Team members: 1. Aman Kumar Singh 2. Shashank Tripathi 3. Apoorv Namdeo 4. Ankit Saraf 5. Aadarsh Mishra

“Everything else can wait , but not agriculture” - Pt. Jawaharlal Nehru These words are more relevant today than 65 years ago, since our population has grown from 300-1200 million during this period.

College : Truba Institute of Engineering and

Information Technology.

Bhopal.

A large number of families in India living under poverty line are not being benefited from PDS as they are not enrolled with ration cards.

Many bogus ration cards are issued to families above poverty line which is adversely affecting the system.

There are approximately 10 crore ration cards for 6.5 crore families in India.

Only 42% of the subsidized grain issued from central pool reach to the target group.

Over 36% of budgetary subsidies on food is siphoned off the supply chain , another 21% reaches the APL household.

The quantity and quality of the food promised in the policy is not being supplied to the Fair Price Shops(FPS).

The system lacks transparency and accountability at all levels. For every Rs.4 spent on the PDS only Rs.1 reaches the poor.

Inaccurate data reporting by FPS.

Absence of truck tracking system leading to delayed delivery, diversions, siphoning, etc.

Poor quality of packaging leads to loss of food grains.

Bogus complaint result in wastage of efficient time

70,000crores sanctioned by central govt. for PDS out of which 50% is

going in black market.

• Use of optical sensing smart ration cards for the distribution of food packages.

• Biometric linked accounts.

Authentication of Beneficiaries

• Computerized bill should be generated and provided to both beneficiary and govt.

• Database creation for every FPS.

• GPS Monitoring and Proper weighing should be done at different check posts.

Transparency of system

• Reduction in diversion of food supplies.

• Reduced number of trips for beneficiary to take different commodities

• Database for each FPS helps beneficiary to take food supply from any nearby FPS.

Advantages over existing

systems

Proper application Drives will be done so as to provide genuine smart ration cards to the beneficiary.

Trained FPS owners will be appointed with good communication and technical skills.

Devices such as barcode scanners , GPS tracking devices , digital weighing machines will be made available to the FPS.

Various check posts will be made for successive weighing during the transition of food supply.

The infrastructure of the food storage will be renovated for increase intake of the food available. As the result of which the two-fifth of the subsidy can be saved.

Approx.884 crore rupees will be required to fully implement the

proposed solution.

Out of which 394 crore can be funded by state

government and the rest can be raised by the central government.

Loans can be raised from private sectors.

Availing advance transaction charges from the service recievers and setting them off against

future payments.

The digitization will lead to lesser man power and less paper work.

The food supply sanctioned by the government will reach the

beneficiaries in distinguished equal amount.

Various check-post will help in always keeping a tab on the vehicles

carrying the food supply.

Regular auditing of the FPS will ensure equal and justified

distribution of the food supply.

Getting the system digitized will help in sustaining the process for

long period as the management of the data will be easy.

Cash credit account should be managed prudently to avoid parking of

high cost funds with the procurement agencies; subsidy received from

GoI should be deposited into cash credit account immediately to avoid

unnecessary payment of interest.

Steps should be taken to expedite the process of identification of AAY

beneficiaries and coverage by issue of ration cards in order to ensure

that the eligible beneficiaries get the benefit of the scheme; periodical

check of ration cards to weed out ineligible and bogus ration cards

should be conducted.

The department should strengthen the inspection mechanism over the

functioning of the FPSs and also review the performance of

Monitoring/Vigilance Committees at all levels in monitoring the

distribution of food grains.

Impact of solutions (contd.)

Non– availability / delay of utilization information to the Centre from States.

Inaccurate data reporting by FPS & longer time taken for allocation cycle.

Non-standard transportation rates & Cartel formation by transporters.

Poor quality of packaging leads to loss of food grains & extensive use of

hooks leads to spillage.

Cost and time incurred on preparation of multiple DDs by FPS results in

increased financial burden on the FPS.

Selection of inappropriate dealer leading to malpractices.

Absence of response and monitoring mechanism because of which, higher

authorities are unaware of number and status of grievances registered and

thus grievances are not getting resolved on time.

1. www.google.com 2. http://fciweb.nic.in/ 3. http://timesofindia.indiatimes.com/city/mangalore/Bio-metric-

system-to-curb-misuse-at-fair-price-shops-in-coastal-districts-too/articleshow/21911043.cms

4. http://aajtak.intoday.in/story/Raman-Singh -Famous-Person-of-2011--1-688090.html

5. http://www.wikipedia.org 6. http://www.gov.nic.in

7. Indian Economy & Microeconomics by S.k.Mishra & V.K.Puri