PDS Chhattisgarh

8/13/2019 PDS Chhattisgarh

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PDSChhattisgarh

Anubhav Sood- 12PGP009

Vikas Kashyap- 12PGP050Umang Agarwal- 12PGP111


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PDS OVERVIEW Commodities namely wheat, rice, sugar and kerosene distributed

Some States/UTs also distribute additional items such as cloth, exercise books, pulses, sal

Consumes around 1% of the countrysGDP

Covers upto 25 % of the poor households

Only 41 % of the food grains released by the government reach their target,Nov 2012 WB

TARGETING

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ROLES

CENTRAL GOVT.

Obtaining supplies,procurement &imports

Procurement price, issueprices to the state & subsidies;

Guidelines to states on thedesign of PDS;

Allotment to states

STATE GOVT.

Receipts of central allocations;

Procurement in the state;

Purchases from other states;

Warehousing;

Determination of:

Consumer issue price;

Commodity coverage;

Ration scales;

Rules for issue of ration cards;FPS license;

Profit margins to FPS;

Periodicity of sale;

Allotment to district and

transport arrangements.

LOCAL

Lifting sto

Issue of ra

Licensing

Arranging

dealers;

Enforcem

vigilance



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DECISIONS

CENTRAL GOVT.

Commodity Coverage;

Total PDS supplies,procurement byimports/exports+inventories;

Size of covered population:exclusions;

Nature of PDS support-total or supplementary;

Preferential treatment to

area or population group; Difference between open

market price by PDS issueprice;

Size of subsidy.

STATE GOVT. Matching of supplies with needs by intra-

state procurement;

Adequate and well-dispersed warehousing; Capacity to buy from other states;

Inclusion of additional goods;

Appropriation of issue price in relation to

open market price;

Commodity Coverage;

Periodicity;

Ration scale;

Cost by ease of getting ration card;

Location and behavior of FPS;

Adequacy and profit margin;

Adequacy and regularity of allotment;

Public, private or cooperative transport of

stocks to FPS; and

Transport charges, zoning for the purpose.

LO Deliv

quali

Prop Cost

Varia

dete

Ensu

of st

the y

Need

rate FPS;

Govt

stock

perfo



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KEY STAKEHOLDERS IN INITIATIV

NATIONAL INFORMATICS CENTRE (NIC): ICT partner in development and implemen

PRIMARY AGRICULTURAL COOPERATIVE SOCIETIES (PACS) and Central Cooresponsible for operating procurement centres across the state and issuing cheques

MARKETING FEDERATION (MARKFED): responsible for overall monitoriprocurement, payment to farmers, and storage of commodities and granting opermission for milling.

DEPARTMENT OF FOOD: responsible for conducting physical verifications, registand granting permission for milling.

CHHATTISGARH STATE CIVIL SUPPLIES CORPORATION (CGSCSC) AND FOOD OF INDIA (FCI): The CGSCSC on behalf of the State Government and the FCIthe Central Government run distribution centres across the state, which receivmilled rice. CGSCSC and FCI determine the amount to be allocated to FPS and the allocated commodities.

FAIR PRICED SHOPS (FPS): sell commodities to consumers at government subsidised



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General Challenges Errors of exclusion that result in beneficiaries falling out of the st

Corruption by private dealers running the Fair Price Shops under

Corruption and leakages in the paddy procurement process and

Leakages during the transportation of food grains to the Fair Pric Limited reach

Delay in monthly allocation

Delay in lifting and transportation

Diversion/leakages

Fake ration cards

Lack of accountability at all levels

Lack of community participation

Unviable to run FPS- unviable self sustainability

Lack of transparency



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CHHATTISGARH STATSDelivery to 34.53 lac cardholders (per month)

1,26,000 tons of Rice

41,700 tons of Wheat

15.5 million litres of kerosene

7000 tons of iodized salt

4,600 tons of sugar

Increase in the Central govt. mandated figure of 42% ( 19 lakh BPL households) to 74 percent (over 36

lakh households)

20thDEC12- Food Security

Enabling around 42 lakhquality subsidised food gr

Cost of Rs. 2311 croexchequer

Around 90% of state hous

Divided into three g

Priority and General


1532 paddy procurement centres of the Central Cooperative Bank and Primary

Cooperative Societies (PACS)

50 storage centres of Marketing Federation (MARKFED)

100 Civil Supplies Corporation distribution centres

35 FCI Rice receiving centres


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Paddy Procurement at MSP

The main crop in Chhattisgarh is paddy. The state governmenpaddy on behalf of the Government of India at MSPs.

This procurement takes place through 1333 Primary ACooperative Societies (PACS)

After converting procured paddy into rice by millers, handeChhattisgarh State Civil Supplies Corporation (CGSCSC) for under PDS.

Chhattisgarh government gives 35 kilogrammes of rice at Rs. 3

to all BPL families through 1058 Fair Priced Shops Prior to 2007, operations at each level from the purchase o

procurement centres, to the issuance of the paddy to the transportation to the warehouses of the CGSCSC and from thFPSs, was recorded manually



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Objective of Initiative

Enhance transparency in operations to mitigate leakdiversion of funds.

Improve the delivery mechanism so PDS commodities target population

Involve citizens in the monitoring process to enhance accou



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n a ve:PROCESS

5 servers maintained by (NIC) for hosting all concerned applimanaging the entire database.

Farmers are registered online and once paddy is procured from

are given computer generated receipts. Paddy procurement & issuing is electronic

Procured paddy is transferred to the 50 computerised storage centres of MARKpaddy are entered on the online interface.

MARKFED issues the paddy to millers, FCI and other storage centres. All issuance online method

Registration of mills in online system to avoid the issuance of paddymills.

Cheques for payment to farmers and delivery orders for mopaddy from the procurement centres to the miller and storageMARKFED and FCI, are printed in real time.


G &


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Workshops were held every 15 days during the initial stages of

to train data entry operators in basic computing. To solve internet connectivity problems at the village procurement

unique approach is followed

Around Two hundred and fifty motorcyclistshave been hired to carry dfrom the procurement centre computers to block headquarters, where thdata onto the central server. They also download, from the server at the bnew software or additional information and carry it to the procurement ce

(But this initiative was increasing overall cost because transport cost was increasi


Initiative: TRAINING & DATACOMMUNICATION

n a ve:


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All old ration cards were cancelled in 2007 & new centrally printed ration cards were issu

A unified computerised database of ration cards was maintained

New cards have two unique identifiersa numeric code and a barcode. All details incluhead of the family, his caste, address, entitlements, ration shop etc. are printed on

With computerisation of ration cards, shop-wise allocations have also become auallocations are fed into the computer at the State level.

Amount of PDS commodities to be delivered is calculated on the basis of:

Allotment of ration cards in that FPS

stock and sale figures of the previous month

To increase transparency- signs painted outside every house, with the details aboutinnovative approach to name and shame households that had Antyodaya ration belong to the category of the poorest of the poor


n a ve:DATABASE


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Management of ration shops from private dealers to community-based organisatipanchayats, women self-help groups (SHGs) and cooperatives

A citizen interface website has been created for citizen awareness and participfunctioning of PDS.

The portal contains all information related to the scheme including a list of rationand details of transport and sales of PDS commodities.

Information on paddy procurement is also made available on the website, which indata detailing the amount of paddy procured from each farmer and money paid.

Citizens can register as active monitors by submitting their e-mail ids and/or mobile nu

An e-mail/ SMS is sent to all registered citizens. Each message contains

Truck number

Quantity of PDS commodities being sent by the truck

Date and time of dispatch & expected date of arrival

If commodities do not arrive at the FPS in full within a reasonable time period,their complaint on the website or call center


Initiative: COMMUNITY PARTICIPA


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GPS tracking of the dispatched trucks

Special, yellow painted trucks are used; the bright colour allowidentification and monitoring by villagers

Mandatory for food grains to reach ration shops by the 6th of evecelebration of Chawal Utsav on 7th, helped plug leaks as well as ensudistribution of rations


Initiative: OTHER INITIATIVESGRIEVANCE REDRESSAL

Grievances registered on the website are tracked through a web app

Dedicated call centre has also been introduced for registering and

complaints.


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Room for Improvement

Ration shops are still out of reach for some locations.

Extension counters are vital for improving the outreach of the PDSas somvulnerable groups, such as the so-called primitive tribal groups, often live

are not easily accessible.

Many households felt that in addition to the foodgrains providration shops, the government should also supply subsidised dal cooking oil.

As rice is the staple food in Chhattisgarh, many households wewith the 10 kg of wheat that is provided as part of the 35 kg

entitlement and wanted it to be replaced with rice.

Households with more than four members suggested that entitlements should be based on the number of individuals bewas not adequate for their monthly consumption



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Debatable Issues

Use Cash Transfer Instead of PDS

Advantages of cash Transfer

Independence Cost of overall system will be reduced

Counter Points Remoteness of banks and markets

Lack of trust in cash transfer due to delay in payment;not good experience MNREGA.

During the lean season, prices of foodgrains in the open market rise due toand the local ration shop is often the only hope for many

What bothered most respondents was the thought of giving up the food secuthe PDSfor unpredictable cash transfers. This was particularly true of womenthat they would lose control over household budgets because it would be moutside the village to withdraw money from the bank and buy things foMany felt that the money intended for buying food would be spent on nparticularly alcohol



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Recommendations

Linking TPDS with UAID (Aadhar).

Use of Biometric Ration Card to prevent forgery.

Coupon based transfer of subsidy by using Direct Cashthrough Post Offices & Banks using internet banking.

Deployment of auto scalable Cloud Solution, which gunlimited resources allocated as per the need.



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Semi-Privatisation of PD


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ROLE OF IRA NUMBER

(INTERACTIVE RATION

ACCOUNT NUMBER)

ADVANTAGESSEMI-PRIVATISATION OF

PDS

The purpose of introducing

IRA number is to keep a

recordof all transactions

between the consumer andfair price shop

Every consumer is issued a

particular unique account

number through which

transparencyis maintained

The main concept is to

introduce e-commercein our

current system throughsetting up a mobile portal

The mobile portal will act as

a hub between all the

consumers

Instant confirmation of

transactions through SMS

Alerts

In present scenario

government is the maincontrolling body in the

existing PDS system

In our concept we introduce

a private company which acts

as medium between the

consumers and the

government

Its functions are as follows:1. Maintenance of mobile

portal

2. Provision of subsidy

3. Management of funds

4. Quality control

5. EAAY Scheme( Extreme

Antayodaya Scheme)

Cut down on Corruption

By introducing a private

company we provide

transparency and cut dow

corruption

Employment: The comp

employs people which cre

a great opportunity for

unemployed

Subsidy control: The

regulation of subsidy is do

to relieve the governmen

from unwanted losses

Quality Control: Food gr

are given a quality check

are distributed under a

standard label

14-02-2014 INDIAN INSTITUTE OF MANAGEMENT RAIPUR`


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EXISTING SYSTEM PROPOSED SYSTEM


G t R f


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Government Reforms

1.Food products packagers, especially those food products that containnutrients for sustaining a good health e.g. wheat, rice, sugar, wheashould be given subsidy or asked to give (under a proper body) by rel

For example manufacturing taxes, service taxes etc.

2.A government body must be formed to manage and control these ma

3.Conduct tenders to give control to private companies.


EAAY (Extreme Antyodaya Anna Y


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EAAY (Extreme Antyodaya Anna YScheme) The Private Company in association with an NGO will conduct this programme.

The Private Company must employ a group of people to provide a specific amount othose who does not hold even an AAY card.

This amount of grain is that which is prescribed by government under AAY scheme.

These employed people must be given salary via Private Company .

Private Company must provide the list of families/peoples covered under EAAY schemwebsite.

The government could also employ the workers who work under NREGA or other goscheme which could help the government to cut the costs and invest more in the P.D


R d K i


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Record Keeping

Every BPL and AAY card holder must be given a unique account number IRARation Account).

Through such record keeping system we can record the information of theare part of such scheme and also hold a ration card.

The Private Company must recharge every IRA number with money pefamily.

Private Company must use Fair Price Shops or the companys Regionacreating their area of work for supplying the grain. It must include IT servicaccessibility to the system.

This recharge is calculated on the basis of difference between market athat government provide to the people.

At present the government tries to lowers the bar by providing subsidies card holder .

But what we are doing is that the subsidy must be directly provided to tform of their recharge and they can easily purchase only food items from it.

Market Price of goods - Ration Card Rates = Subsidy by Govt.= Recharge of IR


Q alit Control and A ailabilit


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Quality Control and Availability

As people can buy anything they want and from and shop. So qualityavailability problem is resolved.

The Privatecompanymust provide Mobile bill to maximum shotheir area .

In Mobilebillthe consumers had to enter the I.R.Anumber andand the like mobile recharge ;but in the reverse process of it; the m

deducted from users account.



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CONCEPT RISKS SOLUTIONS

Why would Government allow this proposal?

The government would have to only reliev

some figures of taxes from the manufactur

and packaging companies and provide a stcost and the rest work would be done by t

Private Company.

Why would private companies involve in such tie

up?

In our system we have given a good offer t

Private Companies to start their business.

Why would shopkeepers be a part of such

scheme?

Shops are given benefits on products they

purchase as well as target completion wag

Quality control?

It would not be a problem as buyers can

purchase any brand of their choice.

Also the Government Body would keep a c

of the quality of products distributed.


Replicating Amul Cooperative


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Replicating Amul CooperativeModel


Salient Features of the Model


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Salient Features of the Model

This model can be extremely effective in case of agriculture. Instead of selling the produmen at low rates, the farmers can sell them to the government at reasonable rates whout effective sales of the produce.

Abhijit Sen a member of the planning commission has called for mobilization of pettyfarmers in the country into cooperatives so they could be in a bargaining position to selfavorable terms.

The Amul cooperative model could be followed in the agricultural sector as it could trigin agricultural development.

Small farmers through their co-operativisation could easily transform the agricultural ecothere will be no wastage of food grains and other commodities which at present goes

one-third of the total produced in India.



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THANK YOU


Documents

PDS Chhattisgarh