chapter - v system in dindigul district in dindigul...
TRANSCRIPT
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CHAPTER - V
NEW ECONOMIC POLICY AND PUBLIC DISTRIBUTION SYSTEM IN DINDIGUL DISTRICT
The present chapter analyses the data both secondary and
primary which were collected from Dindigul district. The
information gathered relates to the organisation structure of PDS
in Dindigul district, physical and financial performance of PDS
before and after implementation of New Economic Policy its
impact on PDS etc. The secondary data relate to allotment,
supply, prices, off-take, distribution of essential commodities
through fair price shops and number of fair price shops, card
holders etc.
Data collected from District Supplies Office, Tamil Nadu
Civil Supplies Corporation (TNCSC), Taluk Supply Office (TSO),
Co-operative Office and District Collectorate are analysed and
presented in the first part of this chapter. Primary data regarding
socio-economic status of the beneficiaries and non-beneficiaries,
details about awareness and use of PDS by the poor people and
practical difficulties faced by the PDS beneficiaries are also
analysed in detail in the second section of this chapter. A few
hypotheses are also tested with suitable and appropriate
statistical analysis in this chapter.
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5.1 PUBLIC DISTRIBUTION SYSTEM IN DINDIGUL DISTRICT
Cooperatives play a predominant role in the distribution of
essential commodities to 4.43 lakh cardholders in Dindigul
District. Essential commodities of mass consumption like rice,
sugar, wheat and wheat products like rava and maida, edible oil
and kerosene are distributed through five lead societies and 509
link societies by an extensive network of 624 FPS. One of the
unique features of PDS in Tamil Nadu is that no private traders
are given license to run the FPS. At least one FPS is provided to
each revenue village even if the card strength is very low. The
conveniences of the cardholders are given the highest priority.
Even though every revenue village has FPS, there may be still
certain areas, which are far away from the existing shop, and it
may not be easily accessible to these villages. Because of the
limited number of cards in remote areas there is necessary to
open part time FPS. The District Collectors are empowered to
permit the same after obtaining the concurrence of the Registrar
of Cooperative Societies.
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The District Collector is coordinating the PDS activities at
the district level by holding meetings with Civil Supplies Officials,
Regional Managers of the Tamil Nadu Civil Supplies Corporation.
Regional Joint Registrars, Deputy Registrar (PDS) and special
officers of the lead societies, Secretary to Government also
commissioner of Civil Supplies, Chairman-cum-Managing
Director of the Tamil Nadu Civil Supplies Corporation, Registrar
of Cooperative Societies and the Inspector General of Police Civil
Supplies. The organisational structure of PDS in Dindigul District
is exhibited in Figure 5.1
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5.1.1 Fair Price Shops
The Government runs public distribution system through
network of fair price shops, located in urban and rural area all
over the country with the objective of making available foodgrains
to the public at reasonable prices. The fair price shops are
distributing the essential commodities to meet the day to day
needs of the public: Table 5.1 shows the number of ration shop-
taluk wise in Dindigul District.
It is seen that the large number of ration shops had
increased from 476 in 1989-90 to 624 in 1998-99 in Dindigul
District. After the implementation of the New Economic Policy,
the number has risen from 492 in 1991-92 to 624 ration shops
in 1998-99. Large number of ration shops are functioning in
Dindigul Taluk (203), Palani (94), Vedasandur (87),
Oddanchatram (77) and Nilakkottai (74). But the functioning of
FPS in Natham and Kodaikkanal taluks is meagre in number.
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Table 5.2 explains the Number of ration shops in Dindigul
Taluk of Dindigul District. The number of ration shops
in Dindigul Taluk are classified in 11 Frika, namely,
Dindigul Town, Dindigul South, Dindigul North,
Reddiyarchatram, Palakkanoothu, Dharmathupatti, Athoor,
Chinnalapatti, Sempatty, Siluvathur, and Kampliputhur. The
:otal number of ration shops increased from 143 in 1989-90 to
201 in 1998-99 in the study period in Dindigul Taluk. A large
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number of ration shops is located in Dindigul Town Frika (urban)
and Chinnalapatti Frika (Rural). Frika ration shops in Dindigul
Town Frika had increased from 37 to 48, and Chinnalapatti
Frika ration shop increased from 18 to 23 during the same
period in Dindigul Taluk of Dindigul District.
5.1.2 Ration Cards
The government is trying to computerise the PDS system
so as to weed out the bogus cards. Out of the total 1.50 crore
cards, 20 lakhs cards were bogus hence causing a great loss to
the government ex-checker. The new ration cards would be
distributed to the public in three phases. In the first phases, the
new cards would be distributed in Chennai and the other
Corporation areas, while Municipalities and the district
headquarters would be taken up in the second phase, all the
remaining areas -town and village panchayats would be covered
in the third phase.
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In Dindigul district, the number of ration cards was
3,66,642 in 1989-90 and they increased to 4,51,891 cards in
1998-99. Of the total ration cards, Dindigul taluk is having
1,58,529 cards. Similarly, Palani (50,126 cards), Vedasandur
(64,770cards), Nilakkottai ( 62,934 cards) taluks are dominating
in the cards distribution in Dindigul District. Regarding the year
wise growth performance of ration cards in Dindigul District, a
meagre growth in the total number of cards, after the
implementation of the New Economic Policy, i.e., 3,80,372 cards
in 1991-92 and 4,70,854 in 1998-99 respectively. Nearly 70,000
new cards were supplied to the Public v^thin 10 Years in
Dindigul District.
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Table 5.4 shows the number of ration cards supplied in
Dindigul Taluk during the study period from 1989-90 to
1998-99 in Dindigul District. Dindigul Taluk is classified into
eleven (11) Frika. In Dindigul Taluk, ration cards supplied
increased from 124103 in 1989-90 to 158529 in 1998-99.
Nearly 34,000 New cards were circulated to the public during
the period of 10 years. A large number of Ration Cards were
circulated in Dindigul Town Frika (urban) (46019 cards) and
Chinnalapatty Frika (Rural) (17810 cards) in the period on
1998-99 in Dindigul Taluk. The large number of ration card
users are living in Dindigul Town Frika (Urban) and
Chinnalapatti Frika (Rural) in Dindigul Taluk of Dindigul
District.
5.1.3. Stocks and Allotment
The recommended stock of foodgrains on 1st July of every
year is 22.3 million tonnes. The Food Corporation of India (FCI)
had an foodgrain stock of 35.6 million tonnes in -July 1995. FCI
had on excess holding of about 7.72 million tonnes in 1994 and
13.4 million tonnes in 1995 which means that the carrying cost
of buffer stocks increased by 45 percent in 1994 and 78 percent
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in 1995. Since the carrying cost of one tonne of foodgrains in
1994-95 W as Rs. 1447, the extra stock would involve an
additional Central Government expenditure of about Rs. 9689
million in 1994-95. Recently, the Central Government has
permitted the FCI to off-load the foodgrain stocks of the prices
fixed by it. Table 5.5 explains the stock of foodgrains in Dindigul
District during the period from between 1989-90 to 1998-99.
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Table 5.5 reveals that the Rice stock had increased from
114.450 Tonn kilograms in 1989-90 to 11723.606 Tonne
kilograms in 1998-99. The wheat stock increased from 908.933
Tonne kilograms to 966.237 Tonne kilograms during the same
period. Similarly the stock of sugar, rava, maida, kerosene and
palmolin oil had also increased during the same period. It is
inferred that due to price revision and some other reasons, the
stock of essential commodities had increased after the
implementation of New Economic Policy.
The Commissioner of Civil Supplies allot commodity based
on allotment as per card. The present requirement of commodity
is as per unit and per family card prevailing norms for the entire
District and Taluk. Any family having card with 4 and more
members will get 12 kgs of rice. The State Government had
ordered the allotment 20 kgs of rice even though the same would
cost the Government an addition expenditure of Rs. 100 Crores
per annum. This scheme was effectively implemented without
any hesitation and hindrance. Giving free rice to the Old Age
Pensioner (OAP) and physically handicapped persons are some of
the other activities of PDS System.
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Distribution
After implementation of NEP, family card is getting the 20
Kgs of rice, 2 Kgs of sugar, 5 Kgs of wheat, 5 Kgs of maida, 1
Litre of palmoli oil and 15 litres of kerosene in corporation area,
10 litres in township and 31itres in village area.
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5.1.4 Supply
Table 5.7 explains the supply of foodgrains in Dindigul
District from 1989-90 to 1998-99. The data were collected from
the Officials of Tamil Nadu Civil Supplies Corporation in Dindigul
Region.
It can be inferred (table 5.7) that the Rice supplies had
increased from 38968.805 Tonnes kilograms to 63024.767
Tonnes kilograms, wheat from 4988.550 tonnes kilogram to
5102.016 tonnes kilogram sugar, from 8437.279 tonne kilograms
to 9709.018 tonne kilograms, Rava from 1581 tonn kilograms to
2046.510 tonne kilograms, kerosene from 524.711 tonne kilo
litre to 1939.503 tonne kilo litre, during the study period from
1989 to 1998-99. But in the case of the supply of palmolin oil
had decreased from 181.890 tonne kilo litre in 1989-90 to
118.701 tonne kilo litre in 1998-99. And its except all other
commodities supplied had increased during the study period.
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5.2 IMPACT OF NEW ECONOMIC POLICY OK PUBLIC DISTRIBUTION SYSTEM
In order to analyse the real impact of new economic policy
on PDS beneficiaries and non-PDS beneficiaries in Dindigul
district, a sample of 100 PDS beneficiaries and 100 non-PDS
beneficiaries were interviewed. The result of the survey is
analysed in this section. The present section has been
categorised into three parts. The first part explains the general
conditions of the sample PDS beneficiaries and Non-PDS
beneficiaries. The changes in asset, employment, income,
expenditure savings and debt position of the respondents after
implementation of New Economic Policy (NEP) are analysed with
the suitable statistical tools in the second part. The last, part of
this section discusses the opinion and awareness about PDS of
the respondents.
5.2.1 General Conditions of the Respondents
The socio-economic conditions are the deciding factors and
they have a direct bearing on the ration cardholder and non-
ration cardholders. Socio-economic conditions of the respondents
are related to various factors like age, sex, community, religion,
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occupation, education, employment, assets and family size, etc.
The respondents are classified into rural and urban households
in order to compare the PDS beneficiaries with the non-PDS
beneficiaries who are having ration cards and those who are not
having ration cards.
Table 5.8 explains the area wise classification of the
sample respondent. Of the 200 sample respondents, in the rural
area, 50 respondents are beneficiaries and 50 respondents
are non-beneficiaries. On the other h a n d in u r b a n area,
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50 respondents are beneficiaries and 50 are non-beneficiaries.
The sample villages are PerumaJkoilpatti and Chinnalapatti . The
sample area is Y.M.R. Patti and Balakrishnapuram in Dindigul
town. Of the PDS Beneficiaries, 85 respondents are cardholders
and 15 respondents are non-cardholders. Of the non-PDS
Beneficiaries, 70 respondents are non-cardholders and 30
respondents are cardholders. It is inferred that 85.00 percent of
PDS beneficiaries are cardholders and 70.00 percent of non-PDS
beneficiaries are non-card holders.
Age
Age is an achieved characteristic in the life cycle of human
beings. Age plays a key role in determining the needs of the
individuals. Needs identification, needs fulfillment and the
process of need fulfillment are to a greater extent related to the
age of the person concerned. Hence knowledge about age is
essential to arrive at meaningful conclusion in these type of
studies. An attempt is made to classify beneficiary and non-
beneficiary sample respondents on the basis of age group and
he same is summarised in Table 5.9.
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In rural area the majority of the PDS beneficiary
households belongs to the age group between 41-50 years
(20 respondents) followed by 31-40 years (15 respondents). The
majority of the non-PDS beneficiary households belong to the age
group between 31-40 years (19 respondents) followed
41-50 years (1.5 respondents). The majority of the non-PDS
respondents belong to the age group between 31-40 years
(27 respondents)followed by 41-50 years (19, respondents). From
the table we conclude that 46.5 percent of the sample
respondents (93 respondents) belongs to the age group between
31-40 years.
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Sex
Sex, the ascribed of human being plays a dominant role in
the life of the human being. Especially in determining the status
and performing certain roles and for even achieving certain
positions because the various other factors such as values,
traditions and cultures play an integral role with this
characteristic in deciding the features. Here in this study, the sex
of the head of the household is analysed and the results are
given in Table 5.10.
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Table 5.10 reveals that in rural areas, 44 PDS beneficiary
respondents are male and 6 are female and 43 non-PDS
beneficiary respondents are male and 7 are female. In urban
area, 45 PDS beneficiary respondents are male and 5 are female
and 46 non PDS beneficiary respondents are male and 4 are
female in the study district. Of the 200 respondents, 89
respondents (44. 5 percent) are male and 11 respondents (5.5
percent) are female. In non-PDS beneficiaries, 89 respondents
(45.5 percent) are male and 11 respondents (5.5 percent) are
female. Thus, 89.0 percent of respondents are male and 11.0
percent of respondents are female in Dindigul District.
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Table 5.11 shows the religion, wise classif icat ion of the
sample respondents in Dindigul district. In Rura l a r e a , 43 PDS
Beneficiaries and 47 non-PDS beneficiaries w e r e H i n d u s .
7 PDS Beneficiaries and 2 non-PDS Benef ic iar ies were
Christians and only 1 non-PDS beneficiary w a s M u s l i m . In
urban area, 35 PDS beneficiaries and 39 non-PDS benef ic ia r ies
were Hindus. 9 PDS beneficiaries and Non PDS benef ic ia r ies
were Christians and 6 PDS beneficiaries a n d 3 non-PDS
beneficiaries were Muslims. It is clear that 82 p e r c e n t of
respondents (164) are belonging to Hindu religion, 1 3 . 0 pe rcen t
of respondents (26) are belonging to Christian re l ig ion and
5 percent respondents (10) are belonging to Muslim, re l ig ion.
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Table 5.12 shows that in the rural area, 26 PDS beneficiary
respondents and 16 non-PDS beneficiary respondents belong to
SC/ST Community, 12 PDS respondents and 18 non-PDS
respondents belongs to MBC Community, 21 PDS respondents
and 30 non PDS respondents belong to BC community and only I
respondent belongs to FC Community. In urban, 27 PDS
respondents, and 9 non-PDS respondents belongs to SC /ST
community, 7 PDS respondents and 6 PDS respondents belong
to MBC community, 11 PDS respondents and 32 non-PDS
respondents belong to BC community and 5 PDS respondents 3
non-PDS respondents belong to the FC community.
It is therefore, inferred that of the 200 respondents, the
82 respondents (41.0 percent) belong to BC Community,
78 respondents {39.0 percent) belong to SC/ST community
31 respondents (15.5 percent) belong to MBC community and
9 respondents (4.5 percent) belong to the FC community.
Education
Education is an important factor, which decides the
standard of living, level of participation in various activities and
one's access to various aspects. Table 5.13 reveals -the
educational status of the sample respondents in Dindigul
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respondents were illiterates; 36 PDS respondents and 25 non
PDS respondent had completed their primary education, 8 PDS
respondents and 13 non PDS respondents had completed their
secondary school education and not a single respondent had
completed above school level. In the urban area 5 PDS
respondents and 13 non PDS respondents were illiterates, 22
PDS respondent and 22 non-PDS respondents had completed
their primary education, 19 PDS respondents and 15 non-PDS
respondents completed their secondary school education and
only 4 PDS respondents had completed above school level.
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Of the 200 sample respondents, 105 respondents
(52.5 percent) had completed primary education, 55 respondents
(27.5 percent) had completed secondary school level,
4 respondents (2.0 percent) had completed above school level
and 36 respondents (18.0 percent) were illiterate in study
district. Thus, 52.5 percent of respondents constituted those who
had completed primary education in Dindigul District and they
formed the major share of the total respondents.
Family Size
Family size is also a deciding factor for food security
because in a small family the access to food can be more and it
may be positive. The family size is determined by certain
sociological factors namely caste and religion and also the
economic status has a role to play in deterauning the family size.
Therefore the average age wise family sizes in the rural and
urban area under study is depicted in Table 5.14.
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From the "Table 5.14, it is seen that the age wise average
family members of the PDS and non PDS beneficiaries in rural
and urban level. In PDS beneficiaries family, the average family
members are 109, 145, 66 and 18 wise in the age group between
0-15, 16-35, 36-50 and above 50 in urban level and in urban
level, 70, 124, 84 and 42 wise in the age group betweenO-15, 16-
35, 36-50 and above 50 in 1999-2000. In non-PDS beneficiaries
level, the age wise average family size are 73,87,22 and 13 wise
in the age group between 0-15, 16-35,36-50 and above 50 in
urban level and in rural level 43,98, 34, and 16 in the age group
between 0-15, 16-35, 36-50 and above 50 in 1999-2000. Thus it
implies that, the age wise average family members of the
beneficiaries are 295(3.92), 454(6.05), 206(2.74) and 89 (1.18)
wise in age group between 0-15, 16-35, 36 - 50 and above 50. In
1999-2000.
5.2.2 Impact of Mew Economic Policy on PDS
Occupat ion
Each and every man on earth has to do some duty, for that he
may be rewarded in terms of monetary benefits or kind. The
occupational status is determined b}' ones educational s tatus
Decause if one is having a higher status in education it means
ha t the occupational status will be high.
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The Table 5.15 shows that out of 100 rural respondents,
8 PDS respondents and 2 non- PDS respondents are cultivators
(Land holders), 25 PDS and 16 non-PDS respondents are
Agricultural labourers, 9 PDS and 22 non-PBS respondents are
non-Agricultural labourers, 2 PDS and 7 non-PDS respondents
are doing business and 6 PDS respondents and 3 non-PDS
respondents are working as professional. Out of 100 urban
respondents, 3 PDS and 4 non-PDS respondents are cultivators
(land holders), 1 PDS and 3 non-PDS respondent are Agricultural
labourers, 35 PDS and 22 non-PDS respondents are doing non
agri labourers, 4 PDS respondents are business, non business
and 7 PDS and 2 non PDS respondents are working as
professional.
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To conclude, 98 respondents (49.0 percent) are working as
non-Agricultural labourers, 45 respondent (22.5 percent) are
Agricultural labourers 32 respondents (11.0 percent) are doing
business, 17 respondents (8.5 percent) are cultivators (land
holders) and 18 respondents (9.0 percent) are working as
professionals in Dindigui District. In the rural area, Agricultural
labourers are higher than other labourers are, and in urban area,
non-Agricultural labourers are higher. The majority of the
respondents were non-agricultural labourers.
Employment
The category of employment of the sample respondent are
agriculture, nan agriculture, business and government workers
etc. The average annual employment of the PDS and non-PDS
beneficiaries in the study district is presented in Table 5.16
respectively.
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The total average number of working days of the PDS
respondents on an average was 175.19 days per year in before
1993-94. At present the total number of working days of the
PDS respondents on an average are 194.34 days per year in
1999-2000 by the PDS beneficiaries. Thus, we conclude that
the number of working days has increased from 191.80 days
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in 1993-94 to 216.36 days in 1999-2000 by the non PDS
beneficiaries.
Assets
The assets of the PDS and non-PDS respondent include
the own house, land holdings, livestock and dead stocks like
utensils, furniture, radio, cycle, jewels, etc. The asset
particulars of the sample respondents is exhibited in Table
5.17
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It is clear that the total average assets value was increased
from Rs.4766 in 1993-94 to Rs.6524.9 in 1999-2000. Nearly
Rs.2000 had increased in the during period for the PDS
beneficiaries. And the average assets value was increased from
Rs.9097.6 in 1993-94 to Rs. 11236.3 in 1999-2000, nearly
Rs.2200 has increased during the study period for the non PDS
beneficiaries.
Income
Income is the deciding factor of one's standard of living,
access to food, economic status, access to various infra-
structural facilities, family size and type. Thus the monthly
income of respondents analysed in Table 5.18 &19.
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Table 5.18 shows the average monthly income of the PDS
respondents period before 1993-94 and in 1999-2000. Among the
PDS Beneficiaries, a comparison between before 1993-94 and in
1999-2000 in rural areas shows that PDS average income h a s
increased from Rs.363.2 to Rs.449.4. A comparison of before
1993- 94 and in 1999-2000 in urban areas shows the average
income has increased from Rs.537 to Rs. 856.2 by the PDS
Beneficiaries.
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Table 5.19 reveals the average income of rural non-PDS
beneficiaries had increased from Rs.399.2 to Rs.563.4, i.e.,
nearly Rs.200 which they are earning to meet the price rise in the
Public Distribution System and the urban non-PDS Beneficiaries
average income had increased from Rs.654.4 to Rs. 1509.4 i.e.,
nearly Rs.800 they have been earning from the urban sources.
Income Inequality
The level of money income of the individual households is
closely related to the standard of living. The distribution of
money among members of the community determines standards
of living. In macro economic analysis, this must be taken into
account because spending and saving habits are different at
different income levels. So they gave consumers preferences and
the distribution of income governs the patterns of expenditure. It
affects the level of aggregate personal savings. The income
inequality has been analysed by using the formula for Gini Ratio:
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If the concentration ratio is closer to zero, there is equal
income distribution. If the ratio is closer to zero, there is
greater inequality of income distribution. Gini concentration
ratio is calculated and tabulated beneficiary wise as shown in
Table 5.2Q-.
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Table 5.24 shows that the Distribution of Gini Ratio on PDS
and non PDS beneficiaries in 1993-94 and 1999-2000.The Gini
ratio of the PDS beneficiaries are 0.3138 in 1993-94 and 0.4202
in 1999-2000. By the non PDS beneficiaries are 0.3659 in
1993-94 and 0.4785 in 1999-2000. The income ratio has
increased from o.3138 to 0.4202 during the period 1993-94 and
1999-2000 by the PDS beneficiareis and by the non PDS
benefisiaries income ratio has increased from 0.3655 to 0.4785
during the same period.
It reveals that the total annual gross income of the 100 PDS,
100 non-PDS sample house holds for the period of 1993-94 and
1999-2000 year in Dindigul District. Total household income is
Rs. 35,85,500. The sources of income are classified into four
categories, namely, agricultural work, non-agricultural work,
profession, others The main source of their households income
are classified into six groups on the basis of their annual gross
income and the distribution of household income is analysed
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with the help of statistical tools like average, percentage, and
Gini Co-efficient. The objective of the section is to make a
comparison of inequality of income for the PDS beneficiaries and
the non-PDS beneficiaries in the sample block, before and after
the implementation of the New Economic Policy. It implies that
those households who have higher income have less members
and those income is lower have more members. However, larger
number of households is found in the income range of
Rs.25000 -105001. The higher income groups are comparatively
small in number but their influence on total income and
expenditure is significanto
Expenditure Pattern
The total annual consumption expenditure of the household
classified as:
i) Food Expenditure
ii) Non-food Expenditure
Food expenditure includes the expenditure on cereals, rice,
wheat, sugar, rava, maida, palmolin oil, kerosene, pulses, fruits,
edible oil, vegetables, milk and milk products, egg, fish and meat
etc., Expenditure on non-food items refers to expenditure made
by the households on education, entertainment, toilets, and
cosmetics, newspaper and magazines, postage, charity gifts and
donations, etc. 170
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The consumption pattern of the PDS beneficiaries and non-
PDS beneficiaries is analysed in this section. The expenditure
items are classified into food items and non-food items. The
consumption expenditure on food items by the PDS beneficiaries
before 1993-94 and at present are compared in Table 5.25.
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Table 5.25 explains the average monthly consumption
expenditure on food item by the PDS respondents. The average
monthly consumption expenditure of rice quantity changed by
6.5 kg and the value increased to Rs. 148.06. The change in
wheat quantity was 2.2 kg and increased in the value found to
the Rs. 10.85 followed by the changes in the sugar quantity to
7.4kg and the value of Rs.23.2. when compared with the
1993-94 and 1999-2000, the changes were not considerably
higher in the average monthly consumption of the palmolin oil,
mutton, vegetables and fruits and others.
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Table 5.26 briefly explains the average monthly
consumption expenditure on non-food items by PDS
respondent. It is clear that the changes on the non-food
expenditure of the PDS beneficiaries was Rs 498.0 Among the
various expenditures the changes on education expenditure
was higher than other expenditures. The change was very
meagre in the case of house rent and entertainment item.
Average Monthly Consumption Expenditure by t h e Non-PDS Respondent
The average monthly consumption expenditure of non-
PDS Beneficiaries are explained in Table 5.27. The table that
the expenditure on all food items except expenditure on egg
have increased due to the changes in the price level in open
market. The egg price level is steady for past five years due to
the mass production of eggs in Tamil Nadu. While comparing
the consumption expenditure on food items for the different
two periods (1993-94 and 1999-2000) PDS beneficiaries and
non-PDS beneficiaries, the PDS beneficiaries expenditure had
increased at a low level. At the same time the non-PDS
beneficiaries consumption expenditure on food items had
increased at a high level.
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Table 5.28 explains the average monthly consumption
expenditure on non- - food items by the non-PDS beneficiaries.
The average house rent expenditure was increased from Rs.206.6
in 1993-94 to Rs.274.4 in 1999-2000 and the Education
expenditure from Rs.569.5 to Rs.656.8 during the same period.
Medical expenditure was increased from Rs.302.1 in
1993-94 to Rs.673.6 in 1999-2000. Table concludes that all the
non-food expenditure by non-PDS beneficiaries have increased
during the same period.
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From the table 5.29 it is clear that average annual food
expenditure of PDS respondent household is Rs. 11185.63 and
non food expenditure is Rs. 12972.00 in 1993-94 and it has
increased to Rs. 13678.67 and Rs. 18956.4 in 1999-2000. The
average annual food expenditure is Rs. 13390.07 and Non-food
expenditure is 23427.6 in 1993-94 and it has increased to
Rs. 22434.97 and Rs.33090 by the Non-PDS respondents. It is
Inferred that, nearly Rs.8500 had increased from 1993-94 to
1999-2000 by PDS beneficiary and nearly Rs. 18500 had
increased from 1993-94 to 1999-2000 by the non-PDS
beneficiaries.
The above study focused that the average annual number
of working days , asset values and the changes of food and non
food expenditure by the PDS and non PDS respondents . The
analysis were compared between the year 1993-94 and 1999-
2000. The annual number of working days has increased from
191.80 days in 1993-94 to 216.36 days in 1999-2000. The total
assets value has increased from Rs.4766.3 in 1993-94 to
Rs.6542.9 in 1999-2000 for the PDS beneficiaries, and it has
increased from Rs.9097.6 in 1993-94 to Rs. 11236.3 in 1999-
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coefficient of multiple determination (R2) is statistically
significant at 1 % level of probability as evident from the F
statistics. Hence, the proposed model is fit to draw inferences.
The Partial derivatives of both annual income and
household size on food expenditure are statistically significant at
1 percent level. One percent increase in annual income cetaris
paribus would increase on an average by 0.45 percent in the
household expenditure. Interpreted in the same way , one
percent increase in household size cetaris paribus would result
in an increase of 0.21 percent in the annual expenditure.
Therefore as both family income and household income size
tends to increase the annual food expenditure also increases
considerably for the PDS beneficiaries before 1993-94.
Similarly the result of the regression for non-food
expenditure for the PDS beneficiaries of 1993-94 are given in the
same table. It is inferred from the table that nearly 69 percent of
variartion in the non food expenditure is explained jointly by
both household annual income and family size. The F Statistics
is significant at 1 percent level of probability and it is quite good
to draw inference from the above equation.If the household size
is held constant a percent change in annual household income
would result is an increase of 1.11 percent in the non-food
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expenditure by the same token , if household size tends to
increase 1 percent cetaris paribus would result in addition of
0.688 percent in non-food expenditure.
Therefore, for both food and non-food expenditure the
effect of annual household income and household size are both
positive confirming the established theoratical assumption.
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The result of the regression analysis for the proposed
model for the non PDS beneficiaries in 1993-94 is given in table
5.31 . It can be inferred that the wo independent variables could
explain nearly 55 percent of variation in the annual food
expenditure . The coefficient of multiple determination (R ) is
statistically significant at 1 percent level of probability from the F
statistics.
The Partial derivatives of both household annual income
and household size on food expenditure are statistically
significant at 1 percent level. Evaluated at mean level one percent
increase in annual income cetaris paribus would increase on an
average by 0.67 percent in the household expenditure.
Interpreted in the same way , one percent increase in household
size cetaris paribus would increase 0.26 percent in the annual
expenditure. It is evident as both family income and household
size tends to increase the annual expenditure for the non -PDS
beneficiaries before 1993-94 are increases.
As regards the effect of annual household income and
family size on the non food expenditure results as given in Table
5.31 indicates that both the independent variables which are
statistically significant at 1 % percent level of profitability could
1ft £
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explain nearly 49 percent of variation in the non food
expenditure . The coefficient of determination is statis tically
significant at 1 percent level of probability ( F significant at 1 %
Level) thus envisaging to draw inferences from the model for the
non PDS beneficiaries in 1993-94. it is inferred from the table
that a percent increase in annual household income cetaris
paribus would result in an addition of 0.87 percent in annual
non food expenditure. By the same token percent increase in
household size cetaris paribus results in an addition of 0.52
percent in annual non food expenditure and the result is in
confirmatory with the theoretical assumption. Thus, if annual
income and household size tends to increase it will invariably
result in additional food and non -food expenditure.
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percent level of probability. Hence, the proposed model is fit to
draw inferences.
The Partial derivatives of annual income and household
size on food expenditure are statistically significant at 1 percent
level. One percent, increase in annual income cetaris paribus
would increase on an average by 0.354 percent in the household
expenditure. Interpreted in the same way , one percent increase
in household size cetaris paribus would result in an addition of
income of 0.15 percent in the annual expenditure. It is evident
that as both family income and household income size
increases the annual expenditure also increases considerably for
the PDS beneficiaries 1999-2000.
As regard the effect of annual household income and
family size on the non food expenditure results as given in Table
5.32 indicates that both the independent variables which are
statistically significant at 1 % percent level of profitability could
explain nearly 31 percent of variation in the non food
expenditure . The coefficient of determination is statistically
significant at 1 percent level of probability ( F significant at 1 %
Level) tlnas, envisaging to draw inferences from the model for the
non PDS beneficiaries in 1993-94. It is inferred from the table
thst a percent increase in annual household income cetaris
* • •
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paribus would result in an addition of 1.05 percent is annual
non-food expenditure. By the same token percent increase in
household size cetaris paribus results in an addition of 0.514
percent in annual non food expenditure . Thus, if annual income
and house hold size tends to increase it will invariably result in
addtional food and non food expenditure.
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Persual of table 5.33 reveals that the two independent
variables on the dependent variable could explain nearly 55
percent of the variation. The coefficient of multiple determination
(R2) is statistically significant as evident from the F statistic at 1
percent level of probability, hence, the proposed model is fit to
draw inferences.
The partial derivatives of both annual income and
household size on food expenditure are statistically significant at
1 percent level. One percent increase in annual income cetaris
paribus would increase on an average by 0.52 percent in the
household expenditure. Interpreted in the same way , one
percent increase in household size cetaris paribus would result
in an income of 0.20 percent in the annual expenditure. As both
family income and household income size tends to increase the
annual expenditure also increases or the non-PDS beneficiaries
in 1999-2000.
Regarding the effect of annual household income and
family size on the non food expenditure results as given in Table
5.33 indicates that both the independent variables which are
statistically significant at 1 (%) percent level of profitability could
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explain nearly 0.473 percent of variation in the non food
expenditure . The coefficient of determination is statis tically at 1
percent level of probability ( F significant at 1 % Level ) thus ,
envisaging to draw influences from the model run for the non
PDS beneficiaries in 1993-94. It is inferred from the table that a
percent increase in annual household income cetaris paribus
would result in an addition of 0.524 % is annual non food
expenditure. By the same token as the percent increase in
household size cetaris paribus results in an addition of 0.205 %
in annual non food expenditure . The result is in confirmatory
with the theoratically assumption. Thus, if annual income and
house hold size to increase it will invariably result in addtional
food and non food expenditure.
The study reveals that there have been decreasing in the
expenditure on food and non food by PDS beneficiaries . This is
the same trend in the case of non PDS beneficiaries . The
expenditutre made on food and non food due to increase in
income and household size in 1993-94 is greater than that of the
expenditure made on food and nonfood by PDS beneficiariesmin
1999-2000. The reasons behind is that there has been gradual
decreases in the amount of subsidy by the Central Government
and there is slight differences in the prices of the same
commodity in PDS and open market. 152
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Savings and indebtedness
Average monthly savings of the PDS and non-PDS
beneficiary households are explained in Table 5.33. The sources
of savings are Post Office, Banks, Private Money lenders and
others. The table explains the saving amount comparsion
between the year 1993-94 and 1999-2000 in urban and in rural
areas by the PDS and non-PDS respondents.
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The average annual indebtedness of the PDS and Non-PDS
respondents are given in table 5.35 The study found that the
changes in the average annual indebtedness of the PDS
beneficiary households was increased Rs.287 in rural areas and
Rs. 728.6 in urban areas during the period from 1993-94 to
1999-2000. The non PDS beneficiary households average annual
indebtedness was increased Rs.316.4 in rural areas. And the
changes in the average annual indebtedness of the Non-PDS
beneficiary households was increased Rs. 1225.3 in urban areas.
It is clear that the debt position of the PDS beneficiaries and
Non-PDS beneficiary households have increased during the
study period.
5.2.3 Knowledge Attitude aad Practice
The awareness, attitude and practice of PDS beneficiaries
and non PDS beneficiaries are analysed in the forthcoming part
of this chapter.
Distance Between Home and Ration Shops
The beneficiaries' opinions about the distance between
home and ration shop are explained in Table 5.37. The actual
distance classified into two: less than 2km and more than 2km.
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Table 5.36 explains of the distance between home and
ration shop of the opinion of the respondents. Of the 200 PDS
and non PDS respondents in rural and urban, 67 PDS
respondents and 66 non PDS respondents reveals that the
distance between home and ration shop is less than 2km and for
33 PDS respondents it is more than 2km. The opinion about the
ration shop is also explained in the same Table. Of the 200
PDS and non-PDS respondents, 49 PDS and 64 non - PDS
19 y
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respondents answered that the ration shop is convenient, 21
PDS respondent, 20 non PDS respondents asked to set up the
ration shop in their nearby living areas.
Awareness of Availability of Ration Items:
The respondent, response about their awareness of
availability of the ration items is explained in Table 5.37. The
sources of awareness are Dhandora, Announcement, Notice
Board, Friends and Relatives etc.
Table 5.37 reveals that most of the PDS beneficiaries came
to know about the supply of PDS commodities in the concerned
ration shops only through the notice board (33.0 percent) and
friends and relations (25.0 percent) in the study district.
1 9 8
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Distributions of Ration cards
The cardholders are receiving the card from the officials
namely, Revenue official, village leaders and contractors. The
details about the supply of ration cards to the beneficiaries are
explained in Table 5.38.
Of the 115 cardholders, 77 cardholders have received
their ration cards from the Revenue officials, 30 respondents
have received their ration cards from the village leaders and 8
respondents have received their ration cards from the contractor.
So, the revenue officials and village leaders play a significant role
in the supply of ration cards to the beneficiaries of PDS.
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Quality of the PDS Commodity
The PDS Beneficiary opinion about the quality of the PDS
commodity are explained in Table 5.39. The selected PDS
commodities are Rice, Wheat, Sugar, Rava, Maida, Kerosene,
Palmolin oil and etc.,
Table 5.39 shows that a large number of respondent's j
opinions on rice (54) and wheat (57) quality are good, but their
opinion on kerosene (56) and palmolin (59) is fail-. The opinion
about the quality of PDS sugar (16), rava(18) is poor quality. As
per the opinion of this study, the government may cut down the I
poor quality commodities and necessary steps would be taken to
supply the best quality goods under PDS. i
'200
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Quantity
Consumers benefit of public distribution system at
aggregate level was obtained to the tune of Rs. 18.36 crores for
the year 1991-92 sugar, wheat and rice contributed to Rs. 12.29
Rs.4.26 and Rs. 1.41 crores respectively. In Fair Price Shop, all
the commodities are under weight and it must be ensured to the
people, especially below poverty line. The respondents opinion
about the quantity of PDS Commodity are explained in
Table 5.40.
sol.
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Table 5.40 revealed that in rural area, rice commodity
supplied to the card holders is from 17kgs to 18kgs, but average
requirements for one family is 50kg. Wheat commodity supplied
to the public is only 5kg, which is not enough for family. Sugar is
supplied 1.5 kg to 2kg but the actual requirement is 3kg. Rava
and maida supplied is 1kg only. Kerosene supplied under PDS is
2.5 litres per card but actual requirement is 4 litres, palmolin oil
supply is 1 litre. But in rural area, the palmolin is not supplied to
the cardholder. Rice, sugar, wheat, rava, maida are also
adequate to the rural people but at the same time, kerosene is
not adequate to the most of the card holders family. Most of the
respondents opinion is that they want more quantity of kerosene.
In urban area supply of Rice commodity is from 17kg to
20kg. But average actual requirements are 70kg and it is not
enough to most of the cardholder, wheat and sugar supply are
5kg and wheat requirement is enough. Kerosene supply is 10
liters in corporation areas, 5 liters in Municipality area. But
actual requirement is 20 litres in the Corporation area and 8
litres in Municipality area.
£03
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It is inferred that the supply of rice, wheat, sugar, rava,
maida and palmolin under PDS are adequate to the family. But
kerosene is not adequate for the PDS beneficiaries.
Legalization of Ration Card
Table 5.41 explains the legalization of PDS cards given to
others by the respondents. Of the 150 PDS respondents, 76 PDS
respondents are aware that about the card given to others is
legally wrong. But 24 PDS respondents are not awareness about
the card given to others that is legally wrong. Of the 150 non-
PDS beneficiary, 78 respondents are aware and 22 respondents
are not aware about the cards given to others.
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It is clear that (39.0) percent of non-PDS respondents and
(38.0) PDS respondents are aware about the cards given to
others as legally wrong.
The attitude of the PDS beneficiaries and non-PDS
beneficiaries towards the purchase /produce on their own, PDS,
open market are explained in Table- 5.42 The essential
commodities are rice, wheat, sugar, rava, maida, kerosene and
palmolin oil etc.
9.05
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In urban area also, the reasons for not purchasing the
ration items are: no suitable time for purchasing, shortages in
weight, ration shop not functioning regularly in study district. Of
the 30 cardholders of non-PDS respondents, 14 cardholders
stated that no suitable time for purchasing and 7 respondents
answered that the card is mortgaged due to lack of money.
The reasons for not receiving Ration card from the office by
the non-PDS respondent are explained in Table. The reasons are
classified into six i.e., not necessary, change of native place,
recently applied, card cancelled, already applied but delay in
supply of card and not applied.
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The study found that most of the non-cardholders (30.59)
are applying recently for the ration card to the taluk office in the
study district. The awareness about the other uses of ration
cards are given in Table 5.45.
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identification. 46.0 percent of respondents opinion are for getting
a license and passport by the cardholder and non-cardholders.
The PDS System is to function in a good way but due to
some problems it is not able to do so. The respondent opinion
about the way of good functioning fair price shops are exhibited
in Table 5.46. The suggestions are: functioning regularly (21.0
percent), supply entitled quota of ration (29.00 percent), Display
the availability of ration everyday (8.5 percent) and weighment
must be ensured (41.5 percent). It is inferred that supply of PDS
commodities at correct weight would pave the way for effective
functioning of PDS in Dindigul district of Tamil Nadu.
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to the Gram panchayat. The respondent opinion about the Gram
Panchayat run by the PDS is explained in Table 5.47.
The Table 5.48 explains the respondent opinion about
running of PDS by the Gram Panchayat. Majority of the
respondents (76 percent) had accepted the running of PDS
effectively by the Gram Panchayat or under New Panchayat Raj
System!
5.3 GENERAL PROBLEM
During the last decades the PDS dealt with between 11 and
19 tonnes per year, which is about 10 to 15 percent of the total
production of foodgrains in areas with surplus production, and
distributes them in the whole country.
For quite sometime, the PDS has seen as an essential
empowerment of India's food security policy. However, in the
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wake of the New Economic Policy progrmme, which was
introduced in 1991, the PDS has been increasingly criticised.
In an attempt to bring down the subsidy, the government of
India has raised the PDS retail prices several time in the first half
of the 1990's. It means that the price difference between PDS
foodgrains and open market foodgrains come down and that the
willingness of consumers to buy PDS commodities decreased.
Subsequently, since procurement continues the result was an
unprecedented high stock level.
In early 1999 a further price rise of Above Poverty Line (APL)
foodgrains was introduced in order to reduce the subsidy for APL
families. The policy is that Below Poverty Line (BPL) families
receive 10 kilos of foodgrains per month at subsidised prices,
While APL families receive a variable quantity for a higher price
and only during a transition period.
FCI's total procurement and distribution costs (including
processing, storage, and transport and packaging costs) have
been increasing over the years and these costs have to be
reimbursed as subsidy to the FCI. FCI's unit costs of operations
have been increasing at a higher rate than that of the wholesale
price index for all commodities.
212.
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Regarding malnutrition, despite the huge subsidy and the
large-scale of this PDS intervention, the food security of many
vulnerable households is still marginal or insufficient.
Distribution to the states has not been proportionate to the
number of poor people in each state and within the states has
shown that the available supplies have not gravitated in favour
of the poor.
Ration cards are issued only to those households who have
proper registered residential addresses. This means that many of
the poor who are homeless are left out.
The Public Distribution System has remained limited
mostly to urban areas for a considerable period of planning while
the coverage of rural areas was very insufficient. While more than
75 percent of the fair price shops are in rural areas, the level of
their effectiveness in actual supply of essential commodities,
particularly in rural, backward, remote and inaccessible areas
were very limited.
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At present, there is no uniform criterion in storage and
issues of stock from the Food Corporation of India depots.
Construction of godowns without much planning and
consideration of release has resulted over the years in a situation
where bigger godowns continues to be under utilised and smaller
godowns over utilised.
The above analysis on the functioning of Public Distribution
System during the deregulation period in Dindigul District of
Tamil Nadu give clear cut picture about the changes in the
social, economic and cultural attitudes of the people after
implementation of New Economic Policy. The income and
employment pattern, consumption pattern, savings and
indebtedness level of the PDS beneficiaries and non-PDS
beneficiaries have also changed with the influence of the
deregulation under new economic policy in our country.
21.A-.