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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.
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ISSN NO : 2347-3150
Page No : 2996
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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