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PRESENTATION ONSCHEMES OF THE

DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

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Department of Food & Public DistributionGovernment of India

ABOUT THE DEPARTMENT OF FOOD & PUBLIC DISTRIBUTION

Department of Food & Public Distribution is part of Ministry of Consumer Affairs, Food & Public Distribution

Its main functions include – • formulation and implementation of nation policies on

procurement, movement, storage and distribution of food grains

• Implementation of Public Distribution System • Formulation of national policies relating to export/import,

buffer stocking, quality control and specifications of foodgrains

• Price control, Inter-State trade & commerce in and supplly & distribution of Vanaspati, Oilseeds, vegetable oils, cakes and fats

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The President’s Address to the joint session The President’s Address to the joint session of Parliament on 4of Parliament on 4thth June 2009 June 2009

The National Food Security Act-

-will provide a statutory basis for a framework which assures food security for all;

-Every below poverty line family in rural and urban areas to be entitled to 25 kg of wheat or rice per month @ Rs.3 per kg;

-will also bring about systemic reforms in public distribution system.

-Targeted identification cards would subsume and replace omnibus BPL list.

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Consultations with States/UTs, Central Consultations with States/UTs, Central Ministries, Planning Commission etcMinistries, Planning Commission etc

Concept Note on NFSA circulated on 05.06.2009 – responses invited

Consultation meetings held on-

10.06.2009- State Food Secretaries11.06.2009- Central Ministries, Planning Commission12.06.2009- Experts and Economists01.07.2009- Central Ministries, Planning Commission

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Finalisation of draft NFSAFinalisation of draft NFSA

•Empowered Group of Ministers (EGoM) constituted on 14.07.2009

•EGoM has held several meetings to discuss the NFSA with a view to finalising the guidelines for framing the proposed law.

• NAC is considering issues relating to coverage, entitlement, etc.

•Once finalised, the proposed NFS Bill will be placed on website of Department of Food and Public Distribution for public scrutiny and comments.

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HISTORICAL PERSPECTIVE ON PDS

• PDS EVOLVED AS A SYSTEM OF MANAGEMENT OF SCARCITY AND FOR DISTRIBUTION OF FOODGRAINS AT AFFORDABLE PRICES

• PRIOR TO 1992 - PDS WAS A GENERAL ENTITLEMENT SCHEME FOR ALL CONSUMERS WITHOUT ANY SPECIFIC TARGET

• IN JUNE, 1992 REVAMPED PDS LAUNCHED IN 1775 BLOCKS – FOCUS ON HILLY, REMOTE, INACCESSIBLE BACKWARD AREAS, SCALE OF ISSUES 20 Kg. PER CARD

• TARGETED PDS INTRODUCED IN JUNE, 1997 – FOCUS ON BPL FAMILIES

• AAY INTRODUCED IN DEC,2000 THE POOREST OF THE POOR FAMILIES – INITIALLY FOR ESTIMATED 1 CRORE FAMILIES, LATER EXPANDED TO COVER 2.50 CRORE FAMILIES

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TPDS - JOINT RESPONSIBILITY OPERATION

• GOI (CENTRAL POOL OF FOODGRAINS)

• PROCUREMENT and STORAGE• MAINTENANCE OF MINIMUM BUFFER STOCKS• TRANSPORATION UPTO PRINCIPAL DISTRIBUTION CENTRES OF FCI

AND BULK DELIVERY TO STATES & UNION TERRITORIES• ALLOCATIONS TO STATES & UTS

• STATES & UT GOVERNMENTS• STORAGE IN STATE/UT GODOWNS• TRANSPORTATION TO FAIR PRICE SHOPS• DISTRIBUTING TO RATION CARD HOLDERS THROUGH FPS• LICENSING OF AND SUPERVISION OVER FAIR PRICE SHOPS• IDENTIFICATION OF AAY & BPL FAMILIES• ISSUANCE OF RATION CARDS TO ELIGIBLE FAMILIES• ELIMINATING LEAKAGES/ GHOST CARDS ETC

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• Coverage: 6.52 crore BPL families including 2.43 crore Antyodaya Anna Yojana (AAY) families

• 11.52 crore APL families • Foodgrains required: 470 lakh tons annually at

present scale of issue (@35kg/family to BPL and 15kg/family to APL per month)

• No. of ration cards issued by States/UTs: 11.05 crore BPL and 13.23 crore APL ration cards

• No. of Fair Price Shops: 5.04 lakh (including 1.18 lakh run by SHGs / Cooperatives/ Panchayats/ Urban Local Bodies)

Targeted Public Distribution System (TPDS)Targeted Public Distribution System (TPDS)

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Category Scale CIP

AAY 35/-Kgs. Rs.2/-Kg. WheatRs.3/-Kg. Rice

BPL 35/-Kgs. Rs.4.15/-Kg. WheatRs.5.65/-Kg. Rice

APL 15-35/-Kgs. Rs.6.10/-Kg. WheatRs.8.30/- Kg. Rice

Targeted Public Distribution System Targeted Public Distribution System Scale of Issue and CIP of foodgrainsScale of Issue and CIP of foodgrains

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Scale of issue (kg per family per month)- BPL FAMILIES -June 1997-10 kg, April 2000-20 kg, July 2001-25 kg and April 2002-35 kg.

For AAY FAMILIES -December 2000-25 kg, April 2002-35 kg.

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States Scale CategoryJ&K, Hill States, N.E. States, Islands Territories

700 gms. per capita All BPL & APL

Other States 500 gms. per capita BPL

SugarSugar

Scale & Coverage

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Categories Rice Wheat Total

AAY 67.16 34.8 101.96

BPL 113.89 60.92 174.81

APL (@16.2kg.average) 76.16 147.84 224.00

Sub-Total of TPDS # 257.21 243.56 500.77

Other Welfare Schemes * 35.00 15.00 50.00

Flood, Drought, Disasters 18.00 24.00 42.00

Open Market Sales 20.00 30.00 50.00

Grand Total 330.21 312.56 642.77

Annual Requirement of foodgrains for Annual Requirement of foodgrains for PDS and Other SchemesPDS and Other Schemes

* At present levels of allocations. May increase with universalization

(in lakh tonnes)

# At present scale of issue

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Procurement of Foodgrains

Year Rice Wheat Coarse grains Total Procurement

1999-00 182.28 163.55 0.00 345.83

2000-01 212.81 206.30 6.51 425.62

2001-02 221.28 190.54 3.14 414.96

2002-03 164.22 158.01 0.60 322.83

2003-04 228.28 167.95 6.51 402.74

2004-05 246.85 147.87 8.26 402.98

2005-06 276.56 92.26 11.51 380.33

2006-07 251.07 111.28 0.00 362.35

2007-08 287.36 226.89 2.03 516.28

2008-09 336.85 253.82 13.76 604.43

2009-10* 311.26 225.25 4.07 540.58

Average 247.17 176.70 5.13 428.99

(in lakh tons)(in lakh tons)

*As on 21st Sept. 2010

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ALLOCATION AND OFFTAKE UNDER TPDS from 2004-05 to 2010-11

(lakh tons)

YEAR ALLOCATION(RICE & WHEAT)

OFFTAKE(RICE & WHEAT)

% OFFTAKE(RICE & WHEAT)

(BPL+AAY) APL TOTAL (BPL+AAY) APL TOTAL (BPL+AAY) APL TOTAL

2004-05 273.30 443.68 717.00 229.20 64.32 293.55 83.90 14.50 40.90

2005-06 272.70 443.53 716.22 230.85 80.20 311.05 84.70 18.10 43.40

2006-07 273.70 302.83 576.56 229.01 84.68 313.69 83.70 28.00 54.40

2007-08 274.60 118.16 392.78 245.68 87.22 332.90 89.50 73.80 84.80

2008-09 276.01 111.75 387.76 251.80 94.20 346.01 91.20 84.30 89.20

2009-10 276.09 199.94 476.03 263.40 160.63 424.03 95.40 80.3 89.10

2010-11(upto July)

92.25 59.00 151.25 90.14 51.40 141.54 97.7 87.1 93.6

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OTHER WELFARE SCHEMES

• Foodgrains allocated to GoI Ministries and States & UTs at BPL issue prices, and free of cost under village grain bank scheme.

• HRD Ministry Mid Day Meal Scheme• WCD Ministry Wheat Based Nutrition Programme

Nutrition Programme for Adolescent Girls

• RD Ministry Annapoorna Scheme• DFPD Scheme for Welfare institutions

Scheme for SC, ST OBC Hostels Emergency Feeding Programme in KBK districts of

Orissa Village Grain Banks scheme (VGB)

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ALLOCATION OF FOODGRAINS UNDER OTHER WELFARE SCHEMES

RICE & WHEAT (LAKH TONS)

2004-05 141.48

2005-06 94.93

2006-07 56.93

2007-08 45.45

2008-09 41.41

2009-10 42.11

2010-11(upto October 2010)

47.49

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Some challenges in TPDSSome challenges in TPDS• Diversion/leakages• Bogus / ineligible ration cards• Lack of greater community participation in

monitoring• Allotment of FPS dealerships• Viability of Fair Price Shops• Weak Grievance Redressal mechanism

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i) States should undertake a campaign to review BPL/AAY list to eliminate ghost/ ineligible ration cards.

ii) Strict action should be taken against the guilty to ensure leakage free distribution of foodgrains.

iii) For sake of transparency, involvement of elected PRI members in distribution of foodgrains be ensured.

iv) BPL/AAY lists should be displayed at all FPSs.

v) District-wise and FPS-wise allocation of foodgrains should be put on websites and other prominent places, for public scrutiny.

Nine Point Action Plan to Strengthen TPDSNine Point Action Plan to Strengthen TPDS

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vi) Wherever possible, doorstep delivery of foodgrains should be ensured by States, instead of letting private transporters/wholesalers to transport goods.

vii) Timely availability of foodgrains at FPS level and fixed dates of distribution to ration card holders should be ensured.

viii) Training of members of FPS level Vigilance Committees should be ensured.

ix) Computerisation of TPDS operations should be undertaken.

Nine Point Action Plan to Strengthen TPDSNine Point Action Plan to Strengthen TPDS

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• Computerization of TPDS operations– FCI to Block level Godowns. Pilot in 3 Districts each of Andhra

Pradesh, Assam, Chattisgarh & Delhi

• Computerization of ration card related database – 10 states have reported taking up data digitization

• Smart Card based delivery to Ration Card holders – Pilot Project in Haryana & Chandigarh

• GPS based tracking Vehicles transporting TPDS commodities – Tamilnadu, Delhi and Chattisgarh

Technology based applications for improving Technology based applications for improving functioning of TPDSfunctioning of TPDS

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Sl. No. Problem Areas Proposed Solutions

Consumer Issues

1 Duplicate and Bogus Cards Digitization of beneficiary details, Biometrics with De-duplication (UID compliant)

2 Delivery from FPS Smart card, Secured coupons based distribution

3 Grievance Redressal Call Center / Helpline with computer based monitoring in public domain

4 Accountability Performance index at each level, monitoring through online data

5 Transparency SMS based alerts, SMS and Email based queries, Web based Information System in Public domain

Technology in PDS Reform

Some Best Practices Reported by States• ANDHRA PRADESH • Issuance of ration cards under “Iris Biometric Technology” to all

the existing cardholders along with bar coded coupons.

CHHATISGARH• Improving economic viability of FPS - State Government

provided Rs. 42 crores as seed capital to Gram Panchayats and SHGs for running FPS.

• One month credit facility to FPS.• Transparency in distribution - During Rice Utsav, PDS commodities

are distributed in the presence of vigilance committee members and Nodal officer appointed by Collector.

• DELHI • Public Audit System - through the bonafide cardholders to see

records whether they have received entitled foodgrains at prescribed rates.

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Some Best Practices Reported by States- contd.

GUJARAT

• FPS Model Center, the State Government has allowed the Model FPS to sell the daily use items to increase viability of FPSs.

 

KERALA:

• Sabari Stores: For viability of Fair Price Shops (FPS), the Kerala State Civil Supplies Corporation purchase and supply the items on short-term credit basis. The scheme has been implemented in all the district of the State and the FPSs selected were named as “Sabari Stores.

•

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Some Best Practices Reported by States- contd.

MADHYA PRADESH • Credit support facility: On pilot basis, MP State Civil

Supplies Corporation has arranged credit facility for two districts namely Rajgarh and Sagar to facilitate better off-take of foodgrains.

• All Fair Price Shops are operated by Co-operative institutions with compulsory participation of ration card holders to ensure accountability.

• Door-Step-Delivery System

TAMILNADU• Use of GPS technology to tract vehicles transporting

PDS commodities.

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States reported Implementation

1 Review of BPL/AAY lists to eliminate ghost cards 31

2 Action against guilty to curb leakages 33

3 Involvement of PRIs in Distribution of foodgrains 27

4 Display of BPL/AAY list in FPS 30

5 District & FPS wise allocation on website 20

6 Doorstep delivery of foodgrains 17

7 Timely availability of foodgrains 32

8 Training of FPS level vigilance committees 27

9 Computerization of TPDS operations 10

Implementation of Measures to strengthen Implementation of Measures to strengthen Public Distribution SystemPublic Distribution System

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States reported Implementation

10 Adoption of Citizen’s Charter 26

11 Deletion of bogus/ineligible ration cards 25

12 Monthly certification on delivery of foodgrains 20

13 No. of FPS allotted to various groups 29

14 Action against defaulters 26

15 Wheat flour distribution 14

16 Training program taken up 24

17 Public awareness campaign taken up 19

Implementation of Measures to strengthen Implementation of Measures to strengthen Public Distribution System (contd.)Public Distribution System (contd.)

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VILLAGE GRAIN BANK SCHEME• Coverage – Food scarce & drought prone areas,

desert, tribal and hilly areas• Objective – To provide safeguard against starvation

during lean season to marginalised and vulnerable families (BPL/AAY families)

• Scheme Details – Foodgrain @ 1 Qtl/family for maxm. of 40 families on loan basis.

• Govt. grant – Free foodgrain and Rs.12200 per VGB as cash grant for infrastructure costs.

• Eligible agencies – NGOs, SHGs, LBs/VPs/GSs, Community organizations

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VILLAGE GRAIN BANK SCHEME –Implementing States

Andhra Pradesh (6585) Manipur

Assam (100) (67) Meghalaya (44) (40)

Bihar (415) Nagaland (486) (300)

Chattisgarh (1904) (1904) Orissa (500) (500)

Gujarat (354) (226) Tripura (103) (39)

Jharkhand (583) Uttar Pradesh (1281) (500)

Kerala (387) Uttarakhand (55) (55)

Madhya Pradesh (2784) (2644) West Bengal (820) (820)

Maharashtra (1377) (1101) Total - 17 States (18692) (13085)

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VILLAGE GRAIN BANK SCHEME - Issues

• States interest in implementation lacking• Need for Monitoring functioning of VGBs by

States• VGBs to function as lending banks – effective

recovery essential for successful functioning• Timely furnishing of Utilisation Certificates to

GOI

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Publicity cum Awareness in TPDS

• Objective – To create awareness among TPDS beneficiaries on entitlements, rights, price, availability of essential items, etc.

• Scheme Details – for publicity through audio/visual/print media, bill boards, posters, etc.

• Govt. Grant – 80% cash grant of Central Govt. 20% State Share – Given in two installments

• Issues – Lack of State’s interest, Timely UC

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PDS Training

GOI provides grants-in –aid for

• conducting training programmes for officials of State Civil Supplies Departments

• Seminar/workshops for senior level officials of States/UTs and members of vigilance committees under PDS

• Proposals are to be sent by States/UTs to GOI for consideration

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Thank You....