Micro-Scholarship, What it is, How can it help me.pdf
Program Assessment of Public Distribution System Scheme
1. Assessment of Home Delivery Model of Public Distribution System in India Kartik Trivedi MPA SPEA Indiana University, Bloomington
2. Glossary PDS – Public Distribution System TPDS – Targeted Public Distribution Sytem GoMP – Government of Madhya Pradesh BPL – Below Poverty Line AAY – Aantyodaya Families APL – Above Poverty Line PRI – Panchayati Raj Institution (Local self governance institutions)
4. Mandla Population – 894236 Literacy – 60% JanpadPanchayat – 9 Gram Panchayat – 472 Schedule Tribe – 57.23% Villages – 1247 Area – 8771 sq km
5. Introduction to PDS system Food and nutrition security program Distributed through fair price shops Instrument for Governments Economic Policy Largest distribution network of its kind with 500,000 fair price shops catering to 330 million people Operated under joint responsibilities by National and State governments
6. Role National Government Procurement Allocation Storage Price Decisions Economic planning State Government BPL and AAY identification Distribution and supervision Providing Ration Cards Operational responsibilities State level storage
8. Targeted PDS Initiated in 1997 to focus on poor Introduced to target 60,000,000 BPL beneficiaries Transitory support from state government for APL support (food subsidy) AAY support introduced from 2000 First expansion of AAY in 2003-2004 (23% of BPL) Second expansion of AAY in 2004-2005 (31% of BPL)
12. Still based on 1993 poverty estimation even though poverty has been reduced
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14. Problems Associated with PDS Poor targeting Leakages Black marketeering Urban bias (rural consumers prefer consuming their own produce) Dependence on fine grains
15. Description of Mandla Scheme Pilot project in 37 panchayats 3 month ration in standard size 50kg bags. FPS is brought literally to the door steps Weighed in front of beneficiary
16. Advantages One time distribution Transparency in distribution Better spread Sustainable Lower corruption Time saving Gender advantages
17. Categorical Assessment Time Reduction Distribution van comes at Gram Panchayat level Villagers from same village benefits most Based on survey, significant conclusion could not be drawn
18. Money Availability 54% of the AAY cardholders depend on daily wages for the collection of money to purchase their ration 47%of the AAY cardholders depend on money borrowed from the friends and relatives BPL cardholders this ratio has increased to around 65% , may be because of improper targeting 33.5% of the respondents opined that they require more money 81.6% of the respondents opined that it was difficult for them to arrange the money 1.4% of the respondents expressed the fear of the theft of the ration Categorical Assessment
19. Categorical Assessment Wage Loss 18.9% of the respondents opined that they lost their ½ day wages 37.7% of the people lost the wages for a day 33.5% of the respondents reported no loss in the wages as other members of the family brought the ration
20. Dependency on other sources 77.4% of the respondents fulfill their demand from the retail shops 45.7% of the people said that the ration lasts for 1-2 months 43.4% 0f them said that the ration lasts for 2-3 months 7.1% of them borrowed from the other beneficiaries 13.2% of the people depends on their own production Categorical Assessment
22. Old v/s New 84.9% of the respondents favored the new system 9.4% of the respondents found the old system better than the new system 55.7% of the respondents in new system and 9% in the old system found that the salesman did not work properly
23. Final Analysis PDS acts as a nutritional backup and as price stabilizer Theoretically designed to cater the needs of all the BPL and AAY people in country The price difference offered between the subsidy and the market makes the distribution process ripe for corruption FPS is not perfect substitute to that available in open-market due to its poor quality Until the buying power of AAY and BPL increases, plugging the leakages is the only viable option to reduce the subsidy bill for the government Reduction in storage costs for the government Problem in assessing chronic and acute poor ‘Spread’ is still the problem
