1388728622~~tpds thematic note

8/10/2019 1388728622~~TPDS Thematic Note

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Functioning of the

Public Distribution System

An Analytical Report

Sakshi Balani

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December 2013

Public Distribution System and Food Security

During September 2013, Parliament passed the National Food Security Act (NFSA, 2013! "he statesha#e $le%ibility to tailor "PDS according to their o&n priorities! "his is demonstrated in states indi$$erent &ays! "amil Nadu implements a uni#ersal PDS, such that e#ery household is entitled tosubsidised $ood grains! States such as 'hhattisgarh and adhya Pradesh ha#e implemented )"measures to streamline "PDS, through the digitisation o$ ration cards, the use o$ *PS trac+ing o$deli#ery, and the use o$ SS based monitoring by citiens!

b!ecti"e

Back#en$process

%hallenges

&ssues

Reforms to

'PDS

NFSA see+s to ma+e the right to $ood a legal entitlement by pro#iding subsidised $ood grains to

nearly t&o-thirds o$ the population! "he Act relies on the e%isting "argeted Public DistributionSystem ("PDS mechanism to deli#er these entitlements! "his note describes the $unctioning o$ thee%isting "PDS mechanism and the role played by the centre and states! )t also e%plores challenges inthe e$$ecti#e implementation o$ "PDS and alternati#es to re$orm the e%isting machinery!

"he e%isting "PDS operates through a multi-le#el process in &hich the centre and states shareresponsibilities! "he centre is responsible $or procuring or buying $ood grains, such as &heat andrice, $rom $armers at a minimum support price! )t also allocates the grains to each state on the basiso$ a $ormula! .ithin the total number o$ poor in each state, state go#ernments are responsible $oridenti$ying eligible households! "he centre transports the grains to the central depots in each state!A$ter that, each state go#ernment is responsible $or deli#ering the allocated $ood grains $rom thesedepots to each ration shop! "he ration shop is the end point at &hich bene$iciaries buy their $ood

grains entitlement!

Analyses o$ "PDS ha#e re#ealed se#eral gaps in implementation! "hese challenges pertain to theinaccurate identi$ication o$ households and a lea+ing deli#ery system! /%pert studies ha#e sho&nthat PDS su$$ers $rom nearly 1 error o$ e%clusion and 2 inclusion o$ bene$iciaries, i!e! themisclassi$ication o$ the poor as non-poor and #ice #ersa! Another challenge is the lea+age o$ $oodgrains during transportation to the ration shop and $rom the ration shop itsel$ into the open mar+et!

"here are other issues to consider &ith regard to trends in procurement #is--#is production o$ $oodgrains! As recent data sho&, the central go#ernment procures about a third o$ the 4uantity o$ cereals

produced domestically! 5o&e#er, the amount slated $or procurement is e%pected to increase under

the Act, raising concerns regarding the sustainability o$ such a $ood deli#ery mechanism! "here arealso concerns regarding the $inancial $easibility o$ such a system! "he centre bears a large $inancialburden, the $ood subsidy, because the cost o$ procuring and deli#ering $ood grains is about si% timesits sale price! )t is anticipated that the $ood subsidy &ill rise steadily due to the increased

procurement o$ grains under the Act, related costs and other $actors! Furthermore, a per$ormanceaudit by the 'omptroller and Auditor *eneral has re#ealed a serious short$all in the go#ernment sstorage capacity! *i#en the increasing procurement and incidents o$ rotting $ood grains, the lac+ o$ade4uate co#ered storage is bound to be a cause $or concern!

Despite the e%istence o$ these challenges, se#eral states ha#e implemented re$orms to address gaps in

implementation! )t is important to note that &hile the centre plays a big role in implementing "PDS,

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6ther alternati#es to "PDS include cash trans$ers and $ood coupons! 7ene$iciaries &ould directly beAlternati"es gi#en either cash or coupons &hich can be e%changed $or $ood grains! "here are se#eralarguments to'PDS both in $a#our and against the e$$ecti#eness o$ such measures! /$$orts ha#e been made tointroduce cash trans$ers $or #arious schemes &ith the 8ni4ue )denti$ication Number as a &ay to impro#e

identi$ication and pre#ent lea+age o$ subsidy!

)ndia s Public Distribution System (PDS is the largest distribution net&or+ o$ its +ind in the &orld!PDS &as introduced around .orld .ar )) as a &ar-time rationing measure! 7e$ore the 190s,distribution through PDS &as generally dependant on imports o$ $ood grains! )t &as e%panded in the190s as a response to the $ood shortages o$ the time: subse4uently, the go#ernment set up theAgriculture Prices 'ommission and the Food 'orporation o$ )ndia to impro#e domestic procurementand storage o$ $ood grains $or PDS! 7y the 19;0s, PDS had e#ol#ed into a uni#ersal scheme $or thedistribution o$ subsidised $ood! )n the 1990s, the scheme &as re#amped to impro#e access o$ $oodgrains to people in hilly and inaccessible areas, and to target the poor!

Subse4uently, in 199;, the go#ernment launched the "argeted Public Distribution System ("PDS, &itha $ocus on the poor! "PDS aims to pro#ide subsidised $ood and $uel to the poor through a net&or+ o$ration shops! Food grains such as rice and &heat that are pro#ided under "PDS are procured $rom$armers, allocated to states and deli#ered to the ration shop &here the bene$iciary buys his entitlement!"he centre and states share the responsibilities o$ identi$ying the poor, procuring grains and deli#ering$ood grains to bene$iciaries!

)n September 2013, Parliament enacted the National Food Security Act, 2013! "he Act relies largelyon the e%isting "PDS to deli#er $ood grains as legal entitlements to poor households! "his mar+s ashi$t by ma+ing the right to $ood a


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Essential Commodities Act and PDS (Control) Order

"PDS is administered under the Public Distribution System ('ontrol 6rder 2001,1noti$ied under the/ssential 'ommodities Act, 19 (/'A!2 "he /'A regulates the production, supply, and distributiono$ essential commodities including edible oils, $ood crops such as &heat, rice, and sugar, amongothers! )t regulates prices, culti#ation and distribution o$ essential commodities!

"he PDS ('ontrol 6rder, 2001 speci$ies the $rame&or+ $or the implementation o$ "PDS! )t highlights+ey aspects o$ the scheme including the method o$ identi$ication o$ bene$iciaries, the issue o$ $oodgrains, and the mechanism $or distribution o$ $ood grains $rom the centre to states!

PC! vs.nion of "ndia# $001

)n 2001, the People s 8nion $or 'i#il =iberties (P8'= $iled a &rit petition in the Supreme 'ourtcontending that the >right to $ood? is essential to the right to li$e as pro#ided in Article 21 o$ the'onstitution! During the ongoing litigation, the 'ourt has issued se#eral interim orders, including theimplementation o$ eight central schemes as legal entitlements!3 "hese include PDS, Antyodaya Anna@o


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/ligible bene$iciaries are entitled to subsidised $ood grains such as &heat and rice! States ha#e thediscretion to pro#ide other commodities such as sugar, +erosene, and $orti$ied atta under "PDS! "able2 indicates the entitlements across categories!

Table $: %'mber of beneficiaries and entitlements

Category Number of beneficiaries (crorefamilies)

Entitlement of foodgrains(kg/family)

AA "/4. . g

2PL 4/09 . g

APL 11/" 1 3 . g

Total 1/04

SourcesC 8nstarred uestion No! 2, =o+ Sabha, inistry o$ 'onsumer A$$airs, Food and Public Distribution, Ans&ered on February 2, 2013:Department o$ Food and Public Distribution: PS!

Process for identification of eliible -o'se-olds

"he centre and states identi$y eligible 7P= households through a detailed process, as seen in "able 3!

Table 3: Process for identification of *P! families

Autority !ole Details,ational Sample

Survey

&rganisation

%onducts sample survey o$ consumer

e5penditure every $ive years

%onsumer e5penditure is the e5penditure o$ a

household on some 6asic goods and services/ The

e5penditure on this 6aset o$ goods is the 6asis $or the

poverty line

Planning

%ommission

stimates state3wise poverty8 i/e/8 the

num6er o$ people 6elow the poverty

line

(ses ,SS& household e5penditure data

%entral

governmentAllocates $ood grains to each state6ased on state3wise poverty estimateso$ Planning %ommission andpopulation pro!ections o$ the

:egistrar 'eneral o$ )ndia as o$ ;arch

"000

The num6er o$ 2PL $amilies has 6een calculated using

199.394 poverty estimates 6y Planning %ommission/

This num6er has not 6een revised despite the release

o$ new poverty estimates 6y the Planning %ommission

in "00430 and "01131"

;inistry o$ :ural

Development7%omes out with criteria $or inclusionand

e5clusion $rom 2PL list as part o$ its

2PL %ensus

%riteria $or classi$ication o$ 2PL $amilies8 as per 2PL

%ensus "00"8 include parameters lie si


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SourcesC e#ie& o$ /%pert *roup to e#ie& the ethodology $or /stimation o$Po#erty, Planning 'ommission, 2009: Press Note on Po#erty /stimates, 2011 G12, Planning 'ommission, 2013: PS!

Management of food grains for TPDS

"he central and state go#ernments share responsibilities in order to pro#ide $ood grains to the

identi$ied bene$iciaries! "he centre procures $ood grains $rom $armers at a minimum support price(SP and sells it to states at central issue prices! )t is responsible $or transporting the grains togodo&ns in each state! States bear the responsibility o$ transporting $ood grains $rom these godo&nsto each $air price shop (ration shop, &here the bene$iciary buys the $ood grains at the lo&er centralissue price! any states $urther subsidise the price o$ $ood grains be$ore selling it to bene$iciaries!

"he Food 'orporation o$ )ndia (F') is the nodal agency at the centre that is responsible $ortransporting $ood grains to the state godo&ns! Speci$ically, F') is responsible $orC (i procuring grainsat the SP $rom $armers, (ii maintaining operational and bu$$er stoc+s o$ grains to ensure $oodsecurity, (iii allocating grains to states, (i# distributing and transporting grains to the state depots, and(# selling the grains to states at the central issue price to be e#entually passed on to the bene$iciaries!/ach stage o$ this process is discussed belo&!

Proc'rement of food rains from farmers

"he $ood grains pro#ided to bene$iciaries under "PDS are procured $rom $armers at SP! "he SP isthe price at &hich the F') purchases the crop directly $rom $armers: typically the SP is higher thanthe mar+et price! "his is intended to pro#ide price support to $armers and incenti#ise production!

'urrently procurement is carried out in t&o &aysC (i centralised procurement, and (ii decentralisedprocurement! 'entralised procurement is carried out by the F'), &here F') buys crops directly $rom$armers! Decentralised procurement is a central scheme under &hich 10 statesE8nion "erritories (8"s

procure $ood grains $or the central pool at SP on behal$ o$ F')! "he scheme &as launched toencourage local procurement o$ $ood grains and minimise e%penditure incurred &hen transportinggrains $rom surplus to de$icit states o#er long distances! "hese states directly store and distribute thegrains to bene$iciaries in the state! Any surplus stoc+ o#er the state s re4uirement must be handedo#er to F')! )n case o$ a short$all in procurement against an allocation made by the centre, F') meetsthe de$icit out o$ the central pool!

"he centre procures and stores $ood grains toC (i meet the prescribed minimum bu$$er stoc+ norms $or$ood security, (ii release $ood grains under "PDS on a monthly basis, (iii meet emergency situationsarising out o$ une%pected crop $ailures, natural disasters, etc!, and (i# sell through the 6pen ar+etSale Scheme (6SS!10 "he central go#ernment introduced the 6pen ar+et Sale Scheme (6SS in1993, to sell $ood grains in the open mar+et: this &as intended to augment the supply o$ grains tomoderate or stabilise open mar+et prices!

Storae of food rains

Apart $rom the $ood grains re4uirement $or immediate distribution under "PDS, the centralgo#ernment maintains minimum bu$$er reser#es o$ $ood stoc+s $or emergencies! "he $ood grains

procured $or "PDS and other contingencies are maintained and stored as the central pool stoc+! F') isthe main go#ernment agency entrusted &ith the storage o$ $ood grains in the central pool! According

to the storage guidelines o$ the F'), $ood grains are normally stored in co#ered godo&ns, silos, and inthe open, re$erred to as 'o#ered and Plinth ('AP!11 5o&e#er, F') s o&n storage capacity has beeninsu$$icient to accommodate the central pool stoc+ o$ $ood grains! As a result, F') hires space $rom#arious agencies such as the central and state &arehousing corporations, state go#ernment agenciesand pri#ate parties! )n an e#aluation o$ the storage management o$ $ood grains by F'), the'omptroller and Auditor *eneral ('A* noted that there is sub-optimum utilisation o$ the e%istingstorage capacity a#ailable &ith F') and states!10

'AP storage in#ol#es storage on ele#ated plinths &ith polythene co#ers specially made $or this purpose!Normally, 'AP storage capacity should only be resorted to $or storing $ood grains during pea+procurement seasons! Subse4uent storage should be in the co#ered godo&ns, as storage in 'AP $orlong duration e%poses $ood grains to the ris+ o$ deterioration in 4uality!Allocation of food rains to states

"he central go#ernment allocates $ood grains $rom the central pool to the state go#ernments $ordistribution to 7P=, AA@ and AP= $amilies! Allocation $or 7P= and AA@ $amilies is done on the


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basis o$ the number o$ identi$ied households! 6n the other hand, allocation $or AP= $amilies is madeon the basis o$C (i the a#ailability o$ $ood grains stoc+s in the central pool, and (ii the past o$$ta+e(li$ting o$ $ood grains by a state $rom the central pool! *i#en the $ood grains stoc+s in F'), thecentre has the discretion to allocate more grains to states on an ad-hoc basis! )n the past, ad-hocallocations ha#e been pro#ided in the e#ent o$ $loods, droughts, and $esti#als, etc!

Distrib'tion of food rains to beneficiaries"he responsibility o$ distributing $ood grains is shared bet&een the centre and states! "he centre,speci$ically F'), is responsible $or the inter-state transport o$ $ood grains $rom procuring to consumingstates, as &ell as deli#ering grains to the state godo&ns! 6nce F') transports grains to the statedepots, distribution o$ $ood grains to end consumers is the responsibility o$ state go#ernments!

6n receipt o$ $ood grains, states allocate the grains to each district and $urther to each Fair Price Shop(FPS: ration shop &ithin the $irst &ee+ o$ the month! State go#ernments are responsible $or transporting$ood grains $rom the state godo&ns to the doorstep o$ each FPS in the state! Across the country, $oodgrains are distributed to a net&or+ o$ around !13 la+h FPSs!12 7ene$iciaries buy their monthly $oodgrains entitlements at subsidised prices $rom these ration shops!

!icensin of fair price s-ops

Fair price shops or ration shops $orm the last mile deli#ery o$ the "PDS net&or+! ation shops can beo&ned pri#ately, by co-operati#e societies or the go#ernment! "he o&ners o$ ration shops are licensedunder the PDS ('ontrol 6rder, 2001 to sell essential commodities at central issue prices! ation shopo&ners are issued licenses by state go#ernments and ha#e certain responsibilities under the scheme!"hese responsibilities includeC (i sale o$ commodities as per the entitlement o$ ration card holders atthe retail issue prices $i%ed by state go#ernments, (ii maintenance o$ records and the display o$in$ormation such as the list o$ 7P= and AA@ bene$iciaries, entitlements o$ essential commodities,timings o$ shops, and opening and closing stoc+s, and (iii maintenance o$ accounts o$ actualdistribution o$ essential commodities and the balance stoc+ at the end o$ the month to go#ernmento$$icials and the gram panchayat!

Pricin of food rains: SP# C"P and food s'bsid

.hile the centre procures $ood grains at the SP, the price at &hich $ood grains are sold under "PDS

is much lo&er! "he centre sells $ood grains to states at subsidised prices, +no&n as central issue prices!"he $ood subsidy is the di$$erence bet&een the costs incurred by the centre on SP (includingadditional costs and the central issue price!

inim'm s'pport price

As mentioned earlier, the SP is the price at &hich the centre buys $ood grains $rom $armers!"ypically, the SP is higher than the mar+et price and is intended to incenti#ise production! "he SPs$or #arious agricultural commodities are $i%ed by the central go#ernment based on rates recommended

by the 'ommission $or Agricultural 'osts and Prices ('A'P! "he 'A'P considers certain $actorssuch as the cost o$ culti#ation and remunerati#e prices $or $armers on their produce &hile determiningthe SP! "he SPs recommended by the 'A'P are $inally appro#ed by the 'abinet 'ommittee on/conomic A$$airs!

Central iss'e price

.heat and rice are sold by the central go#ernment at uni$orm central issues prices (')P to states andunion territories $or distribution under "PDS! "he issue prices $or $ood grains $or AA@ and 7P=categories ha#e remained constant since 2000 and the ')P o$ AP= categories since 2002! "able depictsthe issue prices $or di$$erent categories under "PDS!Table 2: C"Ps and SPs of rice and -eat (4s56)

!ice ($rade A) %eat

"ear &SP' CP &SP CP

AA 2PL APL AA 2PL APL

"00" /40 ./00 / /.0 /0 "/00 4/1 /10

"01" 1"/0 ./00 / /.0 1./0 "/00 4/1 /10

SourcesC Food 'orporation o$ )ndia: PS!

H"he SP is $or paddy! "he e4ui#alent price o$ rice is about 0 higher!


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"he table indicates that &hile the ')P $or $ood grains ha#e remained constant through the years, the SPhas been increasing! "he di$$erence bet&een the SP (higher than mar+et price and the lo&er ')P isthe $ood subsidy per +g o$ $ood grain!

&ood S'bsid

"he $ood subsidy is the di$$erence bet&een the cost (SP and handling and transportation costs and

the issue price at &hich the bene$iciary buys $ood grains! "he centre reimburses F') and stateagencies &ith the $ood subsidy, since they are responsible $or procurement and selling the procured$ood grains to states at ')P! "he $ood subsidy also includes the bu$$er subsidy, &hich is the cost borne

by F') and states $or maintaining bu$$er stoc+s beyond the prescribed time $rame!

Implementation of TPDS: Issues and analysis

"here are se#eral issues to consider &hile analysing the implementation o$ "PDS, &hich relate to the (iidenti$ication o$ eligible households, (ii trends in procurement #is--#is production o$ $ood grains, (iiistorage space $or $ood grains, (i# $ood subsidy, and (# lea+age o$ $ood grains!

"dentification of beneficiaries

Studies ha#e sho&n that targeting mechanisms such as "PDS are prone to large inclusion and e%clusionerrors!13 "his implies that entitled bene$iciaries are not getting $ood grains &hile those that areineligible are getting undue bene$its! An e%pert group &as set up in 2009 to ad#ise the inistry o$ural De#elopment on the methodology $or conducting the 7P= census! )t estimated that about 1 o$the eligible population &as e%cluded $rom the 7P= list &hile 2 o$ non-poor households &ereincluded in the 7P= list! "able categorises states according to #arying le#els o$ errors o$ e%clusion(o$ 7P= $amilies! "able 19 in the Anne%ure uses three indicators to demonstrate the state-&ise#ariation in inclusion and e%clusion errors!

Table 7: Cateorisation of states accordin to -i- and lo e8cl'sion of *P! families from TPDS

Low e5clusion >less than "0?@ Andhra Pradesh8 imachal Pradesh8 ;adhya Pradesh8 Pun!a68 :a!asthan8 Tamil

,adu

igh e5clusion >more than "0?@ Assam8 2ihar8 'u!arat8 aryana8 Barnataa8 ;aharashtra8 &disha8 (ttar Pradesh8

Cest 2engal

SourceC >Per$ormance /#aluation o$ "argeted Public Distribution System?, Planning 'ommission, 200!

Another indicator o$ inaccurate classi$ication o$ bene$iciaries is the e%istence o$ ghost cards in se#eralstates! I*host cards are cards made in the name o$ non-e%istent people! "he e%istence o$ ghostcards indicates that grains are di#erted $rom deser#ing households into the open mar+et! "able ;sho&s states grouped according to the le#el o$ lea+age o$ grains due to the e%istence o$ ghost cards!

Table : !ea6ae t-ro'- -ost cards

;oderate Leaage >less than 10?@ Andhra Pradesh8 aryana8 Berala8 Pun!a68 :a!asthan8 Tamil ,adu

igh Leaage >10? 3 .0?@ 2ihar8 'u!arat8 Barnataa8 ;aharashtra8 &disha8 (ttar Pradesh8

Cest 2engal

ery igh Leaage >more than .0?@ Assam8 imachal Pradesh8 ;adhya Pradesh


Trends in proc'rement /is/is prod'ction

8nder "PDS, nearly ; o$ the population is entitled to $ood grains (assuming 90 crore bene$iciaries:"able 1! "his has rami$ications $or the procurement o$ $ood grains by the centre and states!According to current trends, the go#ernment procures nearly one-third o$ the cereals production, &hichamounts to almost hal$ o$ the mar+eted surplus (total production minus capti#e consumption by$armer o$ &heat and rice!1B 6#er the last $e& years, the procurement o$ $ood grains has been

increasing steadily &ith a 4uantity o$ ;0 million tonnes in 2012-13, comprising nearly 3 o$

;


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production! )n se#eral states such as Pun


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4isin food s'bsid

"he $ood subsidy, the di$$erence bet&een the cost o$ procuring $ood grains and the price at &hich theyare issued to bene$iciaries under "PDS, is borne by the central go#ernment! "he $ood subsidy hasincreased o#er the years, ha#ing more than 4uadrupled $rom s 21,200 crore in 2002-03 to s ,000crore in 2012-13! "he $actors that contribute to the rising $ood subsidy areC (i record procurements in

recent years, as discussed abo#e, (ii increasing costs o$ buying (at SP and handling $ood grains, and(iii a stagnant ')P!

"he cost o$ handling $ood grains (SP and other costs has increased due to rising costs o$ productionand increasing costs $or handling and distributing $ood grains!1B "he cost o$ producing rice and &heathas gone up primarily due to sharply rising input costs such as labour and energy costs, including$ertilisers! 'osts o$ handling $ood grains or procurement incidentals, &hich include cost o$ gunny

bags, and charges to state go#ernments $or storage and interest, etc!, ha#e also been increasing! )naddition, since procurement is concentrated in a $e& states, the cost o$ distributing these $ood grains toother states has also increased!1B "hese combined $actors contribute to the rising costs o$ procurementand ultimately add to the $ood subsidy bill! )n contrast, the ')P o$ cereals (the price at &hich $oodgrains are sold to bene$iciaries under "PDS such as rice and &heat ha#e remained constant since2002! "he &idening di$$erence bet&een the rising cost o$ procuring and handling $ood grains and theconstant issue price has been a ma


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Act are lo&er than the current le#el! "he subse4uent gro&th &ill be dri#en by t&o $actors! Since, theproportion o$ the population co#ered is constant, the number o$ eligible bene$iciaries &ill increase&ith the population gro&th! "his &ill result in an increase in the 4uantity o$ $ood grains to be

procured! Second, the SP &ill tend to rise &ith in$lation in input prices: i$ the issue prices are notre#ised up&ard, the subsidy per +g o$ grains &ill increase! Figure 3 demonstrates the rise in $oodsubsidy as a percentage o$ *DP!

J

"otal $ood subsidy

e%penditure

K $ood subsidyEperson %

o$

pop

no! o$

bene$iciaries

!Lper +g subsidy M(SP etc! - ')P % no! o$

+gEpersonL % J

! co#er ed %

total pop

)ncreases &ith

time

constan

t

constant increases &ith

time

&i're 3: &ood s'bsid as a < of =DP ($003$01$)

Food subsidy, as a percentage o$ *DP, hasincreased $rom 0! in 200;-0 to 0! in2012-13!

"he rising $ood subsidy is due to the constant')P o$ $ood grains and an increasing SP!

)n real terms, the subsidy per person hasincreased o#er this duration!

SourceC )ndia 7udget: 6SP): PS!

Cost estimates of implementin t-e Act

.hen the 7ill &as introduced in Parliament in 2011, the go#ernment estimated the annual cost o$implementation at about s 9,000 crore! )n its representation to the Standing 'ommittee, the centralgo#ernment estimated that the actual e%penditure or the $ood subsidy &ould be closer to s 1,12,000crore!1 5o&e#er, other e%perts such as the 'A'P ha#e estimated an e%penditure o$ about s la+hcrore $or the ne%t three years!1 "he Food inistry has been reported saying that the total cost o$implementation &ill be s 1!2 la+h crore!1; "able 10 compares cost estimates by #arious e%perts!

Table 10: Cost estimates of implementin t-e %ational &ood Sec'rit Act# $013

SourcesC National Food Security Act, 2013: Standing 'ommittee on Food, 'onsumer A$$airs and Public Distribution: 'ommission $orAgricultural 'osts and Prices: PS!

S-ortfall in storae capacit it- &C" aainst t-e central pool stoc6

A$ter obligations under "PDS ha#e been met, the $ood grains that ha#e been procured need to bestored as a bu$$er stoc+! "he go#ernment also aims to create storage capacity $or procured $ood grainsin procuring states and trans$ers $ood grains $rom surplus regions to de$icit regions! .hile there has

been a sharp hi+e in procurement $rom 19! million tonnes in 200 to 2!0 million tonnes in 2012,F') s storage capacity (both o&ned and hired has not increased commensurate to the gro&th in

procurement!19 )n its report, the 'A* $ound that $rom 200-09 on&ards, due to the increase inprocurement o$ $ood grains, there &as a se#ere strain on storage capacity a#ailable in the country $or

10

National ,ood Security Act- .01 Commission for Agricultural Costs and Prices02

98000= 18"8000 "8418".= "81784


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the central pool stoc+!10 Figure B sho&s the increasing $ood grains stoc+s and the slo&er increase inF') storage capacity!&i're .: Total food rains stoc6s and a/ailable&C" storae capacit in million tonnes ($003$013)

.ith the increasing $ood grains stoc+s,F') s storage gap increased $rom !9

million tonnes in 200;-0 to 33!2 milliontonnes in 2011-12!

As o$ 2012, $ood grains stoc+s o$ rice and&heat &ere at 0! ", nearly double thetotal storage capacity a#ailable &ith F')!

"his implies that a certain amount o$ grainsis being stored in unscienti$ic

storage, leading to the rotting o$ $ood

grains!

SourcesC Food 'orporation o$ )ndia: pdsportal!nic!in: PS

"he 'A* audit also $ound that the o&ned storage capacity &ith F') remained stagnant, ranging $rom1!1 to 1! million tonnes during the period 200-0; to 2011-12 and &as not enough to accommodatethe minimum bu$$er stoc+ o$ 21!2 to 31!9 million tonnes!10 Oey $indings $rom the 'A* audit &ereC

Imbalances in availability of storage capacity across states: "here is an imbalance in thea#ailability o$ storage capacity across regions! 6n the one hand, there is a shortage o$ space inconsuming states, such as a


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SourcesC >/conomics o$ $ood grains management in )ndia?, inistryo$ Finance, September 2010: PS!

!ea6ae of food rains

"he $igure indicates that the margin o$stoc+s abo#e the minimum bu$$er stoc+shas been increasing o#er the years! "his

could lead to the rotting or hoarding o$ $oodgrains!

"he holding o$ stoc+s abo#e the minimumbu$$er norms also ad#ersely impacts priceso$ grains in the open mar+et! "his a$$ects

poor households, &hich buy the remainingre4uirement o$ $ood grains $rom the openmar+et!

"PDS su$$ers $rom large lea+ages o$ $ood grains during transportation to and $rom ration shops intothe open mar+et! )n an e#aluation o$ "PDS, the Planning 'ommission $ound 3 lea+age o$ PDSrice and &heat at the all-)ndia le#el!22 "he $ollo&ing tables pro#ide data on states &ith #arying

lea+age o$ $ood grains!

Table 11: O/erall lea6ae of food rains across states

Low Leaage >less than "?@ Andhra Pradesh8 Berala8 &rissa8 Tamil ,adu8 Cest 2engal

igh Leaage >"? 3 0?@ Assam8 'u!arat8 imachal Pradesh8 Barnataa8 ;aharashtra8

:a!asthan

ery igh Leaage >0? 3 7?@ aryana8 ;adhya Pradesh8 (ttar Pradesh

A6normal Leaage >more than 7?@ 2ihar8 Pun!a6


Table 1$: !ea6ae of food rains at t-e fair price s-op

ery Low Leaage >less than 10?@ Assam8 imachal Pradesh8 ;adhya Pradesh8 &disha8 Tamil ,adu8

Cest 2engal;oderate Leaage >10? 3 "?@ Andhra Pradesh8 'u!arat8 Barnataa8 Berala8 ;aharashtra

igh Leaage >"? 3 0?@ :a!asthan8 (ttar Pradesh

ery igh Leaage >more than 0?@ 2ihar8 aryana8 Pun!a6

SourceC Per$ormance /#aluation o$ "argeted Public Distribution System?, Planning 'ommission, 200!

"he 'A'P obser#ed high lea+age o$ $ood grains in 200B-0 and 2009-10, the t&o years $or &hichNational Sample Sur#ey data on consumption $rom "PDS are a#ailable! )n 2009-10, o$ a totalallocation o$ B;! million tonnes, B2!B million tonnes &ere li$ted by states! 5o&e#er, 'A'P notedthat only 2!3 million tonnes &ere actually consumed, implying a lea+age o$ B0!B percent o$ $oodgrains $rom the "PDS net&or+! =ea+age also decreased $rom B!1 per cent in 200B-0 to B0 per centin 2009-10! "able 13, reproduced $rom the 'A'P discussion paper, indicates the allocation, o$$ta+eand consumption o$ grains in 200B-0 and 2009-10!

Table 13: Offta6e compared to cons'mption of food rains (all "ndia) in million tonnes

Cereal "ear Allocation 3fftakeConsum4tion

as 4er NSS+eakage

+eakage

(in 5)

:ice

"00430

"0093

10

.4/

"4/

1/

"./4

9/9

17/

/

/9

.9/

"/1

Cheat

"00430

"0093

10

.7/.

""/

1"/9

1/9

./

7/

9/.

11/"

7"/4

9/1

12


14/24

Total >:ice E Cheat@

"00430

"0093

10

71/7

47/

"9/4

4"/4

1./

"/.

1/9

17/1

4/1

40/4

SourceC 'ommission $or Agricultural 'osts and Prices!

Mechanisms to strengthen TPDS

e$orms ha#e been proposed to ma+e the "PDS more e$$ecti#e! a'PS@ technology to trac

movement o$ trucs carrying $ood grains $rom state depots

to -PS

%hhattisgarh8 Tamil ,adu

S;S 6ased

monitoring

Allows monitoring 6y citi


15/24

(se o$ we636ased

citisu6sidised@ 'eneral households 3 1 g o$ $ood grains >su6sidised@

Special groups Pregnant women and lactating mothers8 children up to 14 years8 students in hostels and

ashrams8 destitute8 homeless8 migrants8 emergency or disaster a$$ected persons

)mplementing Local authorities shall 6e responsi6le $orI >i@ identi$ication o$ eligi6le households8 >ii@ issuing

ration cards8 >iii@ authorities monitoring and supervision o$ $air price shops8 and >iv@ conducting social

audits o$ $air price shops/

'rievance )nternal mechanism including call centres8 nodal o$$icers8 etc/ Provision o$ entitlements toeligi6le households shall :edressal 6e noti$ied as services to 6e provided under the %hhattisgarh Pu6lic Service'uarantee Act8 "011

;echanism:e$orms to TPDS )ncludes doorstep delivery o$ grains to ration shops8 leveraging Aadhaar $or targeting o$

6ene$iciaries8 and maintenance o$ adeFuate 6u$$er stocs o$ $ood items

-orce ;a!eure The state government shall not 6e held lia6le $or a lac o$ supply due to war8 $lood8 drought8

$ire8 etc

Alternatives to TPDS

"here are some alternati#es to "PDS, &hich address some problems during implementation! "amil Naduimplements a 8ni#ersal rather than a "argeted PDS! /%perts ha#e noted that PDS could be replaced &ithcash trans$ers or $ood coupons!31 /ach o$ these alternati#es is discussed belo& in detail!

ni/ersal PDS

.hen PDS &as $irst introduced, it &as a uni#ersal entitlement scheme! )n 199;, it &as changed into the"argeted PDS! 8nli+e most states in the country, "amil Nadu retained the 8ni#ersal PDS, pro#idingsubsidised $ood grains to the entire population! 'ertain $eatures o$ the 8ni#ersal PDS in "amil Nadu areanalysed and compared to the current "PDS belo&! 8ni#ersal PDS helps the state a#oid errors intargeting bene$iciaries!

Case st'd: ni/ersal PDS in Tamil %ad'2

1B


16/24

%onclassification of beneficiaries Subsidised PDS commodities are distributed to all residents&ithout classi$ying them into di$$erent categories! According to the ustice .adh&a 'ommittee eport,non-classi$ication helps the state a#oid errors o$ e%clusion o$ eligible and #ulnerable $amilies! 5o&e#er,"N identi$ies AA@ bene$iciaries!Commodities pro/ided 'nder 'ni/ersal PDS ice is distributed at the price o$ e 1E +g to e#eryone,lo&er than the central issue price! Families are not gi#en 3 +g as mandated by the central go#ernment:

rice cardholders get any&here bet&een 12-20 +g rice depending on the number o$ indi#iduals in their$amily!=ro'ps in/ol/ed in t-e distrib'tion of food rains No pri#ate trader is engaged in the PDS acti#ity!ation shops are mainly run by the cooperati#e societies and the "amil Nadu 'i#il Supplies'orporation, the F') counterpart in the state!

Cas- Transfers

"he National Food Security Act, 2013 includes cash trans$ers and $ood coupons as possible alternati#emechanisms to the PDS!2 7ene$iciaries &ould be gi#en either cash or coupons by the state go#ernment,&hich they can e%change $or $ood grains! Such programmes pro#ide cash directly to a target group Gusually poor households! Some potential ad#antages o$ these programmes includeC (i reducedadministrati#e costs, (ii e%panded choices $or bene$iciaries, and (iii competiti#e pricing among grocery

stores!5o&e#er, cash trans$ers may e%pose recipients to price $luctuation, i$ they are not $re4uently ad


17/24

%ash trans$ers %ash in the hands o$ poor increases theirchoices

%ash may relieve $inancial constraints $aced6y the poor8 mae it possi6le to $orm thri$tsocieties and access credit

Administrative costs o$ cash trans$erprogrammes may 6e signi$icantly lesser thanthat o$ other schemes

Potential $or maing electronic trans$er

%ash can 6e used to 6uy non3$ood items

;ay e5pose recipients to price volatility andin$lation

There is poor access to 6ans and post o$$icesin some areas

-ood coupons ousehold is given the $reedom to choosewhere it 6uys $ood

)ncreases incentive $or competitive prices andassured Fuality o$ $ood grains among PDSstores

:ation shops get $ull price $or $ood grains $rom

the poorH no incentive to turn the poor away

-ood coupons are not inde5ed $or in$lationH maye5pose recipients to in$lation

Di$$icult to administerH there have nown to 6e

delays in issuing $ood coupons and reim6ursing

shops

SourcesC See /ndnote 31: PS!

Changes in TPDS with Food Security Act, 2013

"he National Food Security Act, 2013 see+s to ma+e the right to $ood a statutory right! "he Act

implements some +ey changes to the e%isting "PDS, as can be seen in "able 1!

Table 17: Comparison of e8istin TPDS it- t-e %ational &ood Sec'rit Act

Provision Current TPDS National ,ood Security Act .01

)mplication $or #right to

$ood

Set up under administrative orderH no legal

6acing

Provides statutory 6acing $or right to

$ood

%overage 90/" crore 6ene$iciaries J 1/04 crore$amilies 5

>average no/ o$ mem6ers in a $amily@

(p to 7? o$ rural and up to 0? o$

ur6an population8 a6out 1/.4 crore

6ene$iciaries."

%ategories AA8 2PL8 and APL AA8 priority8 and e5cluded

ntitlements per category 2PL and AAI . gG$amilyGmonth

APLI 1 = . gG$amilyGmonth

PriorityI gGpersonGmonth

AAI . gG$amilyGmonthPrices o$ $ood3 grains AAI :s .Gg $or rice8 :s "Gg $or wheat8

and :e

1Gg $or coarse grains

&ther categoriesI di$$ers across states

All categoriesI

:s .Gg $or rice8 :s "Gg $or wheat8and :e

1Gg $or coarse grains

)denti$ication o$

6ene$iciaries

%entreI

releases state3wise estimates o$population to 6e covered under TPDS

creates criteria $or identi$ication

StatesI )denti$y eligi6le households

%entreI releases state3wise

estimates o$ population to 6e

covered under Act StatesI

create criteria $or

identi$ication

identi$y eligi6le households

1


18/24

%entre3state responsi6ility %entreI procurementH state3wise allocationHtransport o$ grains up to state depotsHstorage

StatesI delivery o$ grains $rom state depots

to ration shop to 6ene$iciary

Same as current system with someadditions

%entreI provides $ood securityallowance to states to pass on to6ene$iciaries

%entre and statesI not responsi6le

$or $ailure to supply $ood grainsduring $orce ma!eure conditions8 e/g/8

war8 $lood8 drought

'rievance redressal

mechanism

State governments responsi6le $or ensuring

monitoringH vigilance committees to 6e set

up at state8 district8 6loc and ration shop

levels

Appoints district grievance redressal

o$$icersH esta6lishes State -ood

%ommissionsH and vigilance

committees at state8 district8 6loc

and ration shop levelsSourcesC PDS ('ontrol 6rder, 2001: National Food Security Act, 2013: PS!

Other issues

inim'm S'pport Price: "mplications for aric'lt'ral prod'ction and food prices

"his note e%amines the $unctioning o$ the public distribution system, and touches upon the relatedissue o$ SP and procurement o$ $ood grains! "here are some issues related to SP that ha#e not

been e%plored and re4uire $urther study! "hese include the e$$ects o$ SP on production o$ noncerealcrops and implications $or &ater resources!

"he current policy holds $ood grains as the +ey to $ood and nutrition security! "he Act s $ocus on riceand &heat goes against recent trends &hich sho& that )ndians are gradually di#ersi$ying their diet to

protein-rich $oods such as dairy, eggs and poultry, as &ell as $ruits and #egetables!1B "he increasedprocurement re4uirements under the Act &ill ser#e to incenti#ise production o$ cereals li+e rice and&heat, at the e%clusion o$ other crops such as pulses, $ruits and #egetables! )n turn, this &ould a$$ect

prices o$ these commodities in the mar+et!

Another related issue that re4uires $urther e%amination is the en#ironmental sustainability o$ SP andprocurement o$ cereals! "he o#er-emphasis on attaining sel$-su$$iciency and a surplus in $ood grains,&hich are &ater-intensi#e, has been $ound to be en#ironmentally unsustainable!33 Procuring states suchas Pun


19/24

Table 1: &ood sec'rit sc-emes in some states

State Centre (Pro4osed) *iar16 Cattisgar.7 $u8arat19 :aryana1; . g o$ $ood

grains >at :s .Gg $or

rice8 :s "Gg $or

wheat8 :e 1Gg $or

coarse grains@

AA"> 14 g o$wheat and "1 go$ rice >at :s "and :s

. respectively@

AA"> . g o$ $ood

grains8 " g o$ iodised

salt8 " g o$ 6lac gram8

and " g o$ pulses >at

:e 18 $ree8 :s 8 and :s

10 respectively@

AA"> 1/7 g o$$orti$ied atta and 1 go$ rice >at :s

.G6ag and :s .

respectively@

AA"> . g o$ wheat8"/ g o$ sugar and ltr o$ erosene >at :s"8 :s

1. and :s 1.

respectively@

AA"> . g o$ rice

and 400 gm o$

sugar >at :e 1

and :s 1.

respectively@

AA"> . g o$wheat and rice and" g o$ sugar/Cheat8 rice andiodised salt >at :e18 :s "8 and :e 1@are provided to

6ene$iciaries o$ the

;uhyamantri

Annapurna o!ana

Priority> g o$ $ood

grainsGpersonGmonth

>at :s .Gg $or rice8

:s "Gg $or wheat8 :e1Gg $or coarse

grains@

*P+> " g >10g o$ wheat8 1g o$ rice@ and 1

g o$ sugar >at:s 8 :s 78

and :s 1.

respectively@

Priority> . g o$ $oodgrains8 " g o$ iodisedsalt8 " g o$ 6lac gram8 "

g o$ pulses >atAA rates@

*P+> 9 g o$ wheat and./ g o$ rice >at :s "and :s . respectively@

State *P+> g o$wheat and " g o$ rice

>at :s and :s

respectively@

*P+> . g o$ wheat8"/ g o$ sugar and ltr o$ erosene >at :s

8 :s1.8 and :s 1.

respectively@

*P+> g o$wheat8

" g o$ rice and

400 gm o$ sugar>at

:s "8 :e 1 and :s

1. respectively@

*P+> "0 g o$

wheat and rice8 "

g o$ rice >at :e 1

$or wheat and :s "$or rice@ and ltr o$

erosene $or non

gas users

Pregnant =omen>

su6!ect to scheme

and maternity

6ene$it o$ :s 8000/

AP+> 1 g o$

wheat8 and rice

>at :s 7 and :s

9 respectively@

$eneral> 1 g o$ $ood

grains >:iceI :s 98 the

price o$ other $ood grains

shall not e5ceed 0? o$

AP+> 10 g o$ wheat >at

:s 7@

AP+> . g o$wheat8 10 g o$rice and " g o$$orti$ied atta >at

:s 78 :s 9 and :s

AP+> g o$

wheat and "34 ltr

o$ erosene

1 "he central go#ernment issues $ood grains to states at a $i%ed rate that has remained constant since 2000! For AA@, the issue prices $or rice and &heat are s 3 and s 2 respecti#ely: $or 7P=,the prices are s ! and s B!1: and $or AP=, s !30 and s !10!


20/24

Cildren> one $ree

mid3day meal

the ;inimum Support

Price@

1" respectively@

1;

Table 1 contin'ed@State Centre &egalaya7 Pun8ab70 !a8astan7. Tamil Nadu71 #ttar Prades77 %est *engal76

+a= / Sceme ,ational -ood

Security Act8 "01.

%entral Schemes %entral schemes

and Atta Dal

Scheme

%entral schemes (niversal PDS %entral Schemes %entral schemes andspecial schemes $or teagarden worers8 tri6alcommunities and 2PLresidents o$

Kunglemahal8 Singur

and Aila

*eneficiaries Priority8 AA8

pregnant women

and lactating

mothersH children

AA8 2PL and APL/ )n

addition8 rice is

provided at discounted

rates to residents o$

S%GST hostels

AA8 2PL8 APL underTPDS and other

economically wea

$amilies

AA8 2PL8 APL/ State

government claims to

cover more 2PL

6ene$iciaries than those

covered 6y the centre

There is no

di$$erentiation

6etween APL and

2PL8 although a

separate AA

category has 6een

created

AA8 2PL and APL AA8 2PL8 APL8 tea

garden worers8

residents o$ Singur and

Aila8 and tri6al

communities o$

Kunglemahal

Ty4e of

entitlement

Cheat8 rice8 and

coarse cereals

:ice8 wheat8 sugar and

erosene

:ice8 wheat8 sugar8

pulses8 and erosene

:ice8 wheat8 sugar8 atta

and erosene

:ice8 sugar8 wheat

and erosene

Cheat8 rice8 sugar8

and erosene

:ice8 wheat8 sugar and

erosene

Entitlements (in

kg/ouseold/mo

nt)

AA">. g o$ $ood

grains >at :s .Gg

$or rice8 :s "Gg $or

wheat8 :e 1Gg $or

coarse grains@

AA"> 13 g o$ wheat8. g o$ rice and 97gm o$ sugar >at :s 378 :s . and :s 1.respectively@/ :uraland ur6an $amiliesreceive

4 and 9 ltr respectively>at

AA"> . g o$ wheat>at

:s "@

Atta Dal Sceme

>which is run inaddition to PDS@ the$ollowingentitlements e5istI" g o$ wheat and

AA"> . g o$ wheat andrice

>at :s " and :s .

respectively@

:ice8 g o$ wheat

>10 g in %hennai

and district

headFuarters@8 " g

o$ sugar and .31 ltr

o$ erosene

>depending on

location@ >at :s 8

AA">1 g o$ wheat8

"0 g o$ rice8 700 gm

o$ sugar >at :s "8 .

and 1./0@8 erosene

. ltr

AA" >per adult@I 70 gmo$ wheat8 1 g o$ rice800 gm o$ sugar and70 = 900 ml o$erosene >at :s "8 :s "8:s

1. and :s 1 31Gltrrespectively@

)n Bolata and


21/24

:s 131Gltr@ "/ g o$ pulses >at:s 4 and :s

"0 respectively@

$ree8 :s 1. and :s

1. 314 respectively@

2idhannagar8

" ltr o$ erosene aresold at

:s 14/9Glitre

Priority> g o$$oodgrainsGpersonGmonth

>at :s .Gg $or rice8

:s "Gg $or wheat8:e 1Gg $or coarse

grains@

*P+> Same as a6ove *P+> . g o$ wheat

>at :s @

*P+> " g o$ wheat8

rice8 00 gm o$ sugar8

10 g o$ atta and "3 ltr

o$ erosene >at :s "8

:s 8 :s 1.8 :s and

:s 14 respectively@

Same as a6ove *P+>1" g o$ rice8

". g o$ wheat 8 700

gm o$ Sugar >at :s

/18 :s 4/ and :s

1./0@ erosene . ltr

*P+> 70 gm o$ wheat81 g o$ rice8 00 gm o$sugar and 70 = 900 mlo$ erosene >at

:s 8 :s "8 :s 1. and:s 1

= 1Gltr respectively@

Pregnant =omen>

su6!ect to scheme

and maternity

6ene$it o$ :s

8000/ Cildren>

one $ree mid3day

meal

AP+> 13 g o$

wheat8 1/1 g o$

rice and 97 gm o$

sugar >at :s 78 :s

10311 and :s 1.314

respectively@/ :ural

and ur6an $amilies

receive 4 and 9 ltr

>at :s 1 =1Gltr@

AP+> . g o$ wheat

>at :s /".@

AP+> . g o$ wheat >at

:s 7@

Same as a6ove AP+>1" g o$ rice8 ".

g o$ wheat >at :s

/4 and :s /0@

erosene . ltr

AP+> 00 gm o$ wheat8"0 gm o$ rice >in selectareas@8 and 70 = 900ml o$ erosene >at :s 78:s 98 and

:s 1 = 1Gltrrespectively@

1


22/24

Anne8're

Tend'l6ar Committee met-odolo for t-e estimation of po/ert

)n 2009, a Planning 'ommission e%pert group, chaired by Suresh "endul+ar, re#ie&ed the methodology $orpo#erty estimation and suggested changes to the &ay po#erty is measured!B )t recommended $our ma


23/24

'u!arat 10/9 4/1 "4/"

aryana 4/4 ."/ 1/"

imachal Pradesh ./. 4/1 1./7

Kammu Bashmir 7/9 /1 17/"

Kharhand ""/1 .1/9 17/0

Barnataa "0/7 9/ ./

Berala 10/0 4/4 "/0

;adhya Pradesh .0/0 41/9 ""/"

;aharashtra 19/" .9/9 1/4

&disha "9/. 4/ "9/4

Pun!a6 1/ 19/ /

:a!asthan /0 "./ 1"/1

Tamil ,adu 9/0 "9/7 1/0

(ttar Pradesh 1/4 ""/9 10/

(ttarahand /1 ./" 1"/0

Cest 2engal 11/" 40/ "0/

All )ndia 19/1 ./0 "0/7

SourceC Planning 'ommission, /le#enth Fi#e @ear Plan, Rolume )), 200: PS!NotesC AA@ re$ers to the Antyodaya Anna @oe$orms in the Public Distribution System and 7etter "argeting o$ Food Subsidies?, .or+ing *roup on e$orms in the Public Distribution

System and 7etter "argeting o$ Food Subsidies during the 12 thPlan Period ('hairpersonC Secretary, Department o$ Food and Public Distribution,Plannning 'ommission, uly 29, 2011, httpCEEplanningcommission!nic!inEaboutusEcommitteeE&r+grp12EppE&gTpds!pd$!

10 >Per$ormance Audit eport on Storage anagement and o#ement o$ Food grains in F')?, 'omptroller and Auditor *eneral o$ )ndia, ay ;,,httpCEEsaiindia!go#!inEenglishEhomeE6urTProductsEAuditTeportE*o#ernmentT.iseEunionTauditErecentTreportsEunionTper$ormanceE2013E'i#ilEeportT;EeportT;!html !

11 >Storage anagement?, Food 'orporation o$ )ndia &ebsite, httpCEE$ci&eb!nic!inEstoragesE#ie&EB!

12 onthly $ood grain bulletin! Department o$ Food and Public Distribution, February 2013, httpCEEd$pd!nic!inE$caminEbulletionEF/7T2013!pd$!13 >eport o$ the /%pert *roup to ad#ise the inistry o$ ural De#elopment on the met hodology $or conducting the 7elo& Po#erty =ine (7P=

'ensus $or 11th Fi#e @ear Plan?, ('hairpersonC Dr! N!'! Sa%ena, August 2009,httpCEErural!nic!inEsitesEdo&nloadsEcircularEeporto$/%pert*roup'haired-Dr!N!'!Sa%ena!pd$!1B >National Food Security 7illC 'hallenges and 6ptions?, 'ommission $or Agricultural 'osts and Prices, Asho+ *ulati, yoti *uFood $or granted?, 7usiness "oday, Sebastian P!"!, N! adha#an, /! Oumar Sharma, arch 3, 2013,httpCEEbusinesstoday!intoday!inEstoryE$ood security-la&-&hat-it-means-$or-go#ernment-$inancesE1E19222!html !

1 >National Food Security 7illC 'hallenges and 6ptions?, 'ommission $or Agricultural 'osts and Prices, Asho+ *ulati, yoti *uecord Foodgrain Procurement and Allocation under PDS: /nd-to-/nd 'omputerisation o$ "PDS: Storage 'apacity Augmented: Prices o$ Sugarand /dible oils remained stable: @ear /nd e#ie& o$ inistry o$ 'onsumer A$$airs, Food and Public Distribution?, Press )n$ormation 7ureau,inistry o$ Food Processing )ndustries, December 2B, 2012!

22
http://consumeraffairs.nic.in/consumer/sites/default/files/userfiles/ecact1955.pdfhttp://consumeraffairs.nic.in/consumer/sites/default/files/userfiles/ecact1955.pdfhttp://rural.nic.in/sites/downloads/programmes-schemes/Poverty%20Studies.pdfhttp://rural.nic.in/sites/downloads/programmes-schemes/Poverty%20Studies.pdfhttp://planningcommission.nic.in/plans/planrel/fiveyr/11th/11_v2/11th_vol2.pdfhttp://planningcommission.nic.in/plans/planrel/fiveyr/11th/11_v2/11th_vol2.pdfhttp://planningcommission.nic.in/aboutus/committee/wrkgrp12/pp/wg_pds.pdfhttp://planningcommission.nic.in/aboutus/committee/wrkgrp12/pp/wg_pds.pdfhttp://planningcommission.nic.in/aboutus/committee/wrkgrp12/pp/wg_pds.pdfhttp://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2013/Civil/Report_7/Report_7.htmlhttp://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2013/Civil/Report_7/Report_7.htmlhttp://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2013/Civil/Report_7/Report_7.htmlhttp://fciweb.nic.in/storages/view/4http://fciweb.nic.in/storages/view/4http://fciweb.nic.in/storages/view/4http://dfpd.nic.in/fcamin/bulletion/FEB_2013.pdfhttp://dfpd.nic.in/fcamin/bulletion/FEB_2013.pdfhttp://dfpd.nic.in/fcamin/bulletion/FEB_2013.pdfhttp://dfpd.nic.in/fcamin/bulletion/FEB_2013.pdfhttp://rural.nic.in/sites/downloads/circular/ReportofExpertGroupChaired-Dr.N.C.Saxena.pdfhttp://rural.nic.in/sites/downloads/circular/ReportofExpertGroupChaired-Dr.N.C.Saxena.pdfhttp://cacp.dacnet.nic.in/NFSB.pdfhttp://cacp.dacnet.nic.in/NFSB.pdfhttp://cacp.dacnet.nic.in/NFSB.pdfhttp://www.prsindia.org/uploads/media/Food%20Security/SC%20Report-Food%20Security%20Bill,%202011.pdfhttp://www.prsindia.org/uploads/media/Food%20Security/SC%20Report-Food%20Security%20Bill,%202011.pdfhttp://articles.economictimes.indiatimes.com/2011-12-17/news/30528849_1_food-subsidy-subsidised-grain-priority-householdshttp://articles.economictimes.indiatimes.com/2011-12-17/news/30528849_1_food-subsidy-subsidised-grain-priority-householdshttp://articles.economictimes.indiatimes.com/2011-12-17/news/30528849_1_food-subsidy-subsidised-grain-priority-householdshttp://businesstoday.intoday.in/story/food-security-law-what-it-means-for-government-finances/1/192252.htmlhttp://businesstoday.intoday.in/story/food-security-law-what-it-means-for-government-finances/1/192252.htmlhttp://cacp.dacnet.nic.in/NFSB.pdfhttp://cacp.dacnet.nic.in/NFSB.pdfhttp://cacp.dacnet.nic.in/NFSB.pdfhttp://consumeraffairs.nic.in/consumer/sites/default/files/userfiles/ecact1955.pdfhttp://rural.nic.in/sites/downloads/programmes-schemes/Poverty%20Studies.pdfhttp://rural.nic.in/sites/downloads/programmes-schemes/Poverty%20Studies.pdfhttp://rural.nic.in/sites/downloads/programmes-schemes/Poverty%20Studies.pdfhttp://rural.nic.in/sites/downloads/programmes-schemes/Poverty%20Studies.pdfhttp://rural.nic.in/sites/downloads/programmes-schemes/Poverty%20Studies.pdfhttp://planningcommission.nic.in/plans/planrel/fiveyr/11th/11_v2/11th_vol2.pdfhttp://planningcommission.nic.in/plans/planrel/fiveyr/11th/11_v2/11th_vol2.pdfhttp://planningcommission.nic.in/aboutus/committee/wrkgrp12/pp/wg_pds.pdfhttp://planningcommission.nic.in/aboutus/committee/wrkgrp12/pp/wg_pds.pdfhttp://planningcommission.nic.in/aboutus/committee/wrkgrp12/pp/wg_pds.pdfhttp://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2013/Civil/Report_7/Report_7.htmlhttp://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2013/Civil/Report_7/Report_7.htmlhttp://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2013/Civil/Report_7/Report_7.htmlhttp://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2013/Civil/Report_7/Report_7.htmlhttp://fciweb.nic.in/storages/view/4http://fciweb.nic.in/storages/view/4http://fciweb.nic.in/storages/view/4http://dfpd.nic.in/fcamin/bulletion/FEB_2013.pdfhttp://dfpd.nic.in/fcamin/bulletion/FEB_2013.pdfhttp://dfpd.nic.in/fcamin/bulletion/FEB_2013.pdfhttp://rural.nic.in/sites/downloads/circular/ReportofExpertGroupChaired-Dr.N.C.Saxena.pdfhttp://rural.nic.in/sites/downloads/circular/ReportofExpertGroupChaired-Dr.N.C.Saxena.pdfhttp://cacp.dacnet.nic.in/NFSB.pdfhttp://cacp.dacnet.nic.in/NFSB.pdfhttp://cacp.dacnet.nic.in/NFSB.pdfhttp://www.prsindia.org/uploads/media/Food%20Security/SC%20Report-Food%20Security%20Bill,%202011.pdfhttp://www.prsindia.org/uploads/media/Food%20Security/SC%20Report-Food%20Security%20Bill,%202011.pdfhttp://articles.economictimes.indiatimes.com/2011-12-17/news/30528849_1_food-subsidy-subsidised-grain-priority-householdshttp://articles.economictimes.indiatimes.com/2011-12-17/news/30528849_1_food-subsidy-subsidised-grain-priority-householdshttp://articles.economictimes.indiatimes.com/2011-12-17/news/30528849_1_food-subsidy-subsidised-grain-priority-householdshttp://businesstoday.intoday.in/story/food-security-law-what-it-means-for-government-finances/1/192252.htmlhttp://businesstoday.intoday.in/story/food-security-law-what-it-means-for-government-finances/1/192252.htmlhttp://businesstoday.intoday.in/story/food-security-law-what-it-means-for-government-finances/1/192252.htmlhttp://businesstoday.intoday.in/story/food-security-law-what-it-means-for-government-finances/1/192252.htmlhttp://businesstoday.intoday.in/story/food-security-law-what-it-means-for-government-finances/1/192252.htmlhttp://cacp.dacnet.nic.in/NFSB.pdfhttp://cacp.dacnet.nic.in/NFSB.pdfhttp://cacp.dacnet.nic.in/NFSB.pdfhttp://consumeraffairs.nic.in/consumer/sites/default/files/userfiles/ecact1955.pdf


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20 )nterim order dated August 12, 2010 in P8'= vs.8nion o$ )ndia and 6rs!, Supreme 'ourt .rit Petition J'i#ilL No! 19 o$ 2001! 21>/conomicso$ $ood grain management in )ndia?, inistry o$ Finance ('hie$ /conomic Ad#iserC Oaushi+ 7asu, September 2010,httpCEE$inmin!nic!inE&or+ingpaperEFoodgrain!pd$ !

22 >Per$ormance /#aluation o$ the "argeted Public Distribution SystemC, Planning 'ommission, arch 200,

httpCEEplanningcommission!nic!inEreportsEpeoreportEpeoEpeoTtpds!pd$ ! >ustice .adh&a 'ommittee eport on 'omputerisation o$ PDS 6perations?,2009, httpCEEpdsc#c!nic!inEreport20on20computersisation20o$20PDS!htm!23 >/n#isioning a role $or Aadhaar in the Public Distribution System?, 8ni4ue )denti$ication Authority o$ )ndia, Planning 'ommission, une

2010,httpCEEuidai!go#!inE8)DTPDFE.or+ingTPapersE'irculatedTAadhaarTPDSTNote!pd$!2B 'hhattisgarh Food Security Act, 2012, httpCEE&&&!prsindia!orgEuploadsEmediaEFood20SecurityE'hhattisgarh20Food20Security

20Act!pd$!2 >'entral Rigilance 'ommittee eport on the Public Distribution System in "amil Nadu?, ('hairpersonC ustice D!P! .adh&a, uly 2010,

pdsc#c!nic!inE"amilnadu20reports!htm!2 'lause 1 (2(h o$ the National Food Security 7ill 2011, introduced in =o+ Sabha on December 22, 2011!2; >e#i#al o$ the Public Distribution SystemC /#idence and /%planations?, eeti+a Ohera, /conomic and Political .ee+ly, No#ember ,

2011!2 >'ash "rans$er System under PDS?, Press )n$ormation 7ureau, inistry o$ Food, 'onsumer A$$airs and Public Distribution, Decem ber

10, 2012!

29 >/conomic Sur#ey 2009-10?, 'hapter 2, 2010, httpCEEindiabudget!nic!inEes2009-10Echapt2010Echapter02!pd$!30 > "enth Fi#e @ear Plan o$ the Planning 'ommission (2002-0;?,

httpCEEplanningcommission!nic!inEplansEplanrelE$ i#eyrE10thE#olume2E#2Tch3TB!pd$!31 Oapur D!, u+hopadhyay P!, and A! Subramanian! >"he 'ase $or Direct 'ash "rans$ers to the Poor?, /conomic and Poli tical .ee+ly! p!

B0, April 12, 200! Ohera, ! >e#i#al o$ the Public Distribution SystemC /#idence and /%planations!? /conomic and Political .ee+ly!No#ember , 2011!

32 =o+ Sabha 8nstarred uestion No! 11, inistry o$ 'onsumer A$$airs, Food and Public Distribution, Ans&ered on ay ;, 2013!33 >"he political economy o$ $ood price policyC the 'ase Study o$ )ndia?, Oa#ery *anguly and Asho+ *ulati, .ider .or+ing Paper No!

2013E03B, April 2013, httpCEE&&&!rro

1388728622~~tpds thematic note

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