CHAPTER - V

NEW ECONOMIC POLICY AND PUBLIC DISTRIBUTION SYSTEM IN DINDIGUL DISTRICT

The present chapter analyses the data both secondary and

primary which were collected from Dindigul district. The

information gathered relates to the organisation structure of PDS

in Dindigul district, physical and financial performance of PDS

before and after implementation of New Economic Policy its

impact on PDS etc. The secondary data relate to allotment,

supply, prices, off-take, distribution of essential commodities

through fair price shops and number of fair price shops, card

holders etc.

Data collected from District Supplies Office, Tamil Nadu

Civil Supplies Corporation (TNCSC), Taluk Supply Office (TSO),

Co-operative Office and District Collectorate are analysed and

presented in the first part of this chapter. Primary data regarding

socio-economic status of the beneficiaries and non-beneficiaries,

details about awareness and use of PDS by the poor people and

practical difficulties faced by the PDS beneficiaries are also

analysed in detail in the second section of this chapter. A few

hypotheses are also tested with suitable and appropriate

statistical analysis in this chapter.

5.1 PUBLIC DISTRIBUTION SYSTEM IN DINDIGUL DISTRICT

Cooperatives play a predominant role in the distribution of

essential commodities to 4.43 lakh cardholders in Dindigul

District. Essential commodities of mass consumption like rice,

sugar, wheat and wheat products like rava and maida, edible oil

and kerosene are distributed through five lead societies and 509

link societies by an extensive network of 624 FPS. One of the

unique features of PDS in Tamil Nadu is that no private traders

are given license to run the FPS. At least one FPS is provided to

each revenue village even if the card strength is very low. The

conveniences of the cardholders are given the highest priority.

Even though every revenue village has FPS, there may be still

certain areas, which are far away from the existing shop, and it

may not be easily accessible to these villages. Because of the

limited number of cards in remote areas there is necessary to

open part time FPS. The District Collectors are empowered to

permit the same after obtaining the concurrence of the Registrar

of Cooperative Societies.

124

The District Collector is coordinating the PDS activities at

the district level by holding meetings with Civil Supplies Officials,

Regional Managers of the Tamil Nadu Civil Supplies Corporation.

Regional Joint Registrars, Deputy Registrar (PDS) and special

officers of the lead societies, Secretary to Government also

commissioner of Civil Supplies, Chairman-cum-Managing

Director of the Tamil Nadu Civil Supplies Corporation, Registrar

of Cooperative Societies and the Inspector General of Police Civil

Supplies. The organisational structure of PDS in Dindigul District

is exhibited in Figure 5.1

125"

5.1.1 Fair Price Shops

The Government runs public distribution system through

network of fair price shops, located in urban and rural area all

over the country with the objective of making available foodgrains

to the public at reasonable prices. The fair price shops are

distributing the essential commodities to meet the day to day

needs of the public: Table 5.1 shows the number of ration shop-

taluk wise in Dindigul District.

It is seen that the large number of ration shops had

increased from 476 in 1989-90 to 624 in 1998-99 in Dindigul

District. After the implementation of the New Economic Policy,

the number has risen from 492 in 1991-92 to 624 ration shops

in 1998-99. Large number of ration shops are functioning in

Dindigul Taluk (203), Palani (94), Vedasandur (87),

Oddanchatram (77) and Nilakkottai (74). But the functioning of

FPS in Natham and Kodaikkanal taluks is meagre in number.

Table 5.2 explains the Number of ration shops in Dindigul

Taluk of Dindigul District. The number of ration shops

in Dindigul Taluk are classified in 11 Frika, namely,

Dindigul Town, Dindigul South, Dindigul North,

Reddiyarchatram, Palakkanoothu, Dharmathupatti, Athoor,

Chinnalapatti, Sempatty, Siluvathur, and Kampliputhur. The

:otal number of ration shops increased from 143 in 1989-90 to

201 in 1998-99 in the study period in Dindigul Taluk. A large

number of ration shops is located in Dindigul Town Frika (urban)

and Chinnalapatti Frika (Rural). Frika ration shops in Dindigul

Town Frika had increased from 37 to 48, and Chinnalapatti

Frika ration shop increased from 18 to 23 during the same

period in Dindigul Taluk of Dindigul District.

5.1.2 Ration Cards

The government is trying to computerise the PDS system

so as to weed out the bogus cards. Out of the total 1.50 crore

cards, 20 lakhs cards were bogus hence causing a great loss to

the government ex-checker. The new ration cards would be

distributed to the public in three phases. In the first phases, the

new cards would be distributed in Chennai and the other

Corporation areas, while Municipalities and the district

headquarters would be taken up in the second phase, all the

remaining areas -town and village panchayats would be covered

in the third phase.

13D

In Dindigul district, the number of ration cards was

3,66,642 in 1989-90 and they increased to 4,51,891 cards in

1998-99. Of the total ration cards, Dindigul taluk is having

1,58,529 cards. Similarly, Palani (50,126 cards), Vedasandur

(64,770cards), Nilakkottai ( 62,934 cards) taluks are dominating

in the cards distribution in Dindigul District. Regarding the year

wise growth performance of ration cards in Dindigul District, a

meagre growth in the total number of cards, after the

implementation of the New Economic Policy, i.e., 3,80,372 cards

in 1991-92 and 4,70,854 in 1998-99 respectively. Nearly 70,000

new cards were supplied to the Public v^thin 10 Years in

Dindigul District.

1 3 i

Table 5.4 shows the number of ration cards supplied in

Dindigul Taluk during the study period from 1989-90 to

1998-99 in Dindigul District. Dindigul Taluk is classified into

eleven (11) Frika. In Dindigul Taluk, ration cards supplied

increased from 124103 in 1989-90 to 158529 in 1998-99.

Nearly 34,000 New cards were circulated to the public during

the period of 10 years. A large number of Ration Cards were

circulated in Dindigul Town Frika (urban) (46019 cards) and

Chinnalapatty Frika (Rural) (17810 cards) in the period on

1998-99 in Dindigul Taluk. The large number of ration card

users are living in Dindigul Town Frika (Urban) and

Chinnalapatti Frika (Rural) in Dindigul Taluk of Dindigul

District.

5.1.3. Stocks and Allotment

The recommended stock of foodgrains on 1st July of every

year is 22.3 million tonnes. The Food Corporation of India (FCI)

had an foodgrain stock of 35.6 million tonnes in -July 1995. FCI

had on excess holding of about 7.72 million tonnes in 1994 and

13.4 million tonnes in 1995 which means that the carrying cost

of buffer stocks increased by 45 percent in 1994 and 78 percent

134-

in 1995. Since the carrying cost of one tonne of foodgrains in

1994-95 W as Rs. 1447, the extra stock would involve an

additional Central Government expenditure of about Rs. 9689

million in 1994-95. Recently, the Central Government has

permitted the FCI to off-load the foodgrain stocks of the prices

fixed by it. Table 5.5 explains the stock of foodgrains in Dindigul

District during the period from between 1989-90 to 1998-99.

Table 5.5 reveals that the Rice stock had increased from

114.450 Tonn kilograms in 1989-90 to 11723.606 Tonne

kilograms in 1998-99. The wheat stock increased from 908.933

Tonne kilograms to 966.237 Tonne kilograms during the same

period. Similarly the stock of sugar, rava, maida, kerosene and

palmolin oil had also increased during the same period. It is

inferred that due to price revision and some other reasons, the

stock of essential commodities had increased after the

implementation of New Economic Policy.

The Commissioner of Civil Supplies allot commodity based

on allotment as per card. The present requirement of commodity

is as per unit and per family card prevailing norms for the entire

District and Taluk. Any family having card with 4 and more

members will get 12 kgs of rice. The State Government had

ordered the allotment 20 kgs of rice even though the same would

cost the Government an addition expenditure of Rs. 100 Crores

per annum. This scheme was effectively implemented without

any hesitation and hindrance. Giving free rice to the Old Age

Pensioner (OAP) and physically handicapped persons are some of

the other activities of PDS System.

1 3 8

Distribution

After implementation of NEP, family card is getting the 20

Kgs of rice, 2 Kgs of sugar, 5 Kgs of wheat, 5 Kgs of maida, 1

Litre of palmoli oil and 15 litres of kerosene in corporation area,

10 litres in township and 31itres in village area.

5.1.4 Supply

Table 5.7 explains the supply of foodgrains in Dindigul

District from 1989-90 to 1998-99. The data were collected from

the Officials of Tamil Nadu Civil Supplies Corporation in Dindigul

Region.

It can be inferred (table 5.7) that the Rice supplies had

increased from 38968.805 Tonnes kilograms to 63024.767

Tonnes kilograms, wheat from 4988.550 tonnes kilogram to

5102.016 tonnes kilogram sugar, from 8437.279 tonne kilograms

to 9709.018 tonne kilograms, Rava from 1581 tonn kilograms to

2046.510 tonne kilograms, kerosene from 524.711 tonne kilo

litre to 1939.503 tonne kilo litre, during the study period from

1989 to 1998-99. But in the case of the supply of palmolin oil

had decreased from 181.890 tonne kilo litre in 1989-90 to

118.701 tonne kilo litre in 1998-99. And its except all other

commodities supplied had increased during the study period.

Ho

5.2 IMPACT OF NEW ECONOMIC POLICY OK PUBLIC DISTRIBUTION SYSTEM

In order to analyse the real impact of new economic policy

on PDS beneficiaries and non-PDS beneficiaries in Dindigul

district, a sample of 100 PDS beneficiaries and 100 non-PDS

beneficiaries were interviewed. The result of the survey is

analysed in this section. The present section has been

categorised into three parts. The first part explains the general

conditions of the sample PDS beneficiaries and Non-PDS

beneficiaries. The changes in asset, employment, income,

expenditure savings and debt position of the respondents after

implementation of New Economic Policy (NEP) are analysed with

the suitable statistical tools in the second part. The last, part of

this section discusses the opinion and awareness about PDS of

the respondents.

5.2.1 General Conditions of the Respondents

The socio-economic conditions are the deciding factors and

they have a direct bearing on the ration cardholder and non-

ration cardholders. Socio-economic conditions of the respondents

are related to various factors like age, sex, community, religion,

. — torafik* T i l

occupation, education, employment, assets and family size, etc.

The respondents are classified into rural and urban households

in order to compare the PDS beneficiaries with the non-PDS

beneficiaries who are having ration cards and those who are not

having ration cards.

Table 5.8 explains the area wise classification of the

sample respondent. Of the 200 sample respondents, in the rural

area, 50 respondents are beneficiaries and 50 respondents

are non-beneficiaries. On the other h a n d in u r b a n area,

• 14-4-

50 respondents are beneficiaries and 50 are non-beneficiaries.

The sample villages are PerumaJkoilpatti and Chinnalapatti . The

sample area is Y.M.R. Patti and Balakrishnapuram in Dindigul

town. Of the PDS Beneficiaries, 85 respondents are cardholders

and 15 respondents are non-cardholders. Of the non-PDS

Beneficiaries, 70 respondents are non-cardholders and 30

respondents are cardholders. It is inferred that 85.00 percent of

PDS beneficiaries are cardholders and 70.00 percent of non-PDS

beneficiaries are non-card holders.

Age

Age is an achieved characteristic in the life cycle of human

beings. Age plays a key role in determining the needs of the

individuals. Needs identification, needs fulfillment and the

process of need fulfillment are to a greater extent related to the

age of the person concerned. Hence knowledge about age is

essential to arrive at meaningful conclusion in these type of

studies. An attempt is made to classify beneficiary and non-

beneficiary sample respondents on the basis of age group and

he same is summarised in Table 5.9.

145

In rural area the majority of the PDS beneficiary

households belongs to the age group between 41-50 years

(20 respondents) followed by 31-40 years (15 respondents). The

majority of the non-PDS beneficiary households belong to the age

group between 31-40 years (19 respondents) followed

41-50 years (1.5 respondents). The majority of the non-PDS

respondents belong to the age group between 31-40 years

(27 respondents)followed by 41-50 years (19, respondents). From

the table we conclude that 46.5 percent of the sample

respondents (93 respondents) belongs to the age group between

31-40 years.

14-fc

Sex

Sex, the ascribed of human being plays a dominant role in

the life of the human being. Especially in determining the status

and performing certain roles and for even achieving certain

positions because the various other factors such as values,

traditions and cultures play an integral role with this

characteristic in deciding the features. Here in this study, the sex

of the head of the household is analysed and the results are

given in Table 5.10.

Table 5.10 reveals that in rural areas, 44 PDS beneficiary

respondents are male and 6 are female and 43 non-PDS

beneficiary respondents are male and 7 are female. In urban

area, 45 PDS beneficiary respondents are male and 5 are female

and 46 non PDS beneficiary respondents are male and 4 are

female in the study district. Of the 200 respondents, 89

respondents (44. 5 percent) are male and 11 respondents (5.5

percent) are female. In non-PDS beneficiaries, 89 respondents

(45.5 percent) are male and 11 respondents (5.5 percent) are

female. Thus, 89.0 percent of respondents are male and 11.0

percent of respondents are female in Dindigul District.

Table 5.11 shows the religion, wise classif icat ion of the

sample respondents in Dindigul district. In Rura l a r e a , 43 PDS

Beneficiaries and 47 non-PDS beneficiaries w e r e H i n d u s .

7 PDS Beneficiaries and 2 non-PDS Benef ic iar ies were

Christians and only 1 non-PDS beneficiary w a s M u s l i m . In

urban area, 35 PDS beneficiaries and 39 non-PDS benef ic ia r ies

were Hindus. 9 PDS beneficiaries and Non PDS benef ic ia r ies

were Christians and 6 PDS beneficiaries a n d 3 non-PDS

beneficiaries were Muslims. It is clear that 82 p e r c e n t of

respondents (164) are belonging to Hindu religion, 1 3 . 0 pe rcen t

of respondents (26) are belonging to Christian re l ig ion and

5 percent respondents (10) are belonging to Muslim, re l ig ion.

Table 5.12 shows that in the rural area, 26 PDS beneficiary

respondents and 16 non-PDS beneficiary respondents belong to

SC/ST Community, 12 PDS respondents and 18 non-PDS

respondents belongs to MBC Community, 21 PDS respondents

and 30 non PDS respondents belong to BC community and only I

respondent belongs to FC Community. In urban, 27 PDS

respondents, and 9 non-PDS respondents belongs to SC /ST

community, 7 PDS respondents and 6 PDS respondents belong

to MBC community, 11 PDS respondents and 32 non-PDS

respondents belong to BC community and 5 PDS respondents 3

non-PDS respondents belong to the FC community.

It is therefore, inferred that of the 200 respondents, the

82 respondents (41.0 percent) belong to BC Community,

78 respondents {39.0 percent) belong to SC/ST community

31 respondents (15.5 percent) belong to MBC community and

9 respondents (4.5 percent) belong to the FC community.

Education

Education is an important factor, which decides the

standard of living, level of participation in various activities and

one's access to various aspects. Table 5.13 reveals -the

educational status of the sample respondents in Dindigul

i50

respondents were illiterates; 36 PDS respondents and 25 non

PDS respondent had completed their primary education, 8 PDS

respondents and 13 non PDS respondents had completed their

secondary school education and not a single respondent had

completed above school level. In the urban area 5 PDS

respondents and 13 non PDS respondents were illiterates, 22

PDS respondent and 22 non-PDS respondents had completed

their primary education, 19 PDS respondents and 15 non-PDS

respondents completed their secondary school education and

only 4 PDS respondents had completed above school level.

Of the 200 sample respondents, 105 respondents

(52.5 percent) had completed primary education, 55 respondents

(27.5 percent) had completed secondary school level,

4 respondents (2.0 percent) had completed above school level

and 36 respondents (18.0 percent) were illiterate in study

district. Thus, 52.5 percent of respondents constituted those who

had completed primary education in Dindigul District and they

formed the major share of the total respondents.

Family Size

Family size is also a deciding factor for food security

because in a small family the access to food can be more and it

may be positive. The family size is determined by certain

sociological factors namely caste and religion and also the

economic status has a role to play in deterauning the family size.

Therefore the average age wise family sizes in the rural and

urban area under study is depicted in Table 5.14.

345

From the "Table 5.14, it is seen that the age wise average

family members of the PDS and non PDS beneficiaries in rural

and urban level. In PDS beneficiaries family, the average family

members are 109, 145, 66 and 18 wise in the age group between

0-15, 16-35, 36-50 and above 50 in urban level and in urban

level, 70, 124, 84 and 42 wise in the age group betweenO-15, 16-

35, 36-50 and above 50 in 1999-2000. In non-PDS beneficiaries

level, the age wise average family size are 73,87,22 and 13 wise

in the age group between 0-15, 16-35,36-50 and above 50 in

urban level and in rural level 43,98, 34, and 16 in the age group

between 0-15, 16-35, 36-50 and above 50 in 1999-2000. Thus it

implies that, the age wise average family members of the

beneficiaries are 295(3.92), 454(6.05), 206(2.74) and 89 (1.18)

wise in age group between 0-15, 16-35, 36 - 50 and above 50. In

1999-2000.

5.2.2 Impact of Mew Economic Policy on PDS

Occupat ion

Each and every man on earth has to do some duty, for that he

may be rewarded in terms of monetary benefits or kind. The

occupational status is determined b}' ones educational s tatus

Decause if one is having a higher status in education it means

ha t the occupational status will be high.

15'4

The Table 5.15 shows that out of 100 rural respondents,

8 PDS respondents and 2 non- PDS respondents are cultivators

(Land holders), 25 PDS and 16 non-PDS respondents are

Agricultural labourers, 9 PDS and 22 non-PBS respondents are

non-Agricultural labourers, 2 PDS and 7 non-PDS respondents

are doing business and 6 PDS respondents and 3 non-PDS

respondents are working as professional. Out of 100 urban

respondents, 3 PDS and 4 non-PDS respondents are cultivators

(land holders), 1 PDS and 3 non-PDS respondent are Agricultural

labourers, 35 PDS and 22 non-PDS respondents are doing non

agri labourers, 4 PDS respondents are business, non business

and 7 PDS and 2 non PDS respondents are working as

professional.

15 5

To conclude, 98 respondents (49.0 percent) are working as

non-Agricultural labourers, 45 respondent (22.5 percent) are

Agricultural labourers 32 respondents (11.0 percent) are doing

business, 17 respondents (8.5 percent) are cultivators (land

holders) and 18 respondents (9.0 percent) are working as

professionals in Dindigui District. In the rural area, Agricultural

labourers are higher than other labourers are, and in urban area,

non-Agricultural labourers are higher. The majority of the

respondents were non-agricultural labourers.

Employment

The category of employment of the sample respondent are

agriculture, nan agriculture, business and government workers

etc. The average annual employment of the PDS and non-PDS

beneficiaries in the study district is presented in Table 5.16

respectively.

\SQ>

The total average number of working days of the PDS

respondents on an average was 175.19 days per year in before

1993-94. At present the total number of working days of the

PDS respondents on an average are 194.34 days per year in

1999-2000 by the PDS beneficiaries. Thus, we conclude that

the number of working days has increased from 191.80 days

.157

in 1993-94 to 216.36 days in 1999-2000 by the non PDS

beneficiaries.

Assets

The assets of the PDS and non-PDS respondent include

the own house, land holdings, livestock and dead stocks like

utensils, furniture, radio, cycle, jewels, etc. The asset

particulars of the sample respondents is exhibited in Table

5.17

IS 8

It is clear that the total average assets value was increased

from Rs.4766 in 1993-94 to Rs.6524.9 in 1999-2000. Nearly

Rs.2000 had increased in the during period for the PDS

beneficiaries. And the average assets value was increased from

Rs.9097.6 in 1993-94 to Rs. 11236.3 in 1999-2000, nearly

Rs.2200 has increased during the study period for the non PDS

beneficiaries.

Income

Income is the deciding factor of one's standard of living,

access to food, economic status, access to various infra-

structural facilities, family size and type. Thus the monthly

income of respondents analysed in Table 5.18 &19.

160

Table 5.18 shows the average monthly income of the PDS

respondents period before 1993-94 and in 1999-2000. Among the

PDS Beneficiaries, a comparison between before 1993-94 and in

1999-2000 in rural areas shows that PDS average income h a s

increased from Rs.363.2 to Rs.449.4. A comparison of before

1993- 94 and in 1999-2000 in urban areas shows the average

income has increased from Rs.537 to Rs. 856.2 by the PDS

Beneficiaries.

1 £ £

Table 5.19 reveals the average income of rural non-PDS

beneficiaries had increased from Rs.399.2 to Rs.563.4, i.e.,

nearly Rs.200 which they are earning to meet the price rise in the

Public Distribution System and the urban non-PDS Beneficiaries

average income had increased from Rs.654.4 to Rs. 1509.4 i.e.,

nearly Rs.800 they have been earning from the urban sources.

Income Inequality

The level of money income of the individual households is

closely related to the standard of living. The distribution of

money among members of the community determines standards

of living. In macro economic analysis, this must be taken into

account because spending and saving habits are different at

different income levels. So they gave consumers preferences and

the distribution of income governs the patterns of expenditure. It

affects the level of aggregate personal savings. The income

inequality has been analysed by using the formula for Gini Ratio:

i

If the concentration ratio is closer to zero, there is equal

income distribution. If the ratio is closer to zero, there is

greater inequality of income distribution. Gini concentration

ratio is calculated and tabulated beneficiary wise as shown in

Table 5.2Q-.

168

Table 5.24 shows that the Distribution of Gini Ratio on PDS

and non PDS beneficiaries in 1993-94 and 1999-2000.The Gini

ratio of the PDS beneficiaries are 0.3138 in 1993-94 and 0.4202

in 1999-2000. By the non PDS beneficiaries are 0.3659 in

1993-94 and 0.4785 in 1999-2000. The income ratio has

increased from o.3138 to 0.4202 during the period 1993-94 and

1999-2000 by the PDS beneficiareis and by the non PDS

benefisiaries income ratio has increased from 0.3655 to 0.4785

during the same period.

It reveals that the total annual gross income of the 100 PDS,

100 non-PDS sample house holds for the period of 1993-94 and

1999-2000 year in Dindigul District. Total household income is

Rs. 35,85,500. The sources of income are classified into four

categories, namely, agricultural work, non-agricultural work,

profession, others The main source of their households income

are classified into six groups on the basis of their annual gross

income and the distribution of household income is analysed

163

with the help of statistical tools like average, percentage, and

Gini Co-efficient. The objective of the section is to make a

comparison of inequality of income for the PDS beneficiaries and

the non-PDS beneficiaries in the sample block, before and after

the implementation of the New Economic Policy. It implies that

those households who have higher income have less members

and those income is lower have more members. However, larger

number of households is found in the income range of

Rs.25000 -105001. The higher income groups are comparatively

small in number but their influence on total income and

expenditure is significanto

Expenditure Pattern

The total annual consumption expenditure of the household

classified as:

i) Food Expenditure

ii) Non-food Expenditure

Food expenditure includes the expenditure on cereals, rice,

wheat, sugar, rava, maida, palmolin oil, kerosene, pulses, fruits,

edible oil, vegetables, milk and milk products, egg, fish and meat

etc., Expenditure on non-food items refers to expenditure made

by the households on education, entertainment, toilets, and

cosmetics, newspaper and magazines, postage, charity gifts and

donations, etc. 170

The consumption pattern of the PDS beneficiaries and non-

PDS beneficiaries is analysed in this section. The expenditure

items are classified into food items and non-food items. The

consumption expenditure on food items by the PDS beneficiaries

before 1993-94 and at present are compared in Table 5.25.

1 7 1

Table 5.25 explains the average monthly consumption

expenditure on food item by the PDS respondents. The average

monthly consumption expenditure of rice quantity changed by

6.5 kg and the value increased to Rs. 148.06. The change in

wheat quantity was 2.2 kg and increased in the value found to

the Rs. 10.85 followed by the changes in the sugar quantity to

7.4kg and the value of Rs.23.2. when compared with the

1993-94 and 1999-2000, the changes were not considerably

higher in the average monthly consumption of the palmolin oil,

mutton, vegetables and fruits and others.

Table 5.26 briefly explains the average monthly

consumption expenditure on non-food items by PDS

respondent. It is clear that the changes on the non-food

expenditure of the PDS beneficiaries was Rs 498.0 Among the

various expenditures the changes on education expenditure

was higher than other expenditures. The change was very

meagre in the case of house rent and entertainment item.

Average Monthly Consumption Expenditure by t h e Non-PDS Respondent

The average monthly consumption expenditure of non-

PDS Beneficiaries are explained in Table 5.27. The table that

the expenditure on all food items except expenditure on egg

have increased due to the changes in the price level in open

market. The egg price level is steady for past five years due to

the mass production of eggs in Tamil Nadu. While comparing

the consumption expenditure on food items for the different

two periods (1993-94 and 1999-2000) PDS beneficiaries and

non-PDS beneficiaries, the PDS beneficiaries expenditure had

increased at a low level. At the same time the non-PDS

beneficiaries consumption expenditure on food items had

increased at a high level.

174-

Table 5.28 explains the average monthly consumption

expenditure on non- - food items by the non-PDS beneficiaries.

The average house rent expenditure was increased from Rs.206.6

in 1993-94 to Rs.274.4 in 1999-2000 and the Education

expenditure from Rs.569.5 to Rs.656.8 during the same period.

Medical expenditure was increased from Rs.302.1 in

1993-94 to Rs.673.6 in 1999-2000. Table concludes that all the

non-food expenditure by non-PDS beneficiaries have increased

during the same period.

From the table 5.29 it is clear that average annual food

expenditure of PDS respondent household is Rs. 11185.63 and

non food expenditure is Rs. 12972.00 in 1993-94 and it has

increased to Rs. 13678.67 and Rs. 18956.4 in 1999-2000. The

average annual food expenditure is Rs. 13390.07 and Non-food

expenditure is 23427.6 in 1993-94 and it has increased to

Rs. 22434.97 and Rs.33090 by the Non-PDS respondents. It is

Inferred that, nearly Rs.8500 had increased from 1993-94 to

1999-2000 by PDS beneficiary and nearly Rs. 18500 had

increased from 1993-94 to 1999-2000 by the non-PDS

beneficiaries.

The above study focused that the average annual number

of working days , asset values and the changes of food and non

food expenditure by the PDS and non PDS respondents . The

analysis were compared between the year 1993-94 and 1999-

2000. The annual number of working days has increased from

191.80 days in 1993-94 to 216.36 days in 1999-2000. The total

assets value has increased from Rs.4766.3 in 1993-94 to

Rs.6542.9 in 1999-2000 for the PDS beneficiaries, and it has

increased from Rs.9097.6 in 1993-94 to Rs. 11236.3 in 1999-

1 7 8

coefficient of multiple determination (R2) is statistically

significant at 1 % level of probability as evident from the F

statistics. Hence, the proposed model is fit to draw inferences.

The Partial derivatives of both annual income and

household size on food expenditure are statistically significant at

1 percent level. One percent increase in annual income cetaris

paribus would increase on an average by 0.45 percent in the

household expenditure. Interpreted in the same way , one

percent increase in household size cetaris paribus would result

in an increase of 0.21 percent in the annual expenditure.

Therefore as both family income and household income size

tends to increase the annual food expenditure also increases

considerably for the PDS beneficiaries before 1993-94.

Similarly the result of the regression for non-food

expenditure for the PDS beneficiaries of 1993-94 are given in the

same table. It is inferred from the table that nearly 69 percent of

variartion in the non food expenditure is explained jointly by

both household annual income and family size. The F Statistics

is significant at 1 percent level of probability and it is quite good

to draw inference from the above equation.If the household size

is held constant a percent change in annual household income

would result is an increase of 1.11 percent in the non-food

184

expenditure by the same token , if household size tends to

increase 1 percent cetaris paribus would result in addition of

0.688 percent in non-food expenditure.

Therefore, for both food and non-food expenditure the

effect of annual household income and household size are both

positive confirming the established theoratical assumption.

The result of the regression analysis for the proposed

model for the non PDS beneficiaries in 1993-94 is given in table

5.31 . It can be inferred that the wo independent variables could

explain nearly 55 percent of variation in the annual food

expenditure . The coefficient of multiple determination (R ) is

statistically significant at 1 percent level of probability from the F

statistics.

The Partial derivatives of both household annual income

and household size on food expenditure are statistically

significant at 1 percent level. Evaluated at mean level one percent

increase in annual income cetaris paribus would increase on an

average by 0.67 percent in the household expenditure.

Interpreted in the same way , one percent increase in household

size cetaris paribus would increase 0.26 percent in the annual

expenditure. It is evident as both family income and household

size tends to increase the annual expenditure for the non -PDS

beneficiaries before 1993-94 are increases.

As regards the effect of annual household income and

family size on the non food expenditure results as given in Table

5.31 indicates that both the independent variables which are

statistically significant at 1 % percent level of profitability could

1ft £

explain nearly 49 percent of variation in the non food

expenditure . The coefficient of determination is statis tically

significant at 1 percent level of probability ( F significant at 1 %

Level) thus envisaging to draw inferences from the model for the

non PDS beneficiaries in 1993-94. it is inferred from the table

that a percent increase in annual household income cetaris

paribus would result in an addition of 0.87 percent in annual

non food expenditure. By the same token percent increase in

household size cetaris paribus results in an addition of 0.52

percent in annual non food expenditure and the result is in

confirmatory with the theoretical assumption. Thus, if annual

income and household size tends to increase it will invariably

result in additional food and non -food expenditure.

percent level of probability. Hence, the proposed model is fit to

draw inferences.

The Partial derivatives of annual income and household

size on food expenditure are statistically significant at 1 percent

level. One percent, increase in annual income cetaris paribus

would increase on an average by 0.354 percent in the household

expenditure. Interpreted in the same way , one percent increase

in household size cetaris paribus would result in an addition of

income of 0.15 percent in the annual expenditure. It is evident

that as both family income and household income size

increases the annual expenditure also increases considerably for

the PDS beneficiaries 1999-2000.

As regard the effect of annual household income and

family size on the non food expenditure results as given in Table

5.32 indicates that both the independent variables which are

statistically significant at 1 % percent level of profitability could

explain nearly 31 percent of variation in the non food

expenditure . The coefficient of determination is statistically

significant at 1 percent level of probability ( F significant at 1 %

Level) tlnas, envisaging to draw inferences from the model for the

non PDS beneficiaries in 1993-94. It is inferred from the table

thst a percent increase in annual household income cetaris

* • •

paribus would result in an addition of 1.05 percent is annual

non-food expenditure. By the same token percent increase in

household size cetaris paribus results in an addition of 0.514

percent in annual non food expenditure . Thus, if annual income

and house hold size tends to increase it will invariably result in

addtional food and non food expenditure.

Persual of table 5.33 reveals that the two independent

variables on the dependent variable could explain nearly 55

percent of the variation. The coefficient of multiple determination

(R2) is statistically significant as evident from the F statistic at 1

percent level of probability, hence, the proposed model is fit to

draw inferences.

The partial derivatives of both annual income and

household size on food expenditure are statistically significant at

1 percent level. One percent increase in annual income cetaris

paribus would increase on an average by 0.52 percent in the

household expenditure. Interpreted in the same way , one

percent increase in household size cetaris paribus would result

in an income of 0.20 percent in the annual expenditure. As both

family income and household income size tends to increase the

annual expenditure also increases or the non-PDS beneficiaries

in 1999-2000.

Regarding the effect of annual household income and

family size on the non food expenditure results as given in Table

5.33 indicates that both the independent variables which are

statistically significant at 1 (%) percent level of profitability could

191

explain nearly 0.473 percent of variation in the non food

expenditure . The coefficient of determination is statis tically at 1

percent level of probability ( F significant at 1 % Level ) thus ,

envisaging to draw influences from the model run for the non

PDS beneficiaries in 1993-94. It is inferred from the table that a

percent increase in annual household income cetaris paribus

would result in an addition of 0.524 % is annual non food

expenditure. By the same token as the percent increase in

household size cetaris paribus results in an addition of 0.205 %

in annual non food expenditure . The result is in confirmatory

with the theoratically assumption. Thus, if annual income and

house hold size to increase it will invariably result in addtional

food and non food expenditure.

The study reveals that there have been decreasing in the

expenditure on food and non food by PDS beneficiaries . This is

the same trend in the case of non PDS beneficiaries . The

expenditutre made on food and non food due to increase in

income and household size in 1993-94 is greater than that of the

expenditure made on food and nonfood by PDS beneficiariesmin

1999-2000. The reasons behind is that there has been gradual

decreases in the amount of subsidy by the Central Government

and there is slight differences in the prices of the same

commodity in PDS and open market. 152

Savings and indebtedness

Average monthly savings of the PDS and non-PDS

beneficiary households are explained in Table 5.33. The sources

of savings are Post Office, Banks, Private Money lenders and

others. The table explains the saving amount comparsion

between the year 1993-94 and 1999-2000 in urban and in rural

areas by the PDS and non-PDS respondents.

193

The average annual indebtedness of the PDS and Non-PDS

respondents are given in table 5.35 The study found that the

changes in the average annual indebtedness of the PDS

beneficiary households was increased Rs.287 in rural areas and

Rs. 728.6 in urban areas during the period from 1993-94 to

1999-2000. The non PDS beneficiary households average annual

indebtedness was increased Rs.316.4 in rural areas. And the

changes in the average annual indebtedness of the Non-PDS

beneficiary households was increased Rs. 1225.3 in urban areas.

It is clear that the debt position of the PDS beneficiaries and

Non-PDS beneficiary households have increased during the

study period.

5.2.3 Knowledge Attitude aad Practice

The awareness, attitude and practice of PDS beneficiaries

and non PDS beneficiaries are analysed in the forthcoming part

of this chapter.

Distance Between Home and Ration Shops

The beneficiaries' opinions about the distance between

home and ration shop are explained in Table 5.37. The actual

distance classified into two: less than 2km and more than 2km.

196

Table 5.36 explains of the distance between home and

ration shop of the opinion of the respondents. Of the 200 PDS

and non PDS respondents in rural and urban, 67 PDS

respondents and 66 non PDS respondents reveals that the

distance between home and ration shop is less than 2km and for

33 PDS respondents it is more than 2km. The opinion about the

ration shop is also explained in the same Table. Of the 200

PDS and non-PDS respondents, 49 PDS and 64 non - PDS

19 y

respondents answered that the ration shop is convenient, 21

PDS respondent, 20 non PDS respondents asked to set up the

ration shop in their nearby living areas.

Awareness of Availability of Ration Items:

The respondent, response about their awareness of

availability of the ration items is explained in Table 5.37. The

sources of awareness are Dhandora, Announcement, Notice

Board, Friends and Relatives etc.

Table 5.37 reveals that most of the PDS beneficiaries came

to know about the supply of PDS commodities in the concerned

ration shops only through the notice board (33.0 percent) and

friends and relations (25.0 percent) in the study district.

1 9 8

Distributions of Ration cards

The cardholders are receiving the card from the officials

namely, Revenue official, village leaders and contractors. The

details about the supply of ration cards to the beneficiaries are

explained in Table 5.38.

Of the 115 cardholders, 77 cardholders have received

their ration cards from the Revenue officials, 30 respondents

have received their ration cards from the village leaders and 8

respondents have received their ration cards from the contractor.

So, the revenue officials and village leaders play a significant role

in the supply of ration cards to the beneficiaries of PDS.

199

Quality of the PDS Commodity

The PDS Beneficiary opinion about the quality of the PDS

commodity are explained in Table 5.39. The selected PDS

commodities are Rice, Wheat, Sugar, Rava, Maida, Kerosene,

Palmolin oil and etc.,

Table 5.39 shows that a large number of respondent's j

opinions on rice (54) and wheat (57) quality are good, but their

opinion on kerosene (56) and palmolin (59) is fail-. The opinion

about the quality of PDS sugar (16), rava(18) is poor quality. As

per the opinion of this study, the government may cut down the I

poor quality commodities and necessary steps would be taken to

supply the best quality goods under PDS. i

'200

Quantity

Consumers benefit of public distribution system at

aggregate level was obtained to the tune of Rs. 18.36 crores for

the year 1991-92 sugar, wheat and rice contributed to Rs. 12.29

Rs.4.26 and Rs. 1.41 crores respectively. In Fair Price Shop, all

the commodities are under weight and it must be ensured to the

people, especially below poverty line. The respondents opinion

about the quantity of PDS Commodity are explained in

Table 5.40.

sol.

Table 5.40 revealed that in rural area, rice commodity

supplied to the card holders is from 17kgs to 18kgs, but average

requirements for one family is 50kg. Wheat commodity supplied

to the public is only 5kg, which is not enough for family. Sugar is

supplied 1.5 kg to 2kg but the actual requirement is 3kg. Rava

and maida supplied is 1kg only. Kerosene supplied under PDS is

2.5 litres per card but actual requirement is 4 litres, palmolin oil

supply is 1 litre. But in rural area, the palmolin is not supplied to

the cardholder. Rice, sugar, wheat, rava, maida are also

adequate to the rural people but at the same time, kerosene is

not adequate to the most of the card holders family. Most of the

respondents opinion is that they want more quantity of kerosene.

In urban area supply of Rice commodity is from 17kg to

20kg. But average actual requirements are 70kg and it is not

enough to most of the cardholder, wheat and sugar supply are

5kg and wheat requirement is enough. Kerosene supply is 10

liters in corporation areas, 5 liters in Municipality area. But

actual requirement is 20 litres in the Corporation area and 8

litres in Municipality area.

£03

It is inferred that the supply of rice, wheat, sugar, rava,

maida and palmolin under PDS are adequate to the family. But

kerosene is not adequate for the PDS beneficiaries.

Legalization of Ration Card

Table 5.41 explains the legalization of PDS cards given to

others by the respondents. Of the 150 PDS respondents, 76 PDS

respondents are aware that about the card given to others is

legally wrong. But 24 PDS respondents are not awareness about

the card given to others that is legally wrong. Of the 150 non-

PDS beneficiary, 78 respondents are aware and 22 respondents

are not aware about the cards given to others.

204

It is clear that (39.0) percent of non-PDS respondents and

(38.0) PDS respondents are aware about the cards given to

others as legally wrong.

The attitude of the PDS beneficiaries and non-PDS

beneficiaries towards the purchase /produce on their own, PDS,

open market are explained in Table- 5.42 The essential

commodities are rice, wheat, sugar, rava, maida, kerosene and

palmolin oil etc.

9.05

In urban area also, the reasons for not purchasing the

ration items are: no suitable time for purchasing, shortages in

weight, ration shop not functioning regularly in study district. Of

the 30 cardholders of non-PDS respondents, 14 cardholders

stated that no suitable time for purchasing and 7 respondents

answered that the card is mortgaged due to lack of money.

The reasons for not receiving Ration card from the office by

the non-PDS respondent are explained in Table. The reasons are

classified into six i.e., not necessary, change of native place,

recently applied, card cancelled, already applied but delay in

supply of card and not applied.

The study found that most of the non-cardholders (30.59)

are applying recently for the ration card to the taluk office in the

study district. The awareness about the other uses of ration

cards are given in Table 5.45.

identification. 46.0 percent of respondents opinion are for getting

a license and passport by the cardholder and non-cardholders.

The PDS System is to function in a good way but due to

some problems it is not able to do so. The respondent opinion

about the way of good functioning fair price shops are exhibited

in Table 5.46. The suggestions are: functioning regularly (21.0

percent), supply entitled quota of ration (29.00 percent), Display

the availability of ration everyday (8.5 percent) and weighment

must be ensured (41.5 percent). It is inferred that supply of PDS

commodities at correct weight would pave the way for effective

functioning of PDS in Dindigul district of Tamil Nadu.

to the Gram panchayat. The respondent opinion about the Gram

Panchayat run by the PDS is explained in Table 5.47.

The Table 5.48 explains the respondent opinion about

running of PDS by the Gram Panchayat. Majority of the

respondents (76 percent) had accepted the running of PDS

effectively by the Gram Panchayat or under New Panchayat Raj

System!

5.3 GENERAL PROBLEM

During the last decades the PDS dealt with between 11 and

19 tonnes per year, which is about 10 to 15 percent of the total

production of foodgrains in areas with surplus production, and

distributes them in the whole country.

For quite sometime, the PDS has seen as an essential

empowerment of India's food security policy. However, in the

\

wake of the New Economic Policy progrmme, which was

introduced in 1991, the PDS has been increasingly criticised.

In an attempt to bring down the subsidy, the government of

India has raised the PDS retail prices several time in the first half

of the 1990's. It means that the price difference between PDS

foodgrains and open market foodgrains come down and that the

willingness of consumers to buy PDS commodities decreased.

Subsequently, since procurement continues the result was an

unprecedented high stock level.

In early 1999 a further price rise of Above Poverty Line (APL)

foodgrains was introduced in order to reduce the subsidy for APL

families. The policy is that Below Poverty Line (BPL) families

receive 10 kilos of foodgrains per month at subsidised prices,

While APL families receive a variable quantity for a higher price

and only during a transition period.

FCI's total procurement and distribution costs (including

processing, storage, and transport and packaging costs) have

been increasing over the years and these costs have to be

reimbursed as subsidy to the FCI. FCI's unit costs of operations

have been increasing at a higher rate than that of the wholesale

price index for all commodities.

212.

Regarding malnutrition, despite the huge subsidy and the

large-scale of this PDS intervention, the food security of many

vulnerable households is still marginal or insufficient.

Distribution to the states has not been proportionate to the

number of poor people in each state and within the states has

shown that the available supplies have not gravitated in favour

of the poor.

Ration cards are issued only to those households who have

proper registered residential addresses. This means that many of

the poor who are homeless are left out.

The Public Distribution System has remained limited

mostly to urban areas for a considerable period of planning while

the coverage of rural areas was very insufficient. While more than

75 percent of the fair price shops are in rural areas, the level of

their effectiveness in actual supply of essential commodities,

particularly in rural, backward, remote and inaccessible areas

were very limited.

213

At present, there is no uniform criterion in storage and

issues of stock from the Food Corporation of India depots.

Construction of godowns without much planning and

consideration of release has resulted over the years in a situation

where bigger godowns continues to be under utilised and smaller

godowns over utilised.

The above analysis on the functioning of Public Distribution

System during the deregulation period in Dindigul District of

Tamil Nadu give clear cut picture about the changes in the

social, economic and cultural attitudes of the people after

implementation of New Economic Policy. The income and

employment pattern, consumption pattern, savings and

indebtedness level of the PDS beneficiaries and non-PDS

beneficiaries have also changed with the influence of the

deregulation under new economic policy in our country.

21.A-.