1. PDS: Plugging the Leaks
Improving reach and efficiency of the Public Distribution System
Team:
Gaurav Pande, Electrical Engineering, IIT Delhi
Nikhit Agrawal, Computer Science, IIT Delhi
Payoj Jain, Computer Science, IIT Delhi
Rhythm Gupta, Computer Science, IIT Delhi
Yasoob Haider, Computer Science, IIT Delhi
2. 58% of the
subsidized food
doesn’t reach the
poor.
One rupee of
budgetary consumer
subsidy is worth 27
paise to the poor.
Only 1 kg out of 2.4
kg of subsidized
grains is delivered to
the poor.
Large Scale Leakages
(36.38%)
Diversion
(21.45%)
Thousands of crores of rupees are invested every year on PDS and still
India ranks 65 on Global Hunger Index
3. Can India bear losses of this magnitude when
60% of her population has to sleep hungry
even after 67 years of its independence?
The answer is
NO.
We must find a way out to minimise the loss.
We envisage every citizen of our country to have two strong, healthy pair of hands to
contribute in nation building. This can only happen when we eradicate hunger & malnutrition.
Healthy PDS is a way to Healthy India.
4. Causes:
TargetingErrors
Data used to
identify BPL
households are
not sound
enough.
(Inclusion-
Exclusion
Problem)
GhostBPLcards
The number of
BPL cards are
nearly twice that
of actual BPL
households.
Bogus Cards
InadequateStorage
The loss of nearly
40% of the total
procured food-
grains,
degradation in
the quality,
increase in the
cost as private
go-downs have to
be rented
5. Causes:
UnfairFairPriceShops
Insufficient
profit to the
private
individuals who
run the FPSs,
and thus they
resort to unfair
practices.
Political&Administrative
Unwillingness of
the political
class,
Inactiveness and
Corruption in
bureaucracy.
Political Lobbies
RoleofMiddlemen
At various
stages, like
procurement,
transportation
and distribution,
middlemen
enjoy a fair
share of the
subsidy.
7. Technological Advancements
• Smart cards to each BPL households
• Computerised maintaining of stocks of go-downs
• A separate computerised nodal agency at each district and blocks should be
created
Storage
• Go-downs should be constructed, so as to reduce the rent incurred on the
privately owned storage facilities.
Transportation
• Trucks delivering the food-grains should be painted so as to be distinguished
from a distance
• Rigid time limit for the delivery of food grains to Fair Price Shops
8. Fair Price Shops
• Increase in remuneration for FPS owners
• Transfer of ownership of FPSs to SHGs, Gram Panchayats
• Number of FPSs should be increased from the current 2000
persons per FPSs
• Role of villagers in deciding the location of FPSs instead of
the district administration.
• FPSs should be preferably based in a government building
like panchayat bhawan
• Owners of FPSs should be a locals preferably of the same
locality to which the shop caters
• Extension of FPSs to be opened in areas which are far away
from the FPSs
9. Inclusion Exclusion
• A fresh BPL identification survey through independent agencies engaged
in social science research is required to eliminate targeting errors
• Changes in BPL lists should be stopped for time being.
• Current criteria for BPL determination of centre should not be used,
instead as in Chhatisgarh, data from the 90s can be used for the time
being
Mass Awareness
• Jan Jagran Abhiyaan like nukkad natak should be organised.
• Civil society Members can also play an important role.
Prices
• Frequent changing of prices of food-grains should be stopped
10. Empowering Local Decision Making Body
• Strengthening of Gram Panchayats and Gram Sabhas can go a
long way in strengthening the PDS
• Vigilante groups, from local decision making bodies like Gram
Panchayats, for frequent checking of BPL households and FPSs.
People’s Choice
• Cereals Should be provided on the basis of regional choice
pattern
• Increase the range of commodities available at FPSs to oil, maize
Preventive Measures
• Naming and shaming those who forge BPL cards
• Painting the house of BPL card holders
