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Study on Satisfaction of Beneficiaries towards Public Distribution System in Goa *Dr. Anthony Sathish **Narendra B. Gaonkar ** Associate Professor in Commerce, H.O.D. PG Department of Commerce and Research, Govt. College of Arts, Scienece and Commerce, Quepem-Goa ** Assistant Professor in Commerce, Department of Commerce UG, M. E. S. College of Arts & Commerce, Zuarinagar-Goa. Abstract Public Distribution System (PDS) involves distribution of essential commodities among public. Public Distribution of essential commodities had been in existence in India during the inter-war period. In the state of Goa, the PDS is operated by the State Government. In Goa, the essential commodities such as rice, wheat, kerosene oil and edible oil are distributed through 398 fair price shops. The Department of Civil Supplies and Consumer Affairs of Government of Goa is responsible for procurement and distribution of essential commodities to general public. For the purpose of the study, the primary data was collected from 100 respondents from Below Poverty Line (BPL) as well as respondents from Above Poverty Line (APL).The factors such as commodities offered, Service of Fair Price Shop Owners, Prices of the Commodities on Offer, Communication of Information to PDS beneficiaries, Tangibility and customer care are studied. This paper has analysed the level of satisfaction among beneficiaries towards PDS in Goa. Factor analysis has been used on the data and subsequently, multiple regression analysis is performed. In the past one year, the existence of PDS is debated; in this context the study is important to know the shortfalls in the system. The inputs from this research area will be of keen interest for government bodies such as Department of Civil Supplies and Consumer Affairs, Government of Goa, Consumer Dispute Redressal Commission, Lok Adalat etc. Keywords: Public Distribution; Essential Commodities, Beneficiary, Satisfaction. Mukt Shabd Journal Volume IX, Issue IV, APRIL/2020 ISSN NO : 2347-3150 Page No : 2996

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Page 1: Study on Satisfaction of Beneficiaries towards Public

Study on Satisfaction of Beneficiaries towards Public Distribution System in Goa

*Dr. Anthony Sathish

**Narendra B. Gaonkar

** Associate Professor in Commerce, H.O.D. PG Department of Commerce and Research,

Govt. College of Arts, Scienece and Commerce, Quepem-Goa

** Assistant Professor in Commerce, Department of Commerce UG, M. E. S. College of

Arts & Commerce, Zuarinagar-Goa.

Abstract

Public Distribution System (PDS) involves distribution of essential commodities among public.

Public Distribution of essential commodities had been in existence in India during the inter-war

period. In the state of Goa, the PDS is operated by the State Government. In Goa, the essential

commodities such as rice, wheat, kerosene oil and edible oil are distributed through 398 fair

price shops. The Department of Civil Supplies and Consumer Affairs of Government of Goa is

responsible for procurement and distribution of essential commodities to general public. For the

purpose of the study, the primary data was collected from 100 respondents from Below Poverty

Line (BPL) as well as respondents from Above Poverty Line (APL).The factors such as

commodities offered, Service of Fair Price Shop Owners, Prices of the Commodities on Offer,

Communication of Information to PDS beneficiaries, Tangibility and customer care are studied.

This paper has analysed the level of satisfaction among beneficiaries towards PDS in Goa. Factor

analysis has been used on the data and subsequently, multiple regression analysis is performed.

In the past one year, the existence of PDS is debated; in this context the study is important to

know the shortfalls in the system. The inputs from this research area will be of keen interest for

government bodies such as Department of Civil Supplies and Consumer Affairs, Government of

Goa, Consumer Dispute Redressal Commission, Lok Adalat etc.

Keywords: Public Distribution; Essential Commodities, Beneficiary, Satisfaction.

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Introduction

Food Security has always been a challenge in the country like India. A country where poverty

dictates terms to the people, it becomes all the more important to address the issue of distribution

of staple food supplies to the residents of the country. In this direction, in order to credit the

benefit directly in the account of Beneficiary, the Government of India notified that the subsidies

will no longer be given through Fair Price Shops Owners. The subsidy amount will now be

credited in the respective bank accounts of beneficiaries of Fair Price Shops. However, the

decision of Government of India has led to protests from various groups of Fair Price Shop

Owners that the said decision would impact their services. As of today, the essential

commodities such as rice, wheat, sugar, kerosene and the likes are supplied to the public through

fair price shops in Goa at reasonable prices.

Literature Survey

Literature survey was conducted to know the present status and the research conducted in the

area of Public Distribution System. These studies are;

Prabhakara Raju U. (1986), in his study on Public Distribution System and Consumer Co-

operatives with special reference to Anantapur district attempted to examine the public

distribution system in Andhra Pradesh.

The study suggested that the consumer cooperatives are reliable agencies in the distribution field.

The survey also revealed that all the consumers wanted a rise in the allotted quota of goods

especially rice from fair price shops. Consumers also expressed concern over the irregular

supply. The half of the consumers surveyed, expressed their dissatisfaction over the

measurement and weighing of the food grains. According to the views expressed by most of the

consumers, the convenient period for the sale of the essential goods would be the beginning of

the month. The main problem faced by the fair price shop dealers was found to be low return on

investment.

Fatima K.P., Mary (1996), in a study titled “Public Distribution System in Andhra Pradesh with

reference to Kurnool district” attempted to study the procurement, distribution and pricing

operations. It was observed in the study that a bulk of card holders complain about irregular

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working hours and working days. It further suggested that the enforcement staff of the civil

supplies department must periodically check the working days and working hours and those who

violate rules and regulations must be penalized and debarred from dealership.

Naganathan M. (1999), in the study titled, ‘Evaluation of public distribution system in Tamil

Nadu’ attempted to study the beneficiaries’ reactions of the services rendered by the fair price

shops and to identify the determinants of consumer satisfaction. It also focused on investigating

the changing importance of the objectives of PDS, the problems, policy options and measures to

achieve the stated objectives through a Delphi study. Based on consumer satisfaction ratio (out

of ten variables), only location and distance of fair price shops scored a value greater than one.

The customers were not satisfied with attributes of consumer satisfaction like weighing

procedure and scale of supply. About 60% of respondents welcomed the idea of' setting up all

women FPS, mainly because the rations are mostly being drawn by women. Nearly 45.42 per

cent of the respondents rated the behaviour of the fair price shop employees as indifferent and

18.75 per cent as rude, whereas only 35.42 percent stated that the behaviour of the staff was

courteous.

Kundannavar B. S. (2000), in the study “Public Distribution System and Food Security in

Karnataka; a case study of Dharwad taluka” tried to analyze the working of public distribution

system in selected villages of Dharwad taluka and Dharwad city. From the field investigation the

researcher proves that public distribution system is popular among poor, both in urban and rural

areas. The researcher aimed to reduce the bureaucratization in the distribution process. He was of

the opinion that coupon or food stamps could be utilized in any retail store. This would avoid

administrative problems. He also recommended that panchayat raj institutions should be more

actively associated with public distribution system.

Sujata (2000), in study titled, ‘Management of public distribution system in India with special

reference to Haryana’ focused to examine the level of benefits that the rural and urban dwellers

are able to get from the system of public distribution. The study also aimed at critically analyzing

and evaluating the operating efficiency of the PDS. The major decisions in the organisational and

administrative setup of the PDS were issue of ration cards, commodity coverage, periodicity of

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purchases, the PDS' issue prices and quality of its supplies. Management structure of the PDS at

the national level included the policy formulation, fixing of objectives, strategy for procurement

and distribution of food grains to states. Administrative arrangements to run the PDS directly

affects the operational and viability of these retail outlets. The study reveals that though, prime

objective of FPS dealers in running this business, as revealed by the study is 'Profit' yet majority

of the dealers are not satisfied with the profit margins allowed to them by the government. Some

dealers conceded that corruption at the supervisory staff level compel them to indulge in black-

marketing and other malpractices creating hurdles in providing better services to their customers.

The study also concluded that the extent of benefits derived by the people particularly the poor

from the PDS is quite low.

Rao S.B. (2005), in the study titled “Optimization of Public Distribution System in Chittoor

District of Andhra Pradesh; a System Approach”, aimed at designing an optimized distribution

system of PDS of Chittoor district. The findings of the study predicted that the quantitative

techniques usage is varying among hierarchy levels, age groups and functional levels.

Jadhav R.J., Mudalkar P.K. (2013) in the study “Smart Card Based e-PDS System” suggested

system of smart card based e-PDS which successfully finishes user’s requirement by providing

instant information. According to the researcher the proposed system fulfils all the set objectives

of PDS.

Dhiman P.K., Kaur G.G. (2014), in the study “Impact of Public Distribution System on BPL

Families; An Analysis of Punjab” attempted to examine the quality, price, availability and

accessibility of food grains supplied to the people by Government under Public Distribution

system. Non-availability of the ration and rude behavior of dealers are the most frequent

problems faced by the people visiting ration shops. It has been found that the non-availability of

food grains is due to various reasons like storage and transport problems, irregular supply from

government, black marketing and lack of government supervision and control. Majority of

respondents find fault with the government rather than the dealers.

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Gupta A.K., Saxena A. (2014), in the study titled “Significance of Public Distribution System

in an Indian State -Uttar Pradesh” found that Above Poverty Line ration card holders, Below

Poverty Line ration card holders and Antodaya Anna Yojana were allotted only 72.68 lakhs

tonnes of food grains in 2012-13. Further in the entire state of Uttar Pradesh, only 65.68 lakhs

tonnes of food grains were distributed.

Identification of Research Problem

The literature surveyed reveals that there are many studies undertaken to know the problems

associated with public distribution system across states in India. The studies have focused on

malpractices by fair price shop owners, dissatisfaction among beneficiaries towards public

distribution system, ownership of fair price shop by women, bureaucracy in distribution process,

operating efficiency of public distribution system, profit margin of fair price shops, lack of

government supervision, irregular supply from government, unavailability of information at fair

price shops etc.

However, no such study has been undertaken in the state of Goa. In the context to state of Goa,

the present study aims to study the satisfaction among beneficiaries on Public Distribution

System.

Objectives of the Study

The main objective of the study is to examine the Satisfaction among Beneficiaries towards

Public Distribution System in Goa. However, the specific objectives of the study were as under:

1. To study the operations of Public Distribution System in Goa.

2. To study the satisfaction of beneficiaries with regards to Public Distribution System in

Goa.

Research Methodology

Universe and sample size

Universe

The state of Goa has been considered as the Universe.

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Sample size

For the purpose of the study, the sample size of 100 beneficiaries of public distribution system in

Goa has been conveniently selected and studied.

Scope of the Study

The study is limited to area pertaining to state of Goa. It is also based on beneficiaries’ feedback.

Sources of Data

The study is based on the data collected from both primary and secondary sources.

Primary Data

The primary data is collected from 100 beneficiaries of PDS, conveniently selected for the study

from the state of Goa.

Secondary Data

The secondary data has been mainly collected from the printed matters of Department of Civil

Supplies, Government of Goa.

Period of the Study

The period of study is the period of survey i.e. from 1st January 2020 to 28th February 2020.

Data Analytical Tools

Data collected has been analyzed using the following statistical tools. They are:

1. Factor Analysis

2. Regression Analysis.

Hypothesis

Ho: There is no significant influence of Service by Fair Price Shop Owner, Quality, Store

Attributes, Awareness about Prices, Timely Service, Hygiene and Display of Information on

satisfaction of beneficiaries of PDS with regards to public distribution system in Goa.

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Public Distribution System in the state of Goa

In Goa, there are 1,49,701 ration cards issued with a number of beneficiaries amounting to

5,89,286 in North Goa. The South Goa District has 1,73,466 card holders with beneficiaries of

7,11,794 (http://www.goacivilsupplies.gov.in/Department of Civil Supplies and Consumer

Affairs, Government of Goa). There are total 20 numbers of wholesalers in Goa in Public

Distribution System. The total number of Godowns operating in Goa is 11, comprising of 6 in

North Goa and 5 in South Goa. The total number of fair price shops in Goa is 398. The number

of Fair Price Shops in different talukas are; Sanguem – 17, Ponda - 41, Salcete – 58, Quepem –

23, Canacona – 14, Dharbandora – 9, Pernem – 44, Bardez – 83, Tiswadi – 44, Bicholim – 40,

Sattari – 25. The number of Food Inspectors in Goa are 12, working under the purview of Civil

Supplies Office in Each taluka.

Analysis and Discussion

Table No.1:Reliability Statistics

Cronbach's Alpha No. of Items

.739 19

Source: Computed from Primary Data

The above Table No.1 shows Cronbach's Alpha for Reliability Statistics for 19 variables on

Satisfaction of PDS Beneficiaries on Public Distribution System as 0.739. The minimum

Cronbach's Alpha value accepted for internal consistency of the data is 0.70. Hence, the

Cronbach’s value of 0.739 for 19 variables is considered adequate to judge the internal

consistency of the data.

Table No.2: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .637

Bartlett's Test of

Sphericity

Approx. Chi-Square 743.420

Df 171

Sig. .000

Source: Computed from Primary Data

The Table No.2 Shows Kaiser-Meyer-Olkin Measure of Sampling Adequacy at 0.637. The Chi-

square value is 743.420 for 171 degrees of freedom. KMO value of less than 0.6 is considered

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inadequate as there may be chances of widespread correlations which are further a problem to

perform factor analysis. Hence, the above data with value of 0.637 shows that the sample is

adequate for factor analysis on the data.

Table No. 3: Rotated Component Matrix

Sr.

No.

Factors

Component

1 2 3 4 5 6 7

1 Service by

Fair Price

Shop Owner

Prompt Fair Price Shop Owner .890

Cooperative Fair Price Shop Owner .876

Adequate Information at FPS for

Communication of Prices .563

2 Quality Quality of PDS items .728

Availability of PDS Items .708

3 Store

Attributes

Display of Information on Schemes under PDS

by FPS .713

Appearance of Food Items at FPS .709

Location of Fair Price Shop .666

Handling of Grievances by FPS Owner .590

4 Awareness

about Prices

Awareness about Prices Charged .883

5 Timely

Service

Timely Service by Fair Price Shop Owner .733

Fair Prices of PDS Items .719

Personal Attention to Grievances by FPS Owner .501

6 Hygiene Measures to ensure Hygienic Storage of

Commodities .718

Adequacy of Quantity Supplied .706

7 Display of

Information

Display of Information on Individual Prices of

Commodities by FPS .849

Display of Information on Availability of Stock

by FPS .618

Source: Computed from Primary Data

The result of Varimax with Kaiser Normalization has given seven factors. The above factors

have been named as, Service by Fair Price Shop Owner, Quality, Store Attributes, Awareness

about Prices, Timely Service, Hygiene and Display of Information. The first factor is named as

Service by Fair Price Shop Owner includes the variables such as Prompt Fair Price Shop Owner,

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Cooperative Fair Price Shop Owner and Adequate Information at FPS for Communication of

Prices. The second group of factor has been named as Quality. This factor further includes

variables such as Quality of PDS items and Availability of PDS Items. The third group has been

given name as Store attributes. Store attributes include Display of Information on Schemes under

PDS by FPS, Appearance of Food Items at FPS, Location of Fair Price Shop and Handling of

Grievances by FPS Owner. The fourth factor has been named as Awareness about Prices. This

factor has one variable as Awareness about Prices Charged with a coefficient value of 0.883. The

fifth factor has been named as Timely Service and it further includes variables such as Timely

Service by Fair Price Shop Owner, Fair Prices of PDS Items and Personal Attention to

Grievances by FPS Owner. The sixth factor is termed as hygiene and it includes Measures to

ensure Hygienic Storage of Commodities and Adequacy of Quantity Supplied. The Seventh

factor has been named as display of information. This factor includes variables such as Display

of Information on Individual Prices of Commodities by FPS and Display of Information on

Availability of Stock by FPS.

Table No. 4: Total Variance Explained

Sr. No.

Name of the Factors Eigen

Values % of Variance Cumulative %

1 Service by Fair Price Shop Owner 2.237 11.776 11.776

2 Quality 2.185 11.500 23.275

3 Store Attributes 2.152 11.325 34.601

4 Awareness about Prices 1.837 9.670 44.271

5 Timely Service 1.828 9.623 53.893

6 Hygiene 1.828 9.620 63.514

7 Display of Information 1.583 8.330 71.844

Source: Computed from Primary Data

The above Table No. 4 explains the total variance explained for satisafaction of beneficiaries of

public distribution system in the state of Goa with 19 variables by showing a 71.84% of total

variance with 7 Eigen values i.e. 4.241, 2.322, 1.817, 1.623, 1.382, 1.177 and 1.088. All these

Eigen values are strictly greater than one. This depicts the existence of seven major factors.

Individually these factors are having variances of 22.322, 12.220, 9.564, 8.545, 7.272, 6.193 and

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5.728. Further, according to the variables under each factor; these prominent factors are named

for additional analysis.

Regression Analysis

After performing exploratory factor analysis on 19 variables, 7 prominent factors were extracted.

These seven factors are Service by Fair Price Shop Owner, Quality, Store Attributes, Awareness

about Prices, Timely Service, Hygiene and Display of Information. These seven factors are

further regressed to find study the impact on satisfaction towards Public Distribution System.

Table No. 5: Model Summaryb

Model R R Square Adjusted R Square Std. Error of the Estimate Durbin-Watson

1 .853a .728 .707 .56865 1.770

a. Predictors: (Constant), Display of Information, Hygiene, Timely Service, Awareness about

Prices, Store Attributes, Quality, Service by Fair Price Shop Owner

b. Dependent Variable: Satisfaction with PDS

Source: Computed from Primary Data

The model summary in Table No.5 depicts adjusted R-square at 0.707 and Durbin-Watson Value

at 1.770. This shows that independent variables and the dependent variable of Satisfaction with

PDS has a strong relationship. Durbin-Watson Value is also between the range of relatively

acceptable limit of 1.5 to 2.5.

Table No. 6: ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 79.691 7 11.384 35.207 .000b

Residual 29.749 92 .323

Total 109.440 99

a. Dependent Variable: Satisfaction with PDS

b. Predictors: (Constant), Display of Information, Hygiene, Timely Service, Awareness about

Prices, Store Attributes, Quality, Service by Fair Price Shop Owner

Source: Computed from Primary Data

The Table No. 6 shows that the above multiple regression analysis model is significant at 5%

level of significance.

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Table No.7: Result of Coefficients for satisfaction with Public Distribution System

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) 3.160 .057 55.571 .000

Service by Fair Price Shop Owner .006 .057 .006 .101 .920

Quality .748 .057 .712 13.091 .000

Store Attributes .282 .057 .269 4.941 .000

Awareness about Prices .362 .057 .345 6.341 .000

Timely Service .018 .057 .017 .316 .753

Hygiene -.042 .057 -.040 -.732 .466

Display of Information -.179 .057 -.170 -3.130 .002

a. Dependent Variable: Satisfaction with PDS

Source: Computed from Primary Data

The multiple regression equation is as follows;

𝑦 = 𝛽0 + 𝛽1X1 +β2X2+.....+ 𝜀 (Douglas Montgomery, Peck, & Vinning, 2012).

Where;

Y = dependent variable

𝛽1, β2….. 𝛽𝑛 = Coefficients of the variables

X1,X2…..Xn = Known Variables

The dependent and independent variables are as follows;

Dependent Variable: Satisfaction with PDS

Independent Variables:

Service by Fair Price Shop Owner (X1)

Quality(X2)

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Store Attributes(X3)

Awareness about Prices(X4)

Timely Service(X5)

Hygiene(X6)

Display of Information(X7)

Therefore, the regression equation from table-7 is;

Y= 3.160 + 0.748 X2 + 0.282 X3 + 0.362 X4 - 0.179 X7

The above estimated coefficients represents that the factors identified through exploratory factor

analysis on satisfaction of beneficiaries of PDS towards public distribution system in Goa are

having positive influence. However, the display of information is showing a negative influence

on satisfaction of beneficiaries of PDS towards public distribution system. The coefficient values

of X2, X3, X4 and X7 are significant at 5 % level of significance. The coefficient values of X1, X5

and X6 are insignificant. Since the p-values for X2, X3, X4 and X7 are less than 0.05 at 5% level of

significance the null hypothesis Ho is rejected and the alternate hypothesis –H1There is

significant influence of Quality, Store Attributes, Awareness about Prices and Display of

Information on satisfaction among beneficiaries of PDS on public distribution system of Goa is

accepted.

From the above analysis it is evident that Quality, Store Attributes, Awareness about Prices and

Display of Information is must to improve the satisfaction among beneficiaries of PDS on public

distribution system of Goa. Unless the beneficiaries are satisfied with the pubic distribution

system, the intended goals of public distribution system will not be achieved. Efforts are required

to improve the quality of food grains supplied to beneficiaries. The store attributes is also of

prime significance as the food grains are stored at the fair price shop for a period of one month

till the eligible quantity is lifted by the ration card holders (beneficiaries). Awareness of prices of

various commodities and display of information at the fair price shop is necessary as it will

empower the beneficiaries to make a fair deal while availing the service at the fair price shop

owner.

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Conclusion

The main objective of the study was to examine the Satisfaction among Beneficiaries towards

Public Distribution System in Goa. It is evident from the study that satisfaction of the

beneficiaries has been influenced by Quality, Store Attributes, Awareness about Prices and

Display of Information at the fair price shops operating in Goa. These factors have been

identified through exploratory factor analysis. The Department of Civil Supplies in Goa has to

ensure the adequate display of information at fair price shops regarding Schemes under PDS,

Display of Information on Availability of Stock, and Display of Information on Individual Prices

of Commodities. This will help in empowering the beneficiaries of public distribution system as

they will be aware about their entitlements. The Department of Civil Supplies of Goa can

monitor this display of information through the civil supplies Food Inspectors operating in each

taluka. Presently there are 12 food inspectors working in the State of Goa. The store attributes

comprising of Appearance of Food Items at Fair Price Shop (FPS), Location of Fair Price Shop

and Handling of Grievances by FPS Owner can be addressed through orientation programmes

and seminars for fair price shop owners. Further, the quality of food grains supplied can be

monitored by the civil supplies office itself. The storage facility at the godowns in each taluka

and the lifting of stock by the government authorities for onward distribution to beneficiaries of

public distribution system needs to be further looked into in the interest of the beneficiaries.

Scope for further study

A study can be conducted on the working of Fair Price Shops in the structure of Public

Distribution System. Further, a study can also be undertaken to provide solutions for the

challenges faced by beneficiaries and fair price shop owners. A focused study can be conducted

on e-governance in Public Distribution System in future.

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