1. Public Distribution System Presenter Chandrmouli Singh MBA (AB) I Year11/7/2012 IABM BIKANER 1

2. Flow of PresentationEvolution of Public Distribution SystemProcurement of GrainsIssuesScamsNew Public Distribution System Reforms11/7/2012IABM BIKANER 2 3. Evolution of Public DistributionSystem11/7/2012IABM BIKANER 3 4. Objectives Providing food grains and other essential items tovulnerable sections of the society at reasonableprices To put an indirect check on the open market pricesof various items To attempt socialization in thematter ofdistribution of essential commodities11/7/2012 IABM BIKANER4 5. Present PDS Revamped Public Distribution System June, 1992 Targeted Public Distribution System June, 1997 Antyodaya Anna Yojna April, 200211/7/2012IABM BIKANER5 6. Procurement of Grains11/7/2012 IABM BIKANER6 7. Procurement, Allocation andDistributionCentral government provides guidelines for stategovernmentFood and Civil supply department of state will takecare of its execution Farmer Fair orPriceProducer Shops FCI StatesContd...11/7/2012 IABM BIKANER7 8. Procurement of food grains7060Quantities in million tonnes5040302010 0 2004-2005- 2006- 2007- 2008- 2009- 2010- 2011-05 06070809101112 Procurement Rice 24 26.626.3 26.232.832.531.137.91 Procurement Wheat 16.814.79.211.122.625.325.928.33 Procurement Total 40.841.435.5 37.455.557.956.766.3511/7/2012 IABM BIKANER8 9. Scheme wise off take of food grain from central poolof India (2007 to February, 2012) 200 180 160Figures in lakh tonnes 140 120 10080604020 02007-08 2008-092009-10 2010-11 2011-12BPL 151.25 156.56165.45174.49 159.89APL89.6494.2 160.63166.16 147.21AAY94.37 95.2597.94 96.55 89.7411/7/2012 IABM BIKANER 9 10. Scale of issue & CIPScale of issueYear Scale of issue1997 10 kg/card2000 20 kg/card2001 25 kg/card2002 35 kg/cardCentral issue price ( price per kg in ) in 2011-12CommodityAPLBPL AAYRice 8.305.65 3.00Wheat6.104.15 2.0011/7/2012 IABM BIKANER 10 11. Subsidy BurdenBudgetary subsidy allocation was 60000 croresfor 2011-12 Allocation of subsidies over the years70000 62929.56 58242.456000050000 43668.0842020.34000031259.68300002000010000 0 8.11.2011)(as on2007-08 2008-09 2009-10 2010-11 2011-12Series111/7/2012IABM BIKANER 11 12. Issues11/7/2012 IABM BIKANER 12 13. Diversion of Food Grains Proportion of diverted food grains in market to the total food grains procured Average diversion was 42% during 2009-10 Bihar, Utter Pradesh, Assam, and Rajasthan 85- 90% Jharkhand- 47% Orissa- 30% (PDS survey, June 2011)Contd.....11/7/2012IABM BIKANER13 14. Diversion of food grains in per cent age60.0% 54%50.0% 46.7%43.9% 44% 42%40.0% 39%30.0%23.9%20.0%10.0% 0.0%1999-2000 2001-022003-042005-06 2007-082008-09 2009-10 (Source- http://www.indiastat.com/table/civilsuppliesandconsumeraffairs/4/publicdistributionsystem/79/39807 7/data.aspx)11/7/2012IABM BIKANER 14 15. Wastage of Food Stock Huge amount wasted during storage Spoiled by rodents, insect and moisture Nearly 0.5 Mt of wheat and 4 Mt of rice spoiled annually 0.12 reaches to consumer of every 1 invested11/7/2012 IABM BIKANER15 16. Inferior Quality Deceitful dealers replaced the food stock with inferior stock Supplies are not able to meet the demand of food or having inferior quality 157 complaints in year 201011/7/2012IABM BIKANER16 17. Other Issues Poor transport system Lack of transparency and accountability Bogus ration cards Multiplicity of schemes Incorrect identification of BPL families Inadequate food grains at Fair Price Shop11/7/2012 IABM BIKANER17 18. Scams11/7/2012 IABM BIKANER18 19. Scams Meghalaya PDS Scam (February 2012) 367 sacks of rice and 35 sacks of sugar black- marketed Maharashtra PDS Scam (December 2011) 4.2 million bogus cards found Scam worth 25000 crores Karnataka PDS Scam (July 2011) Worth 1738 crores Arunachal PDS Scam (August 2010) Worth 1000 crores11/7/2012 IABM BIKANER 19 20. Public Distribution System Reforms11/7/2012 IABM BIKANER 20 21. Reforms Introducing IT in present PDS National Information Utility (NIU) resource Token-agnostic technology solution Using Aadhar for PDS enrolment Use of smart cards Direct transfer of subsidies11/7/2012 IABM BIKANER21 22. References http://pdsportal.nic.in www.indiastat.com www.wikipedia.co.in Indian Economy (Pratiyodita Darpan) Economic Survey of India ZENITH International Journal of BusinessEconomics & Management Research Vol.1 Issue1, Oct 2011, ISSN 2249 882611/7/2012 IABM BIKANER 22 23. Any Question11/7/2012IABM BIKANER 23