsidy is not reaching the marginal
farmers which are in dire necessity for this kind of a support.
• The problems faced by small and marginal farmers in terms of not being able to get
fertilizers, seeds and other subsidies from the government is due to lack of
authentication or individual identification. Marginal farmers who produce on leased
lands are not the real owners and don’t have the Pattadar Passbooks which are the
traditional source of identification/authentication for getting subsidies from the
Government like seeds, fertilizers, other subsidies. Many of the small farmers don’t
hold any of these documents and are therefore put to major hassles by the system.
Gaps Identified
S
No
Key
Stages/Processes
Key Authentication Gaps Identified
3 Market Yard
activities
Farmers sell their produce to the local agents instead of coming to the Market Yards -
which have been created by the Govts to facilitate sale due to logistics costs, lack of time
and resources for the farmer, locational disadvantages (distance of yard), lack of needed
infrastructural (support) facilities at the yards
The Agriculture Market Committees. AMCs are expected to make available quality seeds,
pesticides and fertilizers to the farmers in the market yards but they are not able to deliver
effectively.
Availability of information gathering of the activities at the yards. The nature of
information to be collected by the AMC includes information about the Miller, the quantity
of purchase, and the rate of purchase etc. Lack of computerisation of information and use
of manual methods for recording information of sale and purchase of the produce is the
key gap. For example, the Marketing Committees and the Marketing Department records
the sale and purchase information in various registers (A & B Registers). Due to use of
manual methods there are chances of manipulation of data and it is extremely difficult for
the higher authorities to monitor the process.
4 Monitoring Lack of proper monitoring and vigil on the part of the Government on the purchase and
sale of commodity by the Millers at the market yards. Lack of computerization of
information is a major gap which leads to poor monitoring by the state and district level
authorities ending up in in-effective decision making.
5 Transparency and
Information
Lack of Information to the farmers about the prices of a commodity prevailing at different
centers during the sale period diminishes his bargaining power. Therefore, they have to
depend upon the price offered by the traders in the mandi system or by the local agents.
The marketing system is more favorable to the buyers compared than to the sellers. Lack
of quick and authentic information on the prices of commodities at different centres, the
farmers loses their bargaining power.
Gaps Identified S
No
Key
Stages/Proces
ses
Key Authentication Gaps Identified
1 Process of
collection of
Mill Levy
Authentication gaps have been seen in the process of quality check certification, release orders
for movement of grain, organizing transportation etc is done by various agencies like FCI, State
Government, District Supply Office, Civil Supplies Corporation. Manual methods are used for all
the above activities like release order issue, quality check certification etc.
oManual methods are used for this process which provides chances of manipulating
information.
oCoordination is also a major issue between the multiple agencies performing these tasks.
oThere is a need for individual identification and authentication of the Miller, quality and quantity
of processed commodity delivered at FCI, time and other details.
oCoupled with individual identification of the Miller, there is a need for computerization and use
of information technology for enhanced monitoring by the responsible authorities and improved
coordination between the multiple agencies which carry out these activities.
2 Mill Levy
Movement
During discussion with the millers it was told that though operate on large scale are equally
making losses in the chain since they also have to pay truck rentals and demurrage changes for
getting the stock unloaded at FCI. A loaded truck with bags of rice has to wait for 2-7days
depending on the storage space available at the FCI. The demurrage changes along with truck
rentals mount and reduce the margins of the agents. Process authentication is a major
requirement at this stage of PDS activity. Lack of standard procedure and timelines set for
movement of processed grain from the miller to the FCI godown.
Case I
Discussion with (Mr XXX) a milling major located in the village of East Godavari district who is operating with 6000bags of
paddy processing a day explained that the losses he makes towards the demurrage charges is very huge. .
Case II
In another case, the plight of a (Mr XXX) in the Yanam town of Pondicherry state that is operating with 3000 bags of paddy
processing unit is no different from the above mentioned milling major of the neighboring state of Andhra Pradesh who makes
losses towards demurrage charges..
Procurement and Storage
Stage I – Procurement & Storage by FCI
Stage III- Movement of Stock from FCI and Storage at MLS
Gaps Identified
S
No
Key Stages Key Authentication Gaps Identified
1 Purchase of
commodities by
FCI
Quality standards are set for purchases of commodities like rice, dal etc from Millers.
There are a number of issues that create problems with following quality standards of
purchase. The state government in some cases purchases rice from women groups and
other identified sources, distress sale etc. There are chances for dilution of following
quality standards during the purchase. More importantly at the village level, there are
pressure groups which instigate the farmers to dump their produce for purchase by the
Government, and the Government is forced to buy the crop, which leads to dilution of
quality standards. A major process authentication gap is visible here at the point of entry
of grain into the PDS.
2 Verification at FCI There are different points of verification both of quality and quantity as soon as the mill
levy arrives at the FCI. There are manual registers in which information of the stock
arrived is entered. Manual entry is done to record the details of the quality and quantity
checks conducted at various points at FCI. There is no computerization of information.
3 Storage capacity at
FCI.
During discussion with the Millers, it was found out that the trucks loaded with grains
have to be parked near FCI godowns for days together as there is space constraint. There
are Demurrage losses incurred by the Miller. During informal discussions officials also
told that the Miller being a business man will try and get his losses back through other
means. Therefore this part of the process needs to be more transparent and a system has
be in place which can clearly show the authorities as to when the truck from the Millers
godown started for FCI and when exactly did the truck unload at FCI.
4 Release of the
Commodities to the
various MLS points
The complete process of issue of release order from FCI for lifting of the commodities by
the Stage I transporter is done manually. Computerization of this part of the process is
lacking which hampers the process authentication at this point of the activity.
Gaps Identified
S
No
Key Stages Key Authentication Gaps Identified
5 Movement of grain from
FCI to MLS: Role of
Stage I Transporter
The State Government gives the complete responsibility of the movement of grains
from the FCI to the Mandal Level Stock points– limitation observed at the point of
movement of commodities based on the request of the State Government is that
the Stage I Transporter takes the complete responsibility of the movement of rice,
sugar from the godown of FCI and sugar factories to the MLS points. Though there
are no effective mechanisms in place at this point to that the load of truck reaches
the desired destination.
6 Weighment problems at
MLS
Though there are balance scales etc, at the MLS due to paucity of time and non-
availability of persons to work, the bags and loaded into the transport and sent to
the FP Shops. If the FP shop owner persists on weighing the quantity his stock
arrival is delayed unduly. Process authentication will be a critical aspect in this
activity. There is a clear need for use of information technology and automated
weighing tools for carrying out the activities.
7 Monitoring of movement The Route Officer is supposed to monitor the process of movement of
commodities from MLS to FP shops. It was observed that in most of the cases the
transporter picks up the stock and hands it over to the FP shops. The role of the
route officer is not seen to be very effective. Individual authentication and
identification of the Officer in-charge for monitoring the movement is very critical
here.
8 Lack of storage capacity
at the MLS point
There is inadequate storage capacity at the MLS from where the stock is lifted and
sent to FPS. Though the local authorities feel that this is not a big issue because
the stock doesn’t remain at this point for more than a few days.Yet there is a need
to streamline this part of the process because in a short gap of a few days a lot of
unethical activities happen at this point of PDS chain.
Distribution
• The key processes and authentication aspects in
distribution are highlighted below:
• Stage I- Release of ration to FP Shops
• Stage II- Process of issue of ration to the beneficiaries
Gaps Identified
S
No
Key Stages Key Authentication Gaps Identified
1 Issue of
ration Cards
The common man applies for a Ration Card through multiple channels: mainly it comes through Chief
Minister’s village visits (Racha banda), recommendation from a local political leader, request to mandal
office and so on. These multiple requests have to be processed by the Revenue department through
an enquiry process which is labourious and painstaking as described the officials.
This process is ineffective due to inadequate manpower and it requires physical inspection at the
residence of the applicant, lack of common database of families living in the village/mandal is another
major drawback, lack of mobility for the revenue officials for movement into villages, apathy, pressure
from the local MLAs are other factors that render the process ineffective.
2 Identification
of
beneficiaries
at FPS
The traditional system of authentication or identification of the beneficiary at the FP shop is with the
help of a Ration Card. The Ration card has a photo identity facility with all the details of the family
members including their photographs. Identification of the beneficiary is not very difficult as the FP
Shop dealer personally knows all the people who are registered with him for monthly drawal of
commodities.
People accepted that there were real time problems with the traditional system of authentication, i.e.
with the ration card as a source of identity. An interesting feature was observed that many of the
beneficiaries usually keep their ration cards at the FP shops itself. This is done by them at the behest
of the dealer and it leads to mis-management of stocks and wrong entries etc. People said that when
they keep their cards at the shop anyone could just take away their cards, entries could be made in
their cards without their knowledge, and there was tremendous scope for pilferage.
3 Issue of
Ration at the
Fair Price
Shop
Gaps have been identified during the process of issue of ration to the beneficiaries at the FP shops is
completely manual. It was observed during the field work that due to the manual methods there is
an opportunity for the FP shop dealer to indicate that all the card holders have taken the complete
quota of their entitled commodities as per schedule and there is not method to check if it has been
really happened. There is no use of technology during this process of issue of ration.
Gaps Identified
S
No
Key Stages Key Authentication Gaps Identified
4 Method of
Entry of
Monthly
Transaction
Details in
Beneficiary
Ration Cards.
The FP shop dealer gives the commodities as per the entitlement to the family and records the details of the
commodities gives in the Ration Card of the person in a manner that is totally unaccountable. When the team saw
how the FP shop dealer was using the ration card it was observed that there was total lack of clarity in entry of
details which the FP Shop dealer does in the beneficiary Ration card. The FP shop dealer simply scribbles
illegibly in the Ration card and does not write the details of monthly ration given to the beneficiary. The entry
that is done by the FP shop dealer in the ration book is most illegible and vague. No one can understand what has
been recorded in the ration book month-wise. This is a major gap that appears in the process at the FP shop.
5 Monitoring and
Vigilance
function
There is a need for individual authentication of the process of vigilance, because despite the government
designing elaborate vigilance mechanisms there is totally ineffective vigilance on ground. The local officials say
that due to lack of adequate manpower and mobility it is not possible to keep the vigil and check that is expected
to be done during the process of issue of commodities at the FP shops.
6 Lack of
effective
information
sharing with
the public
The Department of Civil Supplies, Government of Andhra Pradesh has brought out a Citizens Charter directing
the FP Shops to display information regarding the names and details of beneficiaries for transparency. But it has
been observed during the field visit that not even one single shop displays the above required information
regarding beneficiaries. This provides a lot of chance for the FP Shop dealer to manipulate distribution of
commodities to the assigned beneficiaries
7 Grievance
redressal
mechanism
The Grievance Redressal system in the public distribution system is totally not operational. People are not aware
of whom to approach in case they don’t get the quality and quantity of commodities entitled under the PDS.
When the beneficiaries were asked whom do approach to register your grievances and problems with regard to
the PDS.
Distribution: FPS
S
No
Key Stages Key Authentication Gaps Identified
8 Transparency
at the FP
Shops:
GoAP directs the FP Shops to display information regarding the amount of stock received,
date of disbursal of stock, etc. As a part of the field survey the FP shop dealers were asked if
they provide required information to the public in terms of arrival, disbursal and timings.
There was a mixed response to this question- some of the dealers were providing information
on the arrival and disbursal of the stock while others were not. What the team observed at the
field was that not even one of the 10 shops visited had any display of such information.
9 Weighment
Problems
(MLS Point to
FP Shops):
It has been observed that the MLS point from where the stock is lifted and sent to the FP
Shops does not have adequate facility for weighment of commodities. Though there are
balance scales etc, due to paucity of time and non-availability of persons to work, the bags
and loaded into the transport and sent to the FP Shops. If the FP shop owner persists on
weighing the quantity his stock arrival is delayed unduly.
10 Data
Management
at the FP
Shops:
During the survey all the 10 FP shop dealers who were contacted showed their method of
data management. All the information regarding the stock arrival, disbursal, etc is all done
through Manual registers.
11 Grievance
Redressal
Mechanism
The Grievance Redressal system in the public distribution system is totally not operational.
People are not aware of whom to approach in case they don’t get the quality and quantity of
commodities entitled under the PDS. When the beneficiaries were asked whom do approach
to register your grievances and problems with regard to the PDS.
12 Interference
from Local
Administration
When asked if they face any interference from the local administration including Gram
Panchayat members/Sarpanch, Tahasildar or officials from the Civil Supplies Department only
2 out of the 10 persons met said that there was interference from the Tahasildar/VRO and only
1 of them said that the field level staff of the Civil Supplies department interfered in their
functioning.
Transportation
Stage I:
Civil Supplies Corporation
Hires Transporters
Rice moves from Food
Corporation of India to Mandal
Level Stock Points
The activity starts early in the month of January. The Vice Chairman & Managing Director, Civil
Supplies Corporation invites tenders for Stage 1 contractors from all 23 districts.
Tenders are called for by Civil Supplies Corporation. Based on the competence of the
contractors (technical and financial), the list is finalized for all the districts and the Civil
Supplies Corporation issues an Order with the selected contractors.
Gaps Identified
S
No
Key Stages Key Authentication Gaps Identified
1 Transparency and
effectiveness of the
Tendering process
The tendering process followed by the government for identification of the Stage I contractor is through
advertisements in local newspapers wherein tenders are called for from various districts. Absence of e-
tendering is a major gap in the tendering process which will provide greater transparency and
accountability to the complete process as a whole.
2 Manual process of
brining out release orders
for movement of
commodities from FCI to
MLS
The current system requires the Stage I transporter to get a release order copy from the Food
Corporation of India indicating the amount of stock to be carried from the FCI to the MLS Point. All
this process is carried out in a manual fashion. There is no use of technology for brining in greater
transparency during this process.
3 Monitoring of the
process of movement of
grain from FCI to MLS
Procedurally though during the movement of the commodities from FCI a Route Office has to
accompany the lorry, most of the times the driver or the contractor picks up the stock and starts the
movement. There is no route officer involved in this part of the movement which makes all the more
important for authentication of individual/driver/company agents and others who are responsible for the
movement of the commodity.
Apart from individual authentication, there is also need for authentication of the complete process cycle
right from the point of loading the commodities on to the Stage I transportation till it reaches the MLS
point. No online sharing of information by the agencies involved namely the FCI, Civil Supplies
Corporation, Civil Supplies Department and so on who are involved in the PDS regarding the number
of bags, quantity, quality of the stock being sent, name of the person etc. This system is very critical as
it will fix greater accountability on the officials responsible for the movement of the commodities from
FCI to MLS. This will also enhance accountability on the contractor to ensure that there are no losses
incurred during the transit and all the uploaded quantity of grains reach the destination.
4 Monitoring of the
process of movement of
grain from MLS to Fair
Price Shops
There are gaps in the Stage II transportation process, when the commodities are moved from the MLS
points to the Fair Price shops. During discussion with the FP shop agents it was gathered that there are
losses during the transportation and therefore the FP shop dealer doesn’t get the complete quantity of
commodities indented. Although he is expected to supply commodities as per the number of card
holders for the month. This creates a lot of imbalance in the transactions.
Transportation
During an informal discussion with the FCI officials it was revealed that there is no
guarantee that all that has been loaded on to the truck will reach the destination in
the desired manner. The Andhra Pradesh Government has initiated the system of
putting the RFID tags to the bags while loading them on to the trucks. Even this
was being criticized by the officials who said that RFID can only show us that the
truck is moving in that direction, but can do nothing to ensure that the bags are not
replaced or the bags can also reach empty to the final destination despite the RFID
tag. Tamilnadu government has also experimented with RFID tags and the success
levels of the experiment have to be studied for replication.
Transportation
• Stage I
• There are gaps in the process of transportation of grain from the FCI to the MLS points at the Mandal level. Though the tradition system requires the Stage I transporter to have a release order copy from the FCI indicating the amount of stock to be carried from the FCI to the MLS Point. The driver or the contractor pick the stock and start the movement. There is no route officer involved in this part of the movement which makes all the more important for authentication of individual as well as the complete process which means that there should be a computerization and online transmission of complete information regarding the number of bags, quantity, quality of the stock being sent, name of the person etc.
• This system is very critical as it will put some kind of accountability on the contractor to ensure that there are no losses incurred during the transit and all the uploaded quantity of grains reach the destination.
During informal discussions with officials responsible for transportation it was gathered that the Civil Supplies
Corporation keeps security to the tune of 25 to 30 lakhs from the transporters and therefore any losses during the
transit can be recovered from the deposit amount.
There was another view coming in that the contractor puts in a huge sum of money for winning the tender for
Transportation contract from the department. So naturally he has to make profits out of the activity that he is doing- i.e.;
moving the grains form the FCI godowns to the MLS points. It is an accepted fact that there are cartels formed between
the Miller and the Transporter and they help each other make financial gains during the complete process.
Transportation
• Stage II
• There are gaps in the process of transportation of grain from MLS points to the
FP shops. There is some amount of loss during the transportation and therefore
the FP shop dealer doesn’t get the complete quantity of commodities indented
and at the same time he is expected to supply commodities as per the indent.
This creates a lot of imbalance in the transactions.
All the 10 FP Shop Dealers who were contacted during the study said that they didn’t get the
complete quantity of commodities indented and at the same time he is expected to supply
commodities as per the indent. This creates a lot of imbalance in the transactions.
Tender process
The tender process followed by the government for identification of the contractor
for transportation purpose is purely through manual methods. Advertisements are
given and tenders are called for from various districts. Absence of e-tendering
process is a major gap in the transportation sector, this gives greater transparency
and accountability to the system as a whole.
Community Participation
Lack of Community Participation: People’s participation is negligible in monitoring
the functioning of the FP Shops is totally absent.
The Department of Civil Supplies has constituted Vigilance / Food Advisory
Committees for reviewing the PDS. These committees are constituted at Village,
Mandal, Division, District, Municipal Corporation / Municipality and at State level.
This Committee comprises of SHG representative, Local political representatives,
Representatives from card holders, Dealers representatives, Representative of the
Food and Civil Supplies, Representative from consumer organizations and the Joint
Collector- Convenor of the group. This initiative has not yet started.
The team visited Tukkuguda village to interact with the FP Shop dealers as well as public. To our
greatest surprise at around 9.00 am an able bodied man in a Maruti 800 white colored car came
down to the FP shop and collected his provisions from the FP shop. The key issue here is they
eligible beneficiaries at all? How did they get the White card? Are we depriving the real
beneficiaries from their entitlements?
Streamlining PDS: Approaches Adopted
• AP:
– Aadhaar based smart cards
– FP Shop Automation
– Others
• Chhattisgharh
– Automation of Procurement
– De-privatisation of FP shops
– Transportation reforms
– Others
Beneficiary Profile
Income of the Respondents
8%
51%
26%
6%5% 4%0%
No income
below 18,000
18,000 to 25,000
25,000 to 40,000
40,000 to 60,000
Above 60,000 per
anum
Demography of Respondents
3% 9%
14%
16%
12%12%
8%
26%Below 25 yrs
25 yrs -30 yrs
31 yrs- 35 yrs
36 yrs – 40 yrs
41 yrs -45 yrs
46 yrs – 50 yrs
51 yrs – 55 yrs
56 yrs and above
Compotion of Gender
61%
39% Male
FemaleComposition of Education of the Respondents
8%
14%
22%56%
Graduation
High School
School drop out
illiterate
Composition of Caste of the Respondents
4%
19%
68%
8% 1%0%0%
ST SC BC OC OBC PH VH
Type of Card
88%
5% 7%0% White Card
Pink Card
Antyodaya
Others
Feedback on Aadhaar Source of getting Aadhar Form
1%0%
67%0%
23%
9%FP Shop
Internet
Registration Center
Xerox Shop
School
Gram Panchyat
Payment for Registration3%
97%
Yes
NoMode of Preserving
1% 10%
89%
Lamination
Cover
Nothing No. of Days to get Aadhar Card
92%
6% 2%
< 1 month
< 2 months
<= 3 months
Will post Aahaar be better than pre Aadhaar
15%
63%
22%
Yes
No
Can't Say
Hunger Zero Project of Brazil: A Case Study
• Backdrop
– In Brazil, the survey that comes closer in the measurement of food insecurity is the Family Budget Survey - POF, carried out by the Brazilian Institute of Geography and Statistics - IBGE.
– In the last survey published, with data compiled in 2003, 46.6% of the Brazilian families stated that they had difficulties obtaining enough food.
– In a 13.8% of these cases the difficulty was frequent. In the North region, the proportions were, respectively, 63.9% and 17.2%; and, in the Southeast Region, the proportions were 60.8% and 19.3%.
– In the Zero Hunger Project, it was estimated that, in 1999, 44 million people (9.3 million families), or 27.8% of the population, were vulnerable to hunger.
Hunger Zero Project of Brazil: A Case Study
• The first axis of the Food Security Policy: – Integration of structural policies for employment and income generation.
– The programme recognizes need for employment generation, improvement of wages and improve purchasing power of the poor segments. This constitutes the
• The second axis of the Food Security Policy – Integration of specific policies on access to a quality diet.
– State to intervene to include in the food consumption market those whose income is insufficient to ensure an adequate food intake for their families.
– Encourage the growth of supply of cheap food, even through own consumption and/or subsistence production; and, finally, to include the excluded, given that access to a basic diet is an absolute right of any human being, not to say that it is a citizen right that should be ensured to all Brazilians.
• The third axis of the Food Security Policy: – Integrate the educational aspect of the programme, since it is not enough to have
access to food in sufficient quantity, it is necessary to be aware of what one is eating, the quality and source of the food consumed.
– Several studies reveal that the nutritional problem of the Brazilian population results not only from insufficient acquisition of food, but also from inadequate choice of food. Therefore, the problem is both quantitative and qualitative. And this problem is not restricted only to the low-income population, but also to the whole population.
The Programme Zero Hunger is a strategy of the federal Brazilian government to
ensure the right of all human beings to adequate nutrition, reaching those with
difficulties to access nutrition. This strategy consists of promoting nutritional
security and it contributes towards the eradication of extreme poverty and towards
the enrichment of the most vulnerable part of population.
Objective
To eradicate hunger in Brazil promoting social inclusion of population with difficult
access to food.
Target Population
Brazilian population with difficult access to food.
Hunger Zero Project of Brazil: A Case Study
Zero Hunger Programme: Brazilian Case
• There are four aspects involved in this concept: – The first and most visible one is quantity: a minimum consumption of
calories, proteins and vitamins is required to ensure an active and
healthy life.
– The second, no less visible, is quality: people must have access to
nutritious food.
– The third aspect is regularity: eating at least three times a day. This
means having breakfast, lunch and dinner every day.
– And the fourth aspect is dignity: a person who feeds from garbage or
what restaurants throw does not have food security, in spite of not
being undernourished by biological standards.
1. Increasing the access to food
2. Income transfer Programmes– Programme Bolsa Familia- Sub
Programme
2. Strengthening Family Agriculture
3. Promoting income generating processes
4. Mobilisation
Zero Hunger: Components
Bolsa Família Programme
Money Transfer programme conditioned by:
• Immediate poverty decrease through money transfer and
• poverty eradication and promotion of social inclusion through basic social rights (such as health and education) and the access to complementary policies.
• Complementary programmes: co-ordination of efforts by governments and society towards the implementation of social programmes/policies for the development of families belonging to the Programme
Characteristics
Focused on families rather than on individual members;
Unification of selection criteria and beneficiary conditions;
Integration of efforts between different levels of the government (de-centralised, intersectional);
National coverage with gradual implementation in municipalities;
Characteristics
Government commitment to families:
Direct transfer of income to the families (through bank card)
Supervision through government control as well as social control
State bank as an operating agent: system development (registry, selection), payment of benefits, distribution of cards.
Federal bodies engaged with Fome Zero
• Ministry of Social Development & Fight against Hunger - MDS
• Ministry of Agrarian Development - MDA
• Ministry of Health - MS
• Ministry of Education - MEC
• Ministry of Agriculture, Livestock & Food Supply - MAPA
• Ministry of Labor and Employment - MTE
• Ministry of National Integration - MI
• Ministry of Planning, Budget & Management - MP
• Ministry of Finance - MF
• Office of the Civil Staff of the Presidency of the Republic - PR
• General Secretariat of the Presidency of the Republic/Communication
Secretariat - PR
• Offices of the Special Advisors of the Presidency of the Republic - PR
• National Food and Nutrition Security Council - Consea
Institutional Mechanisms
The National Food Security Council-
CONSEA: At the centre of this network
CONSEA, a consultative and advisory
body directly subordinated to the
Presidency of the Republic, is responsible
for the formulation of guidelines for
ensuring fulfillment of the human right to
food, while maintaining permanent
channels of communication with all sectors
of the government, and with society as a
whole.
State and Municipal Food Security
Councils
Since action at the local level is fundamental
for the attainment of Zero Hunger’s goals,
states and municipalities have been
encouraged to establish their own local
Councils to address issues relating to food
and nutritional security.
CONSEA
14- Ministers of State
11 -observers
37 -representatives of civil society
Total membership: 62 counsellors
Lessons for India
• India can draw lessons from this programme which has been designed and implemented in a manner that makes it highly participative and inclusive. The key highlights of this project is the nature in which the database of poor families was captured by the municipalities and social identification numbers were issued and the institutional arrangements that were put in place for achieving the objective of coordination -structural and functional at all levels including federal, state, municipal levels etc.
•
• The primary activity that was taken up as a part of the programme was that of registration of all poor families by the municipality. This database of individuals/register was used as base information by all public agencies, and the federal government used this information as a tool to plan the programme. The federal government also facilitated both organizationally and technically to the municipalities for collecting the data necessary to identify the target groups. The data gathered by the municipalities was processed by the Federal Savings Bank which then assigned the respective Social Identification Number to each of the individuals. Based on the identification numbers payment to the beneficiaries was transferred with regard to social benefits. Previous to this initiative, identification and registration of beneficiaries was taken up separately by the several public agencies and this central registration of eligible families taken up by the government proved very effective as it created greater unity and integration of the registration of data concerning the income transfer programs and the rationalization of the data. The database became an important tool for planning the dimension and distribution of social benefit transfers.
• Despite the government having a pool of data of eligible families, there were a number of problems that came up during the implementation of those income transfer programs due to poor coordination between the various programs and governmental activities. This resulted in waste of resources with few effects. The lack of proper planning and of an administrative model was thus notable and it led to the common observation that there was no unified national policy to combat hunger and that there were propositions that had local affects that focused only on income supplement for poor households with amounts that was not enough to banish hunger.
Lessons for India
• Thus the government brought in comprehensive policies targeted at combating poverty and hunger. CONSEA (National Food and Nutritional Security Council), which was founded in (1992-1994) was an agency formed by government and civil society delegates as a consultation and coordination agency of the governmental policies in the area of food security. The network of institutions, agencies and individuals that has been created in the form of CONSEA is a remarkable initiative, where all the key stakeholders come together on the same platform as a part of the implementation structure. This generated tremendous scope for authentication of processes and made the complete process reliable and participative.
• These are some of the key lessons for India in terms of identification of beneficiaries for various programmes including process authentication aspects. Aadhaar as a national initiative provides the central database for all the agencies implementing welfare programmes to use the information for effective implementation of the programme. But like in the case of Brazil, one of the major problems that Indian faces in the implementation of these programmes like mid-day meal, BPL/APL scheme, Antyodaya, Annapurna scheme, nutrition program for pregnant woman etc is that there are multiple agencies operating in making these programmes happen, and there is a total lack of an overarching structural and legal framework which holistically looks at the food and security issues. There are no mechanisms in place to facilitate effective convergence and coordination (structural, functional, process) at each of these activity level or agency level. An overarching institutional structure needs to be put in place in the context of India to lead the social benefits programme. The Food Security Bill initiated by the Government of India and to be made a law soon will provide this requisite institutional and legal framework necessary for achieving effective implementation of the programmes.
Lessons for India
• Civil society participation is a key element of the Zero hunger programme. Authentication of processes is ensured through participation of the civil society and beneficiaries at large. India needs to learn from the fact that as a part of this programme networks have been created at community, municipal, state and federal levels, Anti-Hunger Round-Tables (or Alliances), bringing together representatives of government institutions concerned with hunger reduction, programme managers, civil society and unions, with the aim of ensuring the coordination of actions towards the eradication of hunger within their respective areas of responsibility. These networks also effectively help in monitoring of the programme and thus enhancing authentication of the process and activities within the programme. However owing to some basic institutional disparities between India and Brazil there are issues which we need to address before taking up such initiative and applying the elements of zero hunger programme on lines of Brazil. (Vyasulu, 2010) highlights issues like intergovernmental relations, decentralization of decision making and other issues as bottlenecks in the Indian context and absence of scope for vertical planning and horizontal integration which includes freedom to reallocate budgets, freedom to choose what schemes are to be implemented, what should be postponed or rejected have not be devolved to local governments, making policies to suit typical local needs etc. These issues needs to be addressed for effective implementation of such schemes and programmes.
PDS: Process & Implementation Gaps
• Organizational/functional aspects
– Structural gaps
– Reporting relationships
– HR issues
• Process Gaps
– Lack of comprehensive stakeholder database
– Use of Manual Methods
– Lack of convergence
– Lack of performance accountability systems
– Poor monitoring
– Minimal use of technology
• Governance gaps
– Lack of transparency in the
system
– Lack of adequate participation
from users/beneficiaries
– Ineffective grievance redressal
mechanisms
– Lack of motivation for staff in
the supply side
Key Process and Authentication Gaps
Design/Structural Issues:
The public distribution system involves a number of agencies and multiple stakeholders in the completion of
the process. Each of its function is performed by one stakeholder or a group of stakeholders and these
separate units are established as per their objectives, design and location needs. Thus the design and
structural aspects limit effective interaction between these agencies especially because Government
agencies inherently have the nature of working in silos. All these units/agencies work simultaneously with
marginal or no structural inter-linkages. This structural limitations cause ineffectiveness in the delivery
process.
Food & Civil
Supplies
Department
Revenue
Department
Civil Supplies
Corporation
Lifting, Movement,
Stocking & Delivery
Vigilance &
Enforcement
Monitoring,
Inspection &
Revenue
Collection
Food Corporation of India,
Warehousing Corporation,
Private Agencies
Procurement &
Storage
Panchayati Raj
Department
Monitoring &
Oversight
Reporting Relationships
Assistant Supply
Officer
District Supply
Officer
Manager – State
level, F&CS Dept
District Manager
State level- Civil
Supplies Corp
Food Inspectors
Mandal Revenue
Officer
Joint
Collector/RDO
Collector
Principal Secretary/
Secretary/Commissioner
Minister Civil Supplies Minister, Revenue
Principal Secretary/
Secretary/Commissioner
Principal Secretary/
Secretary/Commissioner
Human Resource Issues
• The public distribution system is heavily process ridden and very few activities are automated. Almost all the key activities in the public distribution system are done manually with the available manpower including lifting, weighing stacking, etc of commodities including monitoring at least at the operational levels. Due to acute shortage of manpower most of the activities are done in a haphazard manner. This gives rise to scope for mis-management and irregularities in the system.