1. 1 PRESENTATION ON SCHEMES OF THE DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION ***** Department of Food & Public Distribution Government of India

2. ABOUT THE DEPARTMENT OF FOOD & PUBLIC DISTRIBUTION Department of Food & Public Distribution is part of Ministry of Consumer Affairs, Food & Public Distribution Its main functions include – formulation and implementation of nation policies on procurement, movement, storage and distribution of food grains Implementation of Public Distribution System Formulation of national policies relating to export/import, buffer stocking, quality control and specifications of foodgrains Price control, Inter-State trade & commerce in and supplly & distribution of Vanaspati, Oilseeds, vegetable oils, cakes and fats

3. 3 The President’s Address to the joint session of Parliament on 4 th June 2009 The National Food Security Act- -will provide a statutory basis for a framework which assures food security for all; -Every below poverty line family in rural and urban areas to be entitled to 25 kg of wheat or rice per month @ Rs.3 per kg; -will also bring about systemic reforms in public distribution system. -Targeted identification cards would subsume and replace omnibus BPL list.

4. 4 4 Consultations with States/UTs, Central Ministries, Planning Commission etc Concept Note on NFSA circulated on 05.06.2009 – responses invited Consultation meetings held on- 10.06.2009-State Food Secretaries 11.06.2009-Central Ministries, Planning Commission 12.06.2009-Experts and Economists 01.07.2009-Central Ministries, Planning Commission

5. 5 Finalisation of draft NFSA Empowered Group of Ministers (EGoM) constituted on 14.07.2009 EGoM has held several meetings to discuss the NFSA with a view to finalising the guidelines for framing the proposed law. NAC is considering issues relating to coverage, entitlement, etc. Once finalised, the proposed NFS Bill will be placed on website of Department of Food and Public Distribution for public scrutiny and comments.

6. 6 HISTORICAL PERSPECTIVE ON PDS PDS EVOLVED AS A SYSTEM OF MANAGEMENT OF SCARCITY AND FOR DISTRIBUTION OF FOODGRAINS AT AFFORDABLE PRICES PRIOR TO 1992 - PDS WAS A GENERAL ENTITLEMENT SCHEME FOR ALL CONSUMERS WITHOUT ANY SPECIFIC TARGET IN JUNE, 1992 REVAMPED PDS LAUNCHED IN 1775 BLOCKS – FOCUS ON HILLY, REMOTE, INACCESSIBLE BACKWARD AREAS, SCALE OF ISSUES 20 Kg. PER CARD TARGETED PDS INTRODUCED IN JUNE, 1997 – FOCUS ON BPL FAMILIES AAY INTRODUCED IN DEC,2000 THE POOREST OF THE POOR FAMILIES – INITIALLY FOR ESTIMATED 1 CRORE FAMILIES, LATER EXPANDED TO COVER 2.50 CRORE FAMILIES

7. 7 7 TPDS - JOINT RESPONSIBILITY OPERATION GOI (CENTRAL POOL OF FOODGRAINS) PROCUREMENT and STORAGE MAINTENANCE OF MINIMUM BUFFER STOCKS TRANSPORATION UPTO PRINCIPAL DISTRIBUTION CENTRES OF FCI AND BULK DELIVERY TO STATES & UNION TERRITORIES ALLOCATIONS TO STATES & UTS STATES & UT GOVERNMENTS STORAGE IN STATE/UT GODOWNS TRANSPORTATION TO FAIR PRICE SHOPS DISTRIBUTING TO RATION CARD HOLDERS THROUGH FPS LICENSING OF AND SUPERVISION OVER FAIR PRICE SHOPS IDENTIFICATION OF AAY & BPL FAMILIES ISSUANCE OF RATION CARDS TO ELIGIBLE FAMILIES ELIMINATING LEAKAGES/ GHOST CARDS ETC

8. 8 8 Coverage: 6.52 crore BPL families including 2.43 crore Antyodaya Anna Yojana (AAY) families 11.52 crore APL families Foodgrains required: 470 lakh tons annually at present scale of issue (@35kg/family to BPL and 15kg/family to APL per month) No. of ration cards issued by States/UTs: 11.05 crore BPL and 13.23 crore APL ration cards No. of Fair Price Shops: 5.04 lakh (including 1.18 lakh run by SHGs / Cooperatives/ Panchayats/ Urban Local Bodies) Targeted Public Distribution System (TPDS)

9. 9 CategoryScaleCIP AAY35/-Kgs. Rs.2/-Kg. Wheat Rs.3/-Kg. Rice BPL35/-Kgs. Rs.4.15/-Kg. Wheat Rs.5.65/-Kg. Rice APL15-35/-Kgs. Rs.6.10/-Kg. Wheat Rs.8.30/- Kg. Rice Targeted Public Distribution System Scale of Issue and CIP of foodgrains 9 Scale of issue (kg per family per month)- BPL FAMILIES -June 1997-10 kg, April 2000-20 kg, July 2001-25 kg and April 2002-35 kg. For AAY FAMILIES -December 2000-25 kg, April 2002-35 kg.

10. 10 StatesScaleCategory J&K, Hill States, N.E. States, Islands Territories 700 gms. per capitaAll BPL & APL Other States500 gms. per capitaBPL Sugar Scale & Coverage

11. 11 CategoriesRiceWheatTotal AAY 67.1634.8101.96 BPL 113.8960.92174.81 APL (@16.2kg.average) 76.16147.84224.00 Sub-Total of TPDS # 257.21243.56500.77 Other Welfare Schemes * 35.0015.0050.00 Flood, Drought, Disasters 18.0024.0042.00 Open Market Sales 20.0030.0050.00 Grand Total 330.21312.56642.77 Annual Requirement of foodgrains for PDS and Other Schemes * At present levels of allocations. May increase with universalization (in lakh tonnes) # At present scale of issue

12. 12 Procurement of Foodgrains YearRiceWheatCoarse grainsTotal Procurement 1999-00182.28163.550.00345.83 2000-01212.81206.306.51425.62 2001-02221.28190.543.14414.96 2002-03164.22158.010.60322.83 2003-04228.28167.956.51402.74 2004-05246.85147.878.26402.98 2005-06276.5692.2611.51380.33 2006-07251.07111.280.00362.35 2007-08287.36226.892.03516.28 2008-09336.85253.8213.76604.43 2009-10*311.26225.254.07540.58 Average247.17176.705.13428.99 (in lakh tons) *As on 21 st Sept. 2010

13. 13 ALLOCATION AND OFFTAKE UNDER TPDS from 2004-05 to 2010-11 (lakh tons) YEARALLOCATION (RICE & WHEAT) OFFTAKE (RICE & WHEAT) % OFFTAKE (RICE & WHEAT) (BPL+AAY)APLTOTAL(BPL+AAY)APLTOTAL( BPL+AAY) APLTOTAL 2004-05273.30443.68717.00229.2064.32293.5583.9014.5040.90 2005-06272.70443.53716.22230.8580.20311.0584.7018.1043.40 2006-07273.70302.83576.56229.0184.68313.6983.7028.0054.40 2007-08274.60118.16392.78245.6887.22332.9089.5073.8084.80 2008-09276.01111.75387.76251.8094.20346.0191.2084.3089.20 2009-10276.09199.94476.03263.40160.63424.0395.4080.389.10 2010-11 (upto July) 92.2559.00151.2590.1451.40141.5497.787.193.6

14. 14 OTHER WELFARE SCHEMES Foodgrains allocated to GoI Ministries and States & UTs at BPL issue prices, and free of cost under village grain bank scheme. HRD Ministry Mid Day Meal Scheme WCD Ministry Wheat Based Nutrition Programme Nutrition Programme for Adolescent Girls RD Ministry Annapoorna Scheme DFPD Scheme for Welfare institutions Scheme for SC, ST OBC Hostels Emergency Feeding Programme in KBK districts of Orissa Village Grain Banks scheme (VGB)

15. 15 ALLOCATION OF FOODGRAINS UNDER OTHER WELFARE SCHEMES RICE & WHEAT (LAKH TONS) 2004-05141.48 2005-0694.93 2006-0756.93 2007-0845.45 2008-0941.41 2009-1042.11 2010-11 (upto October 2010) 47.49

16. 16 Some challenges in TPDS Diversion/leakages Bogus / ineligible ration cards Lack of greater community participation in monitoring Allotment of FPS dealerships Viability of Fair Price Shops Weak Grievance Redressal mechanism

17. 17 i)States should undertake a campaign to review BPL/AAY list to eliminate ghost/ ineligible ration cards. ii)Strict action should be taken against the guilty to ensure leakage free distribution of foodgrains. iii) For sake of transparency, involvement of elected PRI members in distribution of foodgrains be ensured. iv)BPL/AAY lists should be displayed at all FPSs. v) District-wise and FPS-wise allocation of foodgrains should be put on websites and other prominent places, for public scrutiny. Nine Point Action Plan to Strengthen TPDS

18. 18 vi) Wherever possible, doorstep delivery of foodgrains should be ensured by States, instead of letting private transporters/wholesalers to transport goods. vii)Timely availability of foodgrains at FPS level and fixed dates of distribution to ration card holders should be ensured. viii)Training of members of FPS level Vigilance Committees should be ensured. ix) Computerisation of TPDS operations should be undertaken. Nine Point Action Plan to Strengthen TPDS 18

19. 19 Computerization of TPDS operations – FCI to Block level Godowns. Pilot in 3 Districts each of Andhra Pradesh, Assam, Chattisgarh & Delhi Computerization of ration card related database – 10 states have reported taking up data digitization Smart Card based delivery to Ration Card holders – Pilot Project in Haryana & Chandigarh GPS based tracking Vehicles transporting TPDS commodities – Tamilnadu, Delhi and Chattisgarh Technology based applications for improving functioning of TPDS

20. 20 Sl. No.Problem AreasProposed Solutions Consumer Issues 1Duplicate and Bogus CardsDigitization of beneficiary details, Biometrics with De-duplication (UID compliant) 2 Delivery from FPS Smart card, Secured coupons based distribution 3 Grievance Redressal Call Center / Helpline with computer based monitoring in public domain 4AccountabilityPerformance index at each level, monitoring through online data 5TransparencySMS based alerts, SMS and Email based queries, Web based Information System in Public domain Technology in PDS Reform

21. Some Best Practices Reported by States ANDHRA PRADESH Issuance of ration cards under “Iris Biometric Technology” to all the existing cardholders along with bar coded coupons. CHHATISGARH Improving economic viability of FPS - State Government provided Rs. 42 crores as seed capital to Gram Panchayats and SHGs for running FPS. One month credit facility to FPS. Transparency in distribution - During Rice Utsav, PDS commodities are distributed in the presence of vigilance committee members and Nodal officer appointed by Collector. DELHI Public Audit System - through the bonafide cardholders to see records whether they have received entitled foodgrains at prescribed rates. 21

22. Some Best Practices Reported by States- contd. GUJARAT FPS Model Center, the State Government has allowed the Model FPS to sell the daily use items to increase viability of FPSs. KERALA: Sabari Stores: For viability of Fair Price Shops (FPS), the Kerala State Civil Supplies Corporation purchase and supply the items on short-term credit basis. The scheme has been implemented in all the district of the State and the FPSs selected were named as “Sabari Stores. 22

23. Some Best Practices Reported by States- contd. MADHYA PRADESH Credit support facility: On pilot basis, MP State Civil Supplies Corporation has arranged credit facility for two districts namely Rajgarh and Sagar to facilitate better off-take of foodgrains. All Fair Price Shops are operated by Co-operative institutions with compulsory participation of ration card holders to ensure accountability. Door-Step-Delivery System TAMILNADU Use of GPS technology to tract vehicles transporting PDS commodities. 23

24. 24 States reported Implementation 1Review of BPL/AAY lists to eliminate ghost cards31 2Action against guilty to curb leakages33 3Involvement of PRIs in Distribution of foodgrains27 4Display of BPL/AAY list in FPS30 5District & FPS wise allocation on website 20 6Doorstep delivery of foodgrains17 7Timely availability of foodgrains32 8Training of FPS level vigilance committees27 9Computerization of TPDS operations10 Implementation of Measures to strengthen Public Distribution System 24

25. 25 States reported Implementation 10Adoption of Citizen’s Charter26 11Deletion of bogus/ineligible ration cards25 12Monthly certification on delivery of foodgrains20 13No. of FPS allotted to various groups29 14Action against defaulters26 15Wheat flour distribution14 16Training program taken up24 17Public awareness campaign taken up19 Implementation of Measures to strengthen Public Distribution System (contd.) 25

26. VILLAGE GRAIN BANK SCHEME Coverage – Food scarce & drought prone areas, desert, tribal and hilly areas Objective – To provide safeguard against starvation during lean season to marginalised and vulnerable families (BPL/AAY families) Scheme Details – Foodgrain @ 1 Qtl/family for maxm. of 40 families on loan basis. Govt. grant – Free foodgrain and Rs.12200 per VGB as cash grant for infrastructure costs. Eligible agencies – NGOs, SHGs, LBs/VPs/GSs, Community organizations 26

27. VILLAGE GRAIN BANK SCHEME – Implementing States Andhra Pradesh (6585)Manipur Assam (100) (67)Meghalaya (44) (40) Bihar (415)Nagaland (486) (300) Chattisgarh (1904) (1904)Orissa (500) (500) Gujarat (354) (226)Tripura (103) (39) Jharkhand (583)Uttar Pradesh (1281) (500) Kerala (387)Uttarakhand (55) (55) Madhya Pradesh (2784) (2644)West Bengal (820) (820) Maharashtra (1377) (1101)Total - 17 States (18692) (13085) 27

28. VILLAGE GRAIN BANK SCHEME - Issues States interest in implementation lacking Need for Monitoring functioning of VGBs by States VGBs to function as lending banks – effective recovery essential for successful functioning Timely furnishing of Utilisation Certificates to GOI 28

29. Publicity cum Awareness in TPDS Objective – To create awareness among TPDS beneficiaries on entitlements, rights, price, availability of essential items, etc. Scheme Details – for publicity through audio/visual/print media, bill boards, posters, etc. Govt. Grant – 80% cash grant of Central Govt. 20% State Share – Given in two installments Issues – Lack of State’s interest, Timely UC 29

30. PDS Training GOI provides grants-in –aid for conducting training programmes for officials of State Civil Supplies Departments Seminar/workshops for senior level officials of States/UTs and members of vigilance committees under PDS Proposals are to be sent by States/UTs to GOI for consideration

31. 31 Thank You....