Public Distribution System

The rallying point for the Government and the Opposition in the Budget Session would be Price Rise. While it is a subject that the Government would try to address through the Budget and Policy around Food it has been the flawed Public Distribution System besides the Procurement and Warehousing inefficiencies that has caused immense damage to the Poor and the Nation.

Hon’ble PM has repeatedly talked about his idea of separating the Procurement, Storage and Distribution functions of FCI to achieve greater efficiency and accountability. This Budget is expected to bring the announcement of these measures.

Public Distribution is a complex activity. Disconnects at various stages and inadequacies of systems assisting Distribution need to be handled with care and thoughtfulness.

Some of the immediate steps that may be taken to improve the identification, availability and appropriateness of the Distribution eliminate the corruption leading to almost 50% leakage and ensure value proposition for all stakeholders.

Direct procurement under MSP from villages. This would help farmers by saving transport cost to Mandi besides reducing wastage of grain during transportation.

The Procurement is to be done in 100 Kg bags at the Source itself.

These bags will be directly dispatched from this place to consumers through district food or a newly formed district distribution department for 3-6-12 month distribution to beneficiaries.

All grain seekers from Government must be encouraged for 3-6-12 month stock purchase at one stroke with 100 Kg sealed bags leading to preservation of quantity and quantity preventing any intermediate manipulation by the Ration Shops.

This would prevent the need to repeatedly visit ration shop by such 3-6-12 month buyers and reduce their cost of procurement of annual Ration.

This will also reduce pressure on FCI running short of space for storage. This would also reduce Rotting and Rat menace substantially.

Even if 15-25% people from beneficiary list opt for the bulk purchase it would positively impact the system. Three intermediaries will be eliminated. Cost of Storage and Handling would go down and directly benefit the beneficiaries.

In 3 years, all of 83 Cr people under this social scheme of food security can be migrated to 3-6-12 month storage at home by giving attractive purchase incentives for bulk purchase.

Finally, every year eligibility test for social scheme seekers needs to be designed to weed out the bogus or ineligible.

With more jobs and higher skillsets about ten Crore people may be moved up and away from such schemes every year.

Replacement of a Huge System with dependence on State Governments can require a concerted and prolonged effort with patience overriding the frustration that would surely accompany such an effort