1. By-­‐TEAM
CHRISTITES
Anusha
Dwivedi
Krupa
Joshi
Bhimanandham
Jaya
Madhuri
Earlu
Sirisha
Santanu
Das
Batch-­‐MBA-­‐Christ
University
Institute
of
Management(CUIM)
Bangalore,India

2. Objec&ves
of
Public
Distribu&on
System
(PDS)
Ø Providing
food
grains
and
other
essential
items
to
vulnerable
sections
of
the
society
at
reasonable
(subsidized)
prices.
Ø
To
put
an
indirect
check
on
the
open
market
prices
of
various
items.
Ø
To
attempt
socialization
in
the
matter
of
distribution
of
essential
commodities.

5. Public
Distribu,on
System
Flow
— .
FARMERS
CENTRAL
GOVERNMENT
STATE
GOVERNMENT
DISTRICT
ADMINISTRATION
BLOCK
ADMINISTRATION
GODOWNS
FAIE
PRICE
SHOP
BENEFICIARY

7. The
Targeted
pubic
distribution
system
is
one
of
the
largest
welfare
programme
for
the
citizens
of
India.
It
is
basically
projected
to
supply
subsidized
food
to
the
poor
households
residing
in
the
nation.
It
is
well
known
that
a
large
piece
of
foodstuff
meant
for
the
PDS
is
sold
in
the
black
market,
and
that
this
sort
of
dishonesty
is
on
the
rise.

8. .
Ø For
the
sake
of
clarity,
the
history
of
PDS
in
India
can
be
broadly
classified
into
four
phase.
The
first
phase
was
from
its
origins
to
1960
when
the
distribution
through
PDS
was
usually
dependent
on
imports
of
food
grains
from
foreign
countries.
Ø
The
second
phase
was
from
1960
to
1978.
It
was
the
phase
when
the
major
organizational
change
took
place.
For
example
in
response
to
the
food
crisis
of
the
mid-­‐1960s,
the
food
security,
procurement
and
storage
was
taken
good
care
by
the
Government
of
India.
Ø The
third
phase,
from
1978
to
1991,
was
effectively
supported
by
domestic
procurement
and
stocks
within
the
country.
Ø
The
fourth
phase,
from
1991
to
the
present,
is
one
in
which
the
policy
of
universal
PDS
has
been
replaced
by
well
groomed
targeted
policy
which
was
quite
in
line
with
the
unique
objectives
of
economic
liberalization.

9. .
Food
grain
entitlement
under
the
TPDS
For
families
living
below
the
poverty
line
(BPL)
Rice
has
to
be
given@Rs.5.65
per
kg
(35
kilos/
month)
or
Wheat
has
to
be
distributed@Rs.4.15
per
kg
(35
kilos/
month)
For
Antodaya
families(Antyodaya
Anna
Yojana
(AAY),
a
central
scheme,
was
launched
in
December
2000
for
one
crore
poor
families.
Rice
@Rs.3
per
kg
(35
kilos/
month)
or
Wheat
@Rs.2
per
kg
(35
kilos/
month).
For
families
living
above
the
poverty
line
(APL)
Rice
@Rs.8.30
per
kg
.
Wheat
@Rs.6.10
per
kg.
Other
Commodities:
Sugar
(Rs.13.50
per
kg),
Kerosene
(approx
Rs.13.50
/
lit)
For
Annapurna
families(the
old
citizens
of
65
years
of
age
and
above
who
do
not
get
benefit
under
Indira
Gandhi
National
Old
Age
Pension
Scheme.)
Ten
kgs
of
free
food
grains
every
month.
Note:
Rice
and
Wheat
prices
are
Central
Issue
Price
.

10. Ø Consumption
from
PDS:
Ø
In
some
parts
of
India
food
is
being
distributed
from
Food
Corporation
of
India(FCI)
go
-­‐-­‐-­‐
downs
to
Fair
Price
shops
that
are
within
25km
radius.
Ø Honest
Efforts
are
made
to
monitor
the
movement
of
stocks
from
Food
Corporation
of
India
depots
to
the
operational
godowns
and
then
to
PDS
outlets.
An
efficient
and
unique
route
chart
is
followed
for
movement
of
the
food
grains
from
the
godowns
and
shops
which
are
being
inspected
by
various
teams
so
that
the
food
grains
reach
the
common
man.
Ø These
shops
are
generally
owned
by
the
government,
a
government
undertaking,
co-­‐operatives,
the
proprietor
of
a
firm
or
even
by
private
persons
(individually
or
jointly).
Ø A
unique
procedure
was
followed
while
classifying
a
“PDS”
.
Ø
It
was
seen
that
PDS
purchases
were
14.6%
of
total
consumption
of
wheat
in
rural
India
and
9%
in
urban
India.
Ø
For
example,
in
case
of
kerosene,
it
was
sold
at
kerosene
depots
at
controlled
prices
under
PDS.

11. The
Challenges
Ø PDS
Leakages-­‐A
large
number
of
families
living
below
the
poverty
line
have
not
been
enrolled
and
therefore
do
not
have
access
to
ration
cards.
Ø Scale
and
Quality
of
Issue-­‐Many
FPS
are
open
only
for
a
few
days
in
a
month
and
beneficiaries
who
do
not
visit
the
FPS
on
these
days
are
denied
their
right.
Ø System
Transparency
and
Accountability-­‐The
system
lacks
transparency
and
accountability
at
all
levels
making
monitoring
the
system
extremely
difficult.
Ø Grievance
Redressal
Mechanisms-­‐There
are
numerous
entities
like
Vigilance
Committee,
Anti-­‐Hoarding
Cells
constituted
to
ensure
smooth
functioning
of
the
PDSsystem.
Their
impact
is
virtually
non-­‐existent
on
the
ground
and
as
a
result,malpractices
abound
to
the
great
discomfiture
of
the
common
man.

12. SOLUTIONS
Ø Roaming
Ration
Cards
providing
an
opportunity
to
short-­‐
term
migrants
to
move
their
ration
cards
to
their
new
area
or
work.
Ø
Direct
Cash
Transfer
Program
where
the
subsidy
will
be
transferred
into
the
bank
account
of
the
beneficiary.
Ø Choice
of
Fair
Price
Shops
should
improve
quality
of
service
and
this
solution
allows
the
incorporation
of
either
limited
or
full
choice
of
FPS.
Ø Food
Stamps
can
be
introduced
allowing
competition
from
existing
food
shops
and
increasing
the
reach
of
the
TPDS
network.

13. MORE
SOLUTIONS
-­‐
Ø IT
based
solution
approach-­‐Bogus
cards
can
be
substantially
weeded
out
and
a
mechanism
put
in
place
to
positively
confirm
and
track
the
individual
beneficiary
offtake
on
a
monthly
basis,
the
problems
relating
to
PDS
leakages,
Transparency
and
Transportation
would
get
resolved,
as
leakage
would
become
more
difficult
to
hide.
Ø Creation
of
a
Beneficiary
Database-­‐The
state
government
should
create
a
high
quality
beneficiary
database,
preferably
commencing
from
a
house-­‐to-­‐house
survey.
The
State
government
can
carry
out
the
enrollment
of
identified
family
members
by
enrolling
them
into
the
UID
(Unique
ID)
program.
Ø Individual
Beneficiary
Tracking.
Ø Information,
Communication
Technology
Infrastructure.
Ø PDS
&
UID
-­‐
A
Synergic
Partnership.