+

PLUGGING THE LEAKS :

IMPROVING THE PDS

SYSTEM OF INDIA

+

Low Quality

High Transport Cost

3 Types of Ration cards

Central hoarding

Localized Monopoly

Non Universal

Low Grade products

FAR

MER

S

FC

I

S

tate

go

vt

rat

ion

sh

op

DISTRIBUTION

COST

CORRUPTION

The average level of consumption of PDS grains in India is only 1kg per person per month. According to the planning commission study, In aggregate only about 42% of subsidized grains issued by the central pool reached the target group.

CURRENT PDS SYSTEM AND ITS PARAMETERS..

CURRENT SUPPLY CHAIN..

+ TACKLING THE PROBLEMS OF THE EXISTING SYSTEM..

EQUITABLE DISTRIBUTION ZONING

COST REDUCTION PRIVATISATION

UNIVERSITALITY 3 TIER SYSTEM AND

BIOMETRIC CARDS.

ERADICATING CORRUPTION

AUDITING AND

CONTROL.

+ Zoning

Privatization

CSR

3- tier Distribu

tion System

ration shop

infrastructure

Target populat

ion

OUR MAIN AIM IS TO FOLLOW THESE PROCEDURES STEP BY STEP TO ENSURE THE FOLLOWING END PRODUCT : Tackle CORRUPTION Reduce BUFFER STOCK Provide UNIVERSALITY Ensure that the right PEOPLE receive the right BENEFITS. Ensure optimum QUALITY. Make states SELF SUFFICIENT. Reduce TRANSPORTATION COSTS by creating a simpler

network. Ensure TRANSPARENCY

+ Zoning..Helping states become Self Sufficient.

With the implementation of the solution the first and the foremost step is to categorize 28 states and 7 union territories of India under 5 zones as mentioned in the proposed solution which is referred as zoning . The states have be zoned together after carefully identify the needs and production capacity of wheat, rice, pulses, sugar cane and maize in each of the states and union territories. The central government shall procure the buying and selling of crops from the farmers of the states under a particular zone and allocate them accordingly. this would not only reduce the huge cost of transportation but also makes each state self sufficient and use their resources to the potential without burdening only a few states. Zoning will also help to concentrate the public distribution system of an individual state or a few states which in comparison is much easier to adopt.

However, we suggest an exception for the state of uttarkhand considering the calamity that has occurred in this state. since the production in this state is nearly zero it will have to depend on the other states in the north zone till the time its revived completely.

Also an exception for importing from the other zones shall be made for the north eastern state falling under the eastern zone as the production of wheat, rice, pulses, sugar cane and maize is very little in these states and andra pradesh alone cannot fulfil each and every state’s requirements of these crops .

zones States and union territories

north J&K , punjab, Uttrakhand, himanchal Padesh

south Karnatika, tamil nadu, kerela,

lakashdweep,pondicherry, andarman &

nicobar

East Arunachal Pradesh, Bihar,orissa, west

bengal,daman& dew, dadar& nagar

havelli,sikkim

west Rajasthan,gujrat,maharasatra,chattisgarh,go

a

central Madhya Pradesh,haryana,uttar

pradesh,delhi,jharkhand

+ PRIVATISATION

,We plan to bring in privatization in this sector as well. However we don’t suggest complete privatization but in the ration of 55 – 45 i.e. the central government holds 55% stake or control and the rest 45% is held by the private company hired by the government through tender system. We do understand that the government will have to make such an offer that enables many companies to fill for the tenders and take up this job . Offering a kind of subsidy to the company can be considered as an example. Further, it would be difficult so just one company to single handedly look after the public distribution system in the whole country as this requires a lot of human and financial investments. we suggest to employee different companies , each for every zone , which should be change after a particular period of time, say for 5years.thus, this will increase the efficiency and effectiveness of the work.

CSR

Csr or Corporate Social Responsibility a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. Since its a legal obligation for the companies to initiate csr activities it would lead to a healthy competition where companies would aim at increasing the market share along with their goodwill and in turn make the pds more efficient

CSR OBLIGATI

ON COMPLET

E

INCREASE IN

GOODWILL

SUBSIDIES

BENEFIT FOR

CORPORATES

+ 3 TIER AUDITING BIOMETRIC

3 tier distribution system

Once the stock reaches the states, the further resposibility of setting up and ensuring the Fair Price shops so that the target pupulation actually recieves its deserved benefits is in the hands of the FPS Dealers. For this purpose we propose to Set up these shops under the management of the following groups.

areas

cities Resident welfare associations

towns SHGs

villages Gram panchayats

AUDITING AND CONTROL To ensure the smooth working of the PDS an auditing and control committee needs to be formed from the opposition party, this would ensure fair decisions incase any sort of leakages or problems are discovered. Hence, any sort of shuffling and mismanagement of accounts will be found out easily.

BIOMETRIC CARDS As a lot of indians move from one city to another, the cards must be standardised and universally acceptable in the country. One common card should be issued which can be used nationally to purchase the food commodities in any state.

+ IMPACT

PDS

BIOMETRIC CARDS

PRIVATIZATION

CSR

AUDITING AND CONTROL

ZONING

3- TIER SYSTEM

+ Impact

IMPACT OF PRIVATISATION • Since there will be availability of more resources which

would imply more efficiency, better and innovative technology, hence helps in reducing costs.

Infrastructural Impovements

IMPACT OF ZONING • It helps the states become self sufficient.

• Simple channels of distribution. • Fall in transportation cost.

• Timely delivery of the food authorities.

IMPACT OF AUDITING AND CONTROL • Transparency in the system

• Reduces corruption • Any leakage in the budget can be traced easily • Constant monitoring on the Government's

functioniung.

BIOMETRIC CARDS • Universal Accessibility and Acceptability

• Centralized updated Data

• Simplifies the transactions.

3 TIER SYSTEM • Delegation of responsibility and authority.

• Target Population. • Easier procurement., • Better Management

CORPORATE SOCIAL RESPONSIBILITY

• Legal obligation in India • Responsibility of Corporates • Beneficial to Corporates.

• Reduces the Burden on the Government. • Payback mechanism.

+ CHALLENGES AND RISKS

MITIGATION FACTORS

CONCEPT RISKS

•Corporates do not see the viability of funding this model.

•The opposition party responsible for the audits may be

manipulative and use the information for its own benefit.

•Funding from the government and

other sources.

•In order to avoid any such

misinterpretation by the

opposition,the government can

make some relaxation in its policies

which could be beneficial for the

opposition .

IMPLEMENTATION RISKS

•The warehouses may not stand any natural calamity

which could lead to the loss of most of the stock stored.

•The cost of mobile vans being used for the distribution

purposes would increase if the fuel prices go up.

•The construction of these storage houses

should be done with the best available

material and there should always be buffer

stock to survive any such calamity.

+ References

WEBSITES REFERRED

PDSPORTAL.NIC.IN

PDSTECH.COM

BOOKS REFERRED

INDIAN PUBLIC DISTRIBUTION SYSTEM

POLITICAL ECONOMY OF PUBLIC DISTRIBUTION SYSTEM IN INDIA

INNOVATIVE IDEAS AND PROPOSED SOLUTIONS, OUR OWN BRAINS.