“PLUGGING THE LEAKS”A thought initiative felt and prepared for bringing out reforms in present PDS

( Public Distribution System) via MANTHAN 2013 by the team:

RENAISSANCE

ANUJ MANTRI

UMESH PATEL

AYUSH MISHRA

VISHAL KUMAR PRASAD

MOHAMMED PARVEZ KHAN

INTRODUCTION

PDS was basically inspired from the British system of rationing system during the world war II which was then established and

stabilized as a venture of FCI which was setup in 1965, with the following primary objectives as :

Providing food grains and other essential items to vulnerable

sections of society at reasonable ( subsidized ) prices.

To have a moderating influence on the open market

prices of cereals, the distribution of which constitutes a

fairly big share of total marketable surplus.

To attempt socialization in the matter of distribution of essential commodities.

PDS corruption estimate Rs. crores

2004-05 Rs 16005

2009-2010 Rs 20746

This number closely matches the lower

bound estimate of 2G corruption.

But 2G scam happens once in a

decade.

“The PDS corruption happens every

year”

STAGES PROBLEMS

1. FARMERS • Unavailability of raw materials

• Lack of resources

2. PROCUREMENT

3. GODOWNS • Obsolete Infrastructure

• Poor maintenance

4. TRANSPORTATION • Leakages

• Supply delays

• Higher cost

5. STATE STOCK HOUSES • Obsolete Infrastructure

• Poor maintenance

• Extortion and less no. of houses

6. FPS • Diversion

• Under weight

• Unfair business

7. CONSUMERS • Unavailability, unaffordability, non

accessibility

• Lack of information

• Exclusion error & Inclusion error

* The current storage capacity is 62.8

million tons, which is proving inadequate

as India had record rice and wheat stocks

of 65.6 million tonnes in its godowns in

early June. Officials say the problem will

only get increased as per present

execution status.

CDBMS

CONSUMERSYSTEM DE STATE

FPSFPSFPS

SALIENT FEATURES

CDBMS will manage and enhance the

accessibility and authenticity of consumers to

PDS

States shall ensure food security of its people

and maintain a real-time accountability to the

central control system.

Consumers can have their eyes. Ears and

voice to all steps and stages of the PDS in this

set of discipline.

Inspectors at each level to check leakages

and unfair business.

Informers at consumer level to improve

transparency and access

THE INSIGHT TO THE INTITATIVE( ACTIONS - STEPWISE, STAGEWISE )

STAGES OF PDS

PROCUREMENT

CENTRAL-STATE

STATE-CONSUMER

PROCUREMENT:

• Encourage small farmers, and their productivity skills.

• SMS alerts- Nowadays person from almost every

section of the society posses a mobile, so govt can

send imp alerts like MSPs, their transaction records.

• Access to the producers and register them so that they

can be benefitted by the system and may be able to

benefit the system.

• FCI godowns

• TRANSPORTATION

• State Stock houses

Elements of CENTRAL-

STATE Stage

• FCI godowns

• TRANSPORTATION

• State Stock houses

Elements of

CENTRAL-STATE Stage

CENTRE-STATE

STAGE

• Appoint engineers and specialists to

come up with very strictly disciplined

system of stock houses comprising

primarily of modern infrastructure

and accessorized with storing

technology skills.

• Mapping of transportation routes

• Increment in no. of stockhouses

• State should be strictly accountable

to the central controlling system, and

produce data of facts, status,

alongwith the set of programs viz.

distribution etc in real time manner,

as our proposed system is highly

network way connected.

• Inspectors and instructors are

needed to be recruited with strict

criteria to check the leakages, black

marketing and to ensure proper

storing techniques and control.

Our Proposed PDS system will have the following impacts and advantages:

Increased System Transparency and Accountability

“The most serious flaw plaguing the system at present is the lack of transparency and

accountability in its functioning”

• The Complete Online Real time synchronization between the Central and State database will

help in making the system more transparent.

• There will be full details on the portal of PDS indicating each and every data related to the

matter.

• Since, each and every step is very transparent, So, the Employees will be accountable for any

flaws or malfunctioning.

• This will also ensure easy and efficient monitoring of each stage working in the system.

Reduced PDS Leakages

“PDS Leakages will be reduced due to the following reasons:

• There will be route Mapping of all the Transportation of Food grains from FCI godowns to

State godowns.

• Due to real time online database, the leakages will be minimized to a large extent.

• The Local Community Inspectors will inspect and enquire about every type of leakages.

• Online biometric card swapping system will eliminate -

• inclusion errors,

• exclusion errors,

• double counting errors,

• Missing household errors and

• Shadow ownership error

• Also, this will lead to a reduction in the number of bogus cards.

• The system will ensure that PDS serves its actual purpose of providing food security to each

and every person in INDIA

Good quality of Food grains and reduction in diversion

• The local community inspector will inspect for the quality of the food grains

• If any FPS is found to be indulging in malpractices, its licence will be cancelled

immediately.

• The complete online system will reduce diversion to a very large extent.

Good Grievance Redressel Mechanism

• “The role and sole of our system is COMMON MAN”

• There will be a strong grievance redressel committee which will include local

members that will identify the grievances and listen and respond to them

immediately.

Suvidha card implementation faces following problems in implementation

• With implementation of modern computing,

chances of hacking increases

• Initial cost will increase due to the installation

of digital devices at every booth

• Chances of malfunctioning or deactivation

of consumer account from data base may

occur.

• Proper firewall with regular updates and

regular check-up will decrease the risk factor

• Reduction in taxes at different levels

• Keeping alternative options will remove the

risk factor

http://www.hindustantimes.com/Punjab/Ludhiana/FCI-rapped-for-wrong-procurement-

policies/SP-Article1-1073245.aspx

http://www.adb.org/publications/how-can-food-subsidies-work-better-answers-india-and-

philippines

http://planningcommission.nic.in/reports/peoreport/peo/peo_tpds.pdf

Tenth Five Year Plan 2002-07

Eleventh Five Year Plan

National Food Security Bill 2013

NCERT Economics

http://indiatoday.intoday.in/story/problem-of-plenty-food-grains-left-to-rot-in-the-open-as-

godowns-overflow/1/252581.html

http://fciweb.nic.in/

http://pdsportal.nic.in/main.aspx

http://mospi.nic.in/