© Associated Asia Research Foundation (AARF)

International Research Journal of Management and Commerce
Vol. 4, Issue 2, February 2017 Impact Factor- 5.564

ISSN: (2348-9766)
Associated Asia Research Foundation (AARF)
Website: www.aarf.asia Email : editor@aarf.asia , editoraarf@gmail.com
A STUDY ON TRANSITION OF PUBLIC DISTRIBUTION SYSTEM (PDS)

INTO A NEW MECHANISM OF TARGETED PUBLIC DISTRIBUTION
SYSTEM (TPDS)
Pullaiah Dudekula1& Prof. Dr. H. Lajipathi Rai2

1
Research Scholar, Department of Commerce, Sri Krishnadevaraya University,
Anantapur, Andhra Pradesh.
2
Senior Professor, Dept. of Commerce & Rector, Sri Krishnadevaraya University,
Anantapur, Andhra Pradesh.
ABSTRACT
India's Public Distribution System (PDS) is the biggest circulation system of its kind in
the entire Globe. PDS was presented around World War II as a war-time apportioning measure.
Prior to the 1960s, appropriation through PDS was by and large dependent on imports of
sustenance grains. It was extended in the 1960s as a reaction to the sustenance deficiencies of
the time; accordingly, the administration set up the Agriculture Prices Commission and the Food
Corporation of India to enhance local acquisition and capacity of nourishment grains for PDS.
By the 1970s, PDS had advanced into a general plan for the dissemination of financed
sustenance. In the 1990s, the plan was patched up to enhance access of sustenance grains to
individuals in uneven and unavailable zones, and to focus on poor people.In this way, in 1997,
the administration propelled the Targeted Public Distribution System (TPDS), with an attention
on poor people. TPDS means to give sponsored sustenance and fuel to the poor through a system
of ration shops. Nourishment grains, for example, rice and wheat that are given under TPDS are
obtained from agriculturists, designated to states and conveyed to the proportion shop where the
recipient purchases his qualification. The middle and states share the obligations of
distinguishing poor people, getting grains and conveying nourishment grains to recipients. In
September 2013, Parliament ratified the National Food Security Act, 2013. The Act depend
largely on the existing TPDS to distribute food grains as legal entitlements to poor families. This
marks a move by making the right to food a justiciable right. To appreciate the implications of
this Act, the present study maps the food supply chain from the farmer to the beneficiary, and
A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories.
International Research Journal of Management and Commerce (IRJMC) ISSN: (2348-9766)
138 | P a g e
identifies challenges to application of TPDS, and debates alternatives to reform TPDS. It also
details state-wise differences in the application of TPDS and confers changes to the existing
system by the Act.
Keywords: Public Distribution System, food safety, hunger, vulnerable section, society,
commodities, TPDS, government policy, Food Security.
Targeted Public Distribution System (TPDS)

The PDS in its original form was widely criticized for its failure to serve the below
poverty line (BPL) population, its urban bias, negligible coverage in the states with the highest
concentration of the rural poor and lack of transparent and accountable arrangements for
delivery. Realizing this, the government streamlined the system by issuing special cards to BPL
families and selling food grains under PDS to them at specially subsidized prices and thus the
Targeted Public Distribution System (TPDS) was introduced in 1997, replacing almost the
universal PDS.
Under this Targeted Public Distribution System (TPDS), each poor family was entitled to
10 kg of food grains per month at specially subsidised prices. This was expected to benefit about
60 million poor families. The identification of the poor is done by the States based on the
methodology of poverty estimates by Planning Commission. As TPDS targets poor people below
the poverty line major food grains including rice and wheat are sold to them from Fair Price
Shops at significantly lower prices than the market rate. The emphasis is on including only the
real poor and vulnerable sections of the society such as landless agricultural labourers, marginal
farmers, artisans/craftsmen (potters, tappers, weavers, blacksmiths, carpenters etc.) in the rural
areas and slum dwellers and daily wagers in the informal sector (porters, rickshaw pullers and
hand cart pullers, fruit and flower sellers on the pavements etc.) in the urban areas.
Review of Literature
Government of India (1998 1999) reported about the revised scheme introduced in the
distribution known as Targeted Public Distribution System (TPDS). This demonstrates a
deviation from the prior ones as in starting now and into the foreseeable future the dissemination
of sustenance grains would be worked under two tier arrangement of conveyance to family
units, those Below Poverty Line (BPL) and those Above Poverty Line (APL). The families are
wanted to get nourishment grains at intensely sponsored costs.Swaminathan Madhura
(2000)pointed that the TPDS is proposed to target the poor people, the subsidy spent by the
139 | P a g e
government for the scheme should be beneficial to the poor people and naturally they should
utilize the benefits by purchasing the allotment of food grains under the scheme. Swaminathan
Madhura (2000) highlighted in his study about the process of identification of the people below
the poverty line and segregating them from those above poverty line is not clearly spelt out in the
altered TPDS policy of 2000. This could as well result in the error of exclusion which was stated
earlier in the critique of targeting policy.Swaminathan and Pedro Medrano (2004) in their
study stated that the selectivity of TPDS has brought in its wake other problems such as the
faulty identification of the poor. Instances of exclusion of genuinely poor households around all
over the country. Leakages, Diversion, Vested interests along with supply of poor quality of
grains supplied have eroded the creditability of the system. Problems have been compounded by
weak financial arrangements at the state and district levels.
Objectives of the Study
As part of the National Food Security Act (NFSA), 2013. The NFSA pursues to make
the right to food a legal entitlement by providing subsidized food grains toclosely two-thirds of
the population. The Act relies on the existing Targeted Public DistributionSystem (TPDS)
mechanism to deliver these entitlements. Hence, in this view the present study focuses on the
below objectives:
1. To describe the functioning of the existing TPDS mechanism and the role played by the
Central and State Governments in India.
2. To explores challenges inthe effective implementation of TPDS and alternatives to
reform the existing machinery.
3. To offer a few suggestions based on the findings of the study
Laws and Regulations governing TPDS
PDS has developed from the late 1930s into its present frame. Table 1 follows the
advancements identified with TPDS since its presentation and the different laws and directions
that represent its usage.
Table -1: Course of events of Evolution of PDS
Phases of Evolution Course of

Particulars
of PDS events
PDS 1940s Launched as general entitlement scheme
TPDS 1997
PDS was revamped to target poor households
140 | P a g e
Phases of Evolution Course of
Particulars
of PDS events
Antyodaya Anna
2000 Scheme launched to target the poorest of the poor
Yojana
PDS Control Order 2001 Government notified this Order to administer TPDS
PUCL vs. Union of Ongoing case in Supreme Court contending that right to
2001
India food is a fundamental right
National Food
2013 Act to provide legal right to food to the poor
Security Act
Source: Compiled from various reports on Food Security & Public Distribution System in India
Transition from TPDS to NFSA
The TPDS was functional in almost all the states and UTs until 2012. In 2013, there was
a paradigm shift in the food security programme in India through the notification of the National
Food Security Act (NFSA). It is a transition from a welfare approach to a rights based approach.
Under the NFSA, every eligible beneficiary is entitled to receive 5 kg of food grain at a highly
subsidised price. A few states have already adopted the NFSA or have implemented a modified
version of the NFSA, whereas the rest of India still follows the TPDS system.
TARGETED PUBLIC DISTRIBUTION SYSTEM (TPDS)
The Government of India launched the TPDS with focus on the poor. Under the TPDS
in June 1997. States are required to formulate and implement foolproof arrangements for
identification of the poor for delivery of food grains and for its distribution in a transparent and
accountable manner at the fair price shop level.
Benefits to large number of poor families
The scheme, when introduced, was intended to benefit about 600 lakh poor families for
whom a quantity of about 72 lakh MT of food grains was earmarked annually. The allocation of
food grains to the States/UTs was made on the basis of average consumption in the past i.e.
average annual off-take of food grains under the PDS during the past 10 years at the time of
introduction of TPDS.
The number of Below Poverty Line (BPL) families was increased w.e.f. 01.12.2000 by
shifting the base to the population projections of the Registrar General as on01.03.2000 instead
of the earlier population projections of 1995. With this increase, the total accepted number of
141 | P a g e
BPL families is 652.03 lakh as against 596.23 lakh families originally estimated when TPDS was
introduced in June 1997. State-wise details of accepted number of BPL families, ration cards
issued, etc. are given under Food Grains Bulletin on Departments web-site, namely,
www.http://dfpd.nic.in/.
Entitlements under TPDS
Eligible beneficiaries are entitled to subsidized food grains such as wheat and rice. States
have the discretion to provide other commodities such as sugar, kerosene, and fortified atta under
TPDS. Table 2 indicates the entitlements across categories.
Table-2: Number of beneficiaries and entitlements
Number of beneficiaries (crore Entitlement of foodgrains

Category
families) (kg/family)
AAY 2.43 35 kg
BPL 4.09 35 kg
APL 11.52 15 - 35 kg
Total 18.04 -
Sources: Unstarred Question No. 256, Lok Sabha, Ministry of Consumer Affairs, Food and
Public Distribution; Department of Food and Public Distribution; PRS.
Fixation of end-retail price
The end retail price is fixed by the States/ UTs after taking into account margins for
wholesalers/retailers, transportation charges, levies, local taxes, etc. Under the TPDS, the States
were requested to issue food grains at a difference of not more than 50 paise per kg over and
above the Central Issue Price (CIP) for BPL families. Flexibility to States/ UTs has been given in
the matter of fixing the retail issue prices by removing the restriction of 50 paise per kg over and
above the CIP for distribution of food grains under TPDS except with respect to Antyodaya
Anna Yogana (AAY) where the end retail price is to be retained at Rs. 2 per Kg. for wheat and
Rs. 3 per Kg. for rice.
IDENTIFICATION OF BPL FAMILIES UNDER TPDS
To work out the population below the poverty line under the TPDS, there was a general
consensus at the Food Ministers conference held in August 1996 for adopting the methodology
used by the expert group set up by the Planning Commission under the Chairmanship of Late
142 | P a g e
Prof. Lakadawala. The BPL households were determined on the basis of population projections
of the Registrar General of India for 1995 and the State wise poverty estimates of the Planning
Commission for 1993-94. The total number of BPL households so determined was 596.23 lakh.
Guidelines for implementing the TPDS were issued in which the State Governments had been
advised to identify the BPL families by involving the Gram Panchayats and Nagar Palikas.
While doing so, the thrust was to include the really poor and vulnerable sections of the society
such as landless agricultural labourers, marginal farmers, rural artisans/ craftsmen such as
potters, tappers, weavers, black-smith, carpenters, etc. in the rural areas and slum dwellers and
persons earning their livelihood on daily basis in the informal sector like potters, rickshaw-
pullers, cart-pullers, fruit and flower sellers on the pavement etc. in urban areas. The Gram
Panchayats and Gram-Sabhas were also to be involved in the identification of eligible families.
Under the PDS (Control) Order, 2001 and TPDS (Control) Order 2015, State Governments are to
formulate suitable guidelines for the identification of BPL while taking care to ensure that the
families so identified are really the poorest.
Under the National Food Security Act, 2013 (NFSA) coverage has been delinked from
poverty. The TPDS (C) Order, 2015 (TPDS) notified on 20.03.2015 to bring the PDS (C) Order,
2001 in consonance with the NFSA requires the State Government to prepare and notify
guidelines for identification of priority households as well as take steps to finalize the list of
eligible households i.e. priority households and the Antyodaya Anna Yojana (AAY) households.
IDENTIFICATION OF ANTYODAYA (AAY) FAMILIES AND ALLOCATION OF

FOODGRAINS
In order to make TPDS more focused and targeted towards the poorest of the poor
category of the population, the Antyodaya Anna Yojana (AAY) was launched in December,
2000 for one crore families.AAY contemplates identification of poorest of the poor families from
amongst the number of BPL families covered under TPDS within the States and providing those
food grains at a highly subsidized rate of Rs.2/- per kg. for wheat and Rs.3/- per kg for rice.
States/UTs are required to bear the distribution cost, including margin to dealers and retailers as
well as the transportation cost.
Thus, the entire food subsidy is being passed on to the consumers under the scheme. The
identification of the Antyodaya families and issuing of distinctive ration cards to these families is
the responsibility of the concerned State Governments. Allocation of food grains under the
143 | P a g e
scheme is being made to the States/ UTs on the basis of issue of distinctive AAY Ration Cards to
the identified Antyodaya families.AAY was initially launched in December, 2000 for one crore
families to be identified from the Below Poverty Line (BPL) families. Coverage under this
scheme has been expanded thrice since then i.e. during 2003- 04, 2004-05 and 2005-06 covering
additional 50 lakh households each time. Thus, the total coverage under AAY was raised to 2.50
crores AAY families (i.e. 38% of BPL).The scale of issue that was initially 25 kg per family per
month has been increased to 35kg per family per month with effect from 1st April, 2002.Detailed
guidelines were issued to the States/ UTs for identification of the Antyodaya families under the
AAY and additional Antyodaya families under the expanded AAY.
ALLOCATION OF FOODGRAINS UNDER TPDS:
Allocation of food grains under the TPDS is made for BPL, AAY and APL families on
the basis of 1993-94 poverty estimates of the Planning Commission projected on the population
estimates of Registrar General of India as on 01.03.2000 or the number of families actually
identified and ration cards issued by State Government, whichever is less.
Accordingly, allocations of food grains for AAY and BPL categories are made @ 35 kg
per family per month to all accepted number of 6.52 crore BPL families including about 2.25
crore AAY families in the country. However, allocation for APL category is made depending
upon the availability of stocks of food grains in the Central Pool and the past off take.
Process for identification of eligible households
The centre and states identify eligible BPL households through a detailed process, as seen in
Table 3 below:
Table - 3: Process for identification of BPL families
Authority Role Details

National Conducts sample survey of consumer Consumer expenditure is the
Sample Survey expenditure every five years expenditure of a household on some
Organisation basic goods and services. The
expenditure on this basket of goods is
the basis for the poverty line
Planning Estimates state-wise poverty, i.e., the Uses NSSO household expenditure
Commission number of people below the poverty data
line
144 | P a g e
Authority Role Details
Central Allocates food grains to each state The number of BPL families has been
government based on state-wise poverty estimates calculated using 1993-94 poverty
of PlanningCommission and estimates by Planning Commission.
population projections of the This number has not been revised
Registrar General of India as of despite the release of new poverty
March 2000 estimates by the Planning
Commission in 2004-05 and 2011-12
Ministry of Comes out with criteria for inclusion Criteria for classification of BPL
Rural and exclusion from BPL list as part of families, as per BPL Census 2002,
Development its BPL Census include parameters like size of land
holding, clothing owned, food
security, means of livelihood etc.
State Identify eligible households Based on the above criteria
governments
Source: Department of Food and Public Distribution; Planning Commission; Ministry of Rural
Development; PRS.
SCALE OF ISSUE OF FOODGRAINS UNDER TPDS
Since 1997, the scale of issue of food grains under TPDS for the BPL families has been
gradually increased from 10 kg. to 35 kg. per family per month. The scale of issue was increased
from 10 kg. to 20 kg. per family per month with effect from 01.04.2000. The allocation of food
grains for the BPL families was further increased from 20 kg. to 25 kg. per family per month
with effect from July, 2001. The scale of issue under BPL and AAY has been revised to 35 kg
per family per month with effect from 01.04.2002 with a view to enhance the food security at the
household level and liquidate surplus stocks of food grains in the Central Pool. APL families are
being allocated food grains between 15 to 35 kg per family per month depending on availability
of stocks and past offtake.
LIFTING AND DISTRIBUTION OF RATION UPTO SIX MONTHS UNDER TPDS
The Department has issued orders in July, 2011 permitting the State/UT Governments for
lifting and distribution of up to six months ration under TPDS in one go, subject to the
following conditions:-
I. There should be no compulsion on the beneficiaries to lift their entitlements of up to

six months in one go. To avoid undue financial burden/inconvenience to the
beneficiaries, this should be purely voluntary.
145 | P a g e
II. The existing system of lifting the quota every month and in installments should be
permitted to continue for those who are not interested or cannot afford to lift the
entire quantity.
III. Adequate publicity should be made about the same. The bulk distribution of food
grains may be made as far as possible in the presence of State Government officials,
representative of PRIs, members of Vigilance Committees in Gram Sabha, NGOs
concerned, etc. to ensure transparency.
IV. Under NFSA 2013, the entitlements of food grains are to be distributed to the eligible
households through TPDS. Hence, States/UTs have been intimated that the above
referred facility for advance lifting and distribution of up to six months ration under
TPDS would apply also for NFSA allocations, subject to the observance of the terms
and conditions stipulated in this Departments instructions.
PUBLIC DISTRIBUTION SYSTEM (CONTROL) ORDER:
TPDS (C) Order, 2015 has come into force on the date of its publication in the Official
Gazette i.e. 20.03.2015. However, the provisions of the PDS (C) Order, 2001 shall continue to
have effect as against the corresponding provisions of this Order in any State which has not
implemented the NFSA, 2013 or is implementing the said Act only in part. Clause 9(1) of the
TPDS (C), Order, 2015 empowers the State Governments to issue an order under Section 3 of the
Essential Commodities Act, 1955 for regulating the sale and distribution of the essential
commodities. However, such order issued by the State Government shall not be inconsistent with
the TPDS (C) Order, 2015. The PDS(C) Order, 2001 as well as the TPDS(C) Order, 2015
empower State Governments to take all necessary steps for ensuring smooth implementation of
TPDS so that the subsidized food grains reach the intended beneficiaries. In order to remove the
restrictions imposed by the TPDS (C) Order, 2015 on fresh identification of AAY families, the
TPDS (C) Amendment Order, 2015 has been notified on 29.10.2015. The TPDS (C) Order, 2015
mainly deals with issues namely:
(i) Identification of eligible households;

(ii) Ration Cards;
(iii) Scale of Issue and Issue price;
(iv) Delivery of food grains
(v) Lifting and Distribution of food grains by States;
(vi) Licensing and regulation of Fair Price Shops (FPSs);
146 | P a g e
(vii) Operation of FPSs;
(viii) Monitoring;
(ix) Transparency and Accountability; and
(x) Penalty and Appeal.
MEASURES TAKEN TO STRENGTHEN TPDS:
To eliminate leakages and to ensure that eligible households receive their entitlements
under the TPDS, the following measures have been taken by this Department which are as
follows:
A. Modernization of TPDS
Modernization including end-to-end Computerization of TPDS has been taken up by the

Department with a view to address challenges such as leakages and diversion of food grains,
inclusion/exclusion errors, fake and bogus ration cards, lack of transparency, weak grievance
redressal, etc. End-to-end Computerization of TPDS is also one of the essential reforms
stipulated under the NFSA, 2013.
B. Implementation of the Nine Point Action Plan
As per evaluation reports on TPDS submitted by PEO, Planning Commission & ORG
MARG in 2005, there were high levels of diversion/leakages of food grains, exclusion and
inclusion errors in identification of Below Poverty Line (BPL) and Antyodaya Anna Yojana
(AAY) families, and operations of fair price shops that were financially not viable. These reports
were shared with all State & UT Governments during five regional and one national level
conference of State & UT Food Ministers and Food Secretaries. Based on this consultation
process, a Nine-point Action Plan was evolved in July, 2006.
C. Concurrent evaluation of TPDS
An evaluation study on functioning of TPDS in six select States i.e. Assam, Bihar,
Chhattisgarh, Karnataka, Uttar Pradesh and West Bengal was awarded to the National Council of
Applied Economic Research (NCAER) in March, 2014. NCAER has submitted the final report
of the Evaluation Study in September, 2015 which has been accepted by the Central
Government. A copy of this Report has been forwarded to concerned State Governments for
taking necessary remedial measures to remove the deficiencies noticed in the functioning of
TPDS, including leakage and diversion of food grains inclusion/exclusion errors and so on.
147 | P a g e
D. Monthly Certification
All State Governments were directed in March, 2008 to obtain monthly certificate
confirming delivery of allocated food grains to the FPS and their distribution to the eligible
households during the allocation month. So far, 24 States/UTs have reported implementation of
monthly certification. In the revised PDS (C) Order, it is proposed that the monthly certificate
shall be signed by the FPS owner and two or more persons as may be prescribed by the State
Governments such as Head of the local authority, Executive Officer/ Secretary of the local
authority, members from the Vigilance Committees, Womens Self Help Group among others.
E. Vigilance Committees
Vigilance Committees have been in existence since the inception of the rationing system
to ensure transparency and proper functioning of TPDS. NFSA, 2013 provides that Vigilance
Committees shall supervise the implementation of all schemes under the Act, inform the District
Grievance Redressal Officer of any violation of the provisions of the Act as well as any
malpractice or misappropriation of funds found by it. Every State Government is thus required to
setup Vigilance Committees at the State, District, Block and FPS levels consisting of such
persons as may be prescribed by the State Government giving due representation to the local
authorities, the Scheduled Castes, the Scheduled Tribes, Women and Destitute Persons or
Persons with Disability. The PDS (C) Order, 2001 stipulates that the meetings of the Committee
shall be held at least once every quarter at all levels. The date and periodicity of the meeting
would be notified by the State Governments. The revised PDS(C) Order also proposes wide
publicity to the date and periodicity of the meeting of the Vigilance Committee.
F. Allotment of Fair Price Shops to Institutions and Groups
Issue of licenses to fair price shops fall within the purview of State/UT Governments.
However, as per NFSA, 2013, States/UTs shall give preference to public institutions or public
bodies such as Panchayats, Self Help Groups, Co-operatives, in licensing of fair price shops and
management of fair price shop by women or their collectives. Clause 9(5) of the TPDS (C)
Order, 2015 reiterates the provisions of NFSA, 2013.
G. Sale of non-PDS items in FPS
To make operations of FPS economically viable, the State/UT Governments have been
advised to allow FPS owners to enlarge basket of commodities by allowing sale of non-PDS
148 | P a g e
items for daily use as per local requirements. 16 State/UT Governments have confirmed that FPS
in these States are selling non-PDS items such as edible oil, pulses, milk powder, soaps, etc.
H. Training Programmes for TPDS functionaries
Under the Plan Scheme on strengthening of TPDS, the Department sanctions funds for
training programmes to be conducted by State and UT Governments for officials of the State/UT
Civil Supplies Departments and Seminars/Workshops/ Conferences for senior level officials of
the States/UTs, etc. engaged in supply management & distribution of essential commodities. For
this purpose, during 2013-14, Rs. 18.00 lakh, Rs.0.45 lakh and Rs.15.68 lakh were released to
State Governments of Gujarat, Nagaland and Chhattisgarh respectively. In the financial year
2014-15, a sum of, Rs.6,30,000/-, Rs.45,000/- and Rs.12,15,000/- were released to State
Government of Mizoram, UT of Puducherry and State Government of Sikkim respectively.
During the financial year 2015-16, a sum of Rs.12,75,500/- has been released to State
Government of Madhya Pradesh.
J. Conference on A Leak Proof TPDS The Way Ahead:
A Conference on A Leak Proof TPDS The Way Ahead was held by the Department
on 30.10.2014 at New Delhi. The Conference was attended by experts from reputed institutions
and representatives of selected State Governments. The main agenda items related to correct
identification of beneficiaries under TPDS, securing the supply chain, delivery at the last mile
and participatory monitoring and implementation. The recommendations of the Conference have
been sent to all States/UTs for necessary action.
NATIONAL FOOD SECURITY ACT, 2013
The National Food Security Act, 2013 (NFSA) was enacted by the Government in the
year 2013 to provide for food and nutritional security in human life cycle approach, by ensuring
access to adequate quantity of quality food at affordable prices to people to live a life with
dignity. The Act inter alia entitles up to 75% of the rural population and up to 50% of the urban
population for receiving subsidized food grains under TPDS, thus covering about two-thirds of
the population. Eligible households comprise of priority households and Antyodaya Anna
Yojana (AAY) households. Persons belonging to priority households are entitled to receive 5 kg.
of food grains per person per month at subsidized prices of Rs.3/2/1 per kg. for rice/wheat/coarse
grains. AAY households, which constitute the poorest of the poor, will continue to receive 35 kg.
149 | P a g e
of food grains per household per month @ Rs. 3/2/1 per kg. for rice/wheat/coarse grains. The Act
also contains provisions for nutritional support to women and children. Pregnant women and
lactating mothers are entitled to meals during pregnancy and six months after the child birth as
well as maternity benefit of not less than Rs. 6,000. Children up to 14 years of age are entitled to
nutritious meals as per the prescribed nutritional standards. In case of non-supply of entitled food
grains or meals, the beneficiaries will receive food security allowance. For effective
implementation and monitoring, the Act also provides for setting up of grievance redressal
mechanism at the District and State levels. Separate provisions have also been made for ensuring
transparency and accountability.
Alternatives to TPDS
There are some alternatives to TPDS, which report some problems during application.
Experts have noted that PDS could be replaced with cash transfers or food coupons.
1. Universal PDS which helps the state avoid errors in targeting beneficiaries.
2. Cash Transfers in which the beneficiaries would be given either cash or coupons by the
state government, which they can exchange for food grains. Such programmes provide
cash directly to a target group usually poor households. Some potential advantages of
these programmes include: (i) reduced administrative costs, (ii) expanded choices for
beneficiaries, and (iii) competitive pricing among grocery stores.
3. Food coupons are another alternative to PDS. Beneficiaries are given coupons in lieu of
money, which can be used to buy food grains from any grocery store. Under this system,
grains will not be given at a subsidised rate to the PDS stores. Instead, beneficiaries will
use the food coupons to purchase food grains from retailers (which could be PDS stores).
Retailers take these coupons to the local bank and are reimbursed with money.
Summary of Findings, Suggestions and Conclusions:
The existing TPDS functions through a multi-level procedure in which the centre and
states share responsibilities. The centre is accountable for obtaining or procurement food
grains, such as wheat and rice, from farmers at a least support price. It correspondingly
allots the grains to each state on the basis of a formula. Within the total number of poor in
each state, state governments are accountable for categorizing eligible households. The
centre transports the grains to the central depots in respective state. Subsequently, each
state government is responsible for delivering the allocated food grains from these depots
150 | P a g e
to each ration shop. The ration shop is the end point at which beneficiaries purchase their
food grains entitlement.
Analyses of TPDS have exposed several gaps in application. These challenges relate to
the erroneous identification of households and a dripping delivery system. Proficient
studies have shown that PDS grieves from nearly 61% error of barring and 25% insertion
of beneficiaries, i.e. the misclassification of the poor as non-poor and vice versa. Another
challenge is the leakage of food grains during transportation to the ration shop and from
the ration shop itself into the open market.
There are other issues to consider with regard to trends in procurement vis--vis
production of food grains. As recent data show, the central government obtains about a
third of the quantity of cereals produced nationally. However, the amount scheduled for
procurement is expected to increase under the Act, raising apprehensions regarding the
sustainability of such a food distribution mechanism. There are also concerns regarding
the financial viability of such a system. The centre bears a large monetary burden, the
food subsidy, because the rate of acquiring and distributing food grains is about six times
its sale price.
It is projected that the food subsidy will rise progressively due to the augmented gaining
of grains under the Act, in relation to costs and other factors. Besides, a performance
audit by the Comptroller and Auditor General has revealed a serious shortfall in the
governments storage capacity. Given the increasing procurement and events of
decomposing food grains, the lack of adequate protected storage is bound to be a cause
for concern.
Regardless of the presence of these difficulties, a few states have actualized changes to
address holes in usage. It is imperative to note that while the inside assumes a major part
in executing TPDS, states have adaptability to tailor TPDS as indicated by their own
needs. This is exhibited in states in various ways. States, for example, Chhattisgarh and
Madhya Pradesh have actualized IT gauges to streamline TPDS, through the digitisation
of apportion cards, the utilization of GPS following of conveyance, and the utilization of
SMS based observing by nationals.
Different contrasting options to TPDS incorporate cash transfers and food coupons.
Recipients would straightforwardly be given either money or coupons which can be
traded for food grains. There are a few contentions both in support and against the
151 | P a g e
adequacy of such measures. Endeavors have been made to present money exchanges for
different plans with the Unique Identification Number as an approach to enhance ID and
counteract spillage of endowment.
References:
i) Government of India (1998 -1999). Economic Survey. http:indiabudget.nic/Indian
goverance.gov.in/Economic Survey.
ii) Swaminathan Madhura (2000). Weakening welfare. The Public Distribution of food in
India. New Delhi: Left Word Books.
iii) Swaminathan Madhura (2000). Dangers of Narrow Targeting: An assessment of TPDS.
CESS seminar paper 12.
iv) Planning Commission (2005). Performance Evaluation of Targeted Public Distribution
System (TPDS), Programme Evaluation Organisation, Planning Commission, GOI, New
Delhi.
v) Planning Commission (2005). Performance Evaluation of Targeted Public Distribution
System (TPDS), Programme Evaluation Organisation, Planning Commission, GOI, New
Delhi.
vi) Planning commission (2008). Government of India, Eleventh Five-Year Plan, Volume
II, New Delhi.
vii) Balchand, K. (2011). BPL Poverty Cap Placed at 46%, The Hindu, 19 May, last
accessed 18 January 2012.
152 | P a g e

© Associated Asia Research Foundation (AARF)

Diunggah oleh

Informasi Dokumen

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

© Associated Asia Research Foundation (AARF)

Diunggah oleh

Hak Cipta:

Format Tersedia

International Research Journal of Management and Commerce

Vol. 4, Issue 2, February 2017 Impact Factor- 5.564

A STUDY ON TRANSITION OF PUBLIC DISTRIBUTION SYSTEM (PDS)

Pullaiah Dudekula1& Prof. Dr. H. Lajipathi Rai2

Targeted Public Distribution System (TPDS)

Phases of Evolution Course of

TARGETED PUBLIC DISTRIBUTION SYSTEM (TPDS)

Benefits to large number of poor families

Entitlements under TPDS

Table-2: Number of beneficiaries and entitlements

Number of beneficiaries (crore Entitlement of foodgrains

IDENTIFICATION OF BPL FAMILIES UNDER TPDS

IDENTIFICATION OF ANTYODAYA (AAY) FAMILIES AND ALLOCATION OF

ALLOCATION OF FOODGRAINS UNDER TPDS:

Process for identification of eligible households

Table - 3: Process for identification of BPL families

Authority Role Details

SCALE OF ISSUE OF FOODGRAINS UNDER TPDS

LIFTING AND DISTRIBUTION OF RATION UPTO SIX MONTHS UNDER TPDS

I. There should be no compulsion on the beneficiaries to lift their entitlements of up to

(i) Identification of eligible households;

Modernization including end-to-end Computerization of TPDS has been taken up by the

F. Allotment of Fair Price Shops to Institutions and Groups

G. Sale of non-PDS items in FPS

H. Training Programmes for TPDS functionaries

J. Conference on A Leak Proof TPDS The Way Ahead:

NATIONAL FOOD SECURITY ACT, 2013

Anda mungkin juga menyukai