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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