PUBLIC SERVICE BROADCASTING.
Prasar Bharti-28th nov 1997
* Responsible to parliament thru ministry of I&B.
* In a small state like Manipur,Akashvani broadcasts in Manipuri, 6 major dialects & 23 minor dialects every day!
* 30 lang. this is what PSB has to do, to hold the idea of India together in one common bond.
* Digital terrestrial transmission-UK, Australia, Japan-provide better quality picture, and to lower operating costs for broadcast and transmission.
* DVB T stands for terrestrial like wise DVB S stands for satellite ,etc. DVB T2( digital video broadcasting i.e. terrestrial transmission , 2nd generation)
* Spectrum is used in USA (spent nearly US$2bn in distributing vouchers to citizens so that spectrum could be saved & sold at much higher prices)
* Entertainment-Education(E-E)- process of designing & implementing a media message both to entertain & educate,in order to increase audience measures: knowledge abt education issues.
* E-E application occurred -1951 (BBC the Archers World s longest running radio soap opera continues to this date ; addresses issues like HIV/AIDS prevention & envt conservation. Eg . Soul city- on going multimedia E-E prog. In South Africa
* Now lets c abt India- Our classification, archival & cartographic (making of maps) policy & philosophy of official secrecy is an abomination(disgusting) & has kept country illiterate & dangerously dependent on foreign sources.
* School books dnt carry accurate maps.
* To get out of this rut, country wud be advise to set up high powered National Commission on communication policy on model of US Hutchinsons commission in 1950 s & UNESCO Mc Bride s commission in late 70 s.
* Public Broadcasting in India falls short of UNESCO s definition : Public broadcasting made, financed & controlled by public, for public.It is neither commercial nor state owned, free from political interference & pressure from commercial forces.
* Indian Broadcasters should invest to protect & promote India s rich cultural, intellectual & religious heritage & publicise it globally.
* Doordarshan news has to be re-strenghtened , professionalise & made available on major satellite networks around the world..(likewise Hritik needs to go TO BBC for advertising his movie KRISh 3 whatever..)
* Any PB org. will have to be dependent on govt. ultimately for its survival, so there has to be a balance between preserving independence & maintaining relationship with the govt.
* TO take PRASAR BHARTI (PB) into world class org. that India deserves following steps-
1. A budget coming directly from Parliament to Prasar Bharti & bypassing the Ministry of Info. & Broadcasting completely.
2. A broad based method of appointing the Chairman & Board.
3. A CEO appointed by the board after open advertisement
4. Payscales & employment terms estd. By board for PB & not tied to Govt of traditionalist protocols.
5. Ability to hire whomsoever the board thinks appropriate, including foreigners.
* Community Radio (CR)-
Benefits-
1. Viable & trustworthy alternative to mainstream media in terms of news, information & entertainment.
2. Platform to enable participation of communities.Participation can be in varying intensities frm lending voice to a program to becoming decision makers on all aspects of management.
3. A channel to document & keep languages & culture alive on a daily basis
4. Means to promote values of access to education, economic & social justice, against gender,race ,caste & class based violence & transparency in governance.
5. Of priority to minority communities including sexual, racial & religious & linguistic minorities.
Whatever one calls it, CR can become a platform for even those without literacy to express themselves, potentially restoring self confidence, triggering dialogues & promoting transparencies in various issues.
Limitations :
1.Licensing mechanism can be lengthy & bureaucratic
2.clearly inconvenient for licenses operating in parts of country far away from delhi
3.CR not promoted on scale of MNREGS or other social welfare initiatives.
4.Independent Regulator should be given for CR rather than ministries involved to regulate. Eg FCC- US radio & ofcom-UK
* DD India-:
* Doordarshan launched its international channel on 14th March, 1995, earlier known as DD World renamed DD India - 2002.
* DD India up-linked from New Delhi and can be watched in 146 countries across the world.
* RADIO BROADCASTING came to India in 1923 operating 1st from Calcutta and then Bombay and then Madras.
* In a society like India, where there is widespread illiteracy, television is a key medium in shaping consensus around ideas and in driving the processes that constitute civil society. If Indian television is to play a meaningful role in building an egalitarian(equality), democratic society, public broadcasting that addresses the needs of audiences who do not buy washing machines and the latest cars is vital.
* Nowdays scenario about broadcasting is changed,it seems that only they operate for profits and huge profits n run after them!!
* Ideally, it (broadcast media) needs to provide quality entertainment and useful information that gives a healthy democracy could be built up. But, what is the situation in our country now? Television Broadcasting has now become an industry and day by day new entrants are joining the race with the sole motive of profit by reaping the benefits of consumerist culture, spread by the media, encouraged by the media and exploited by the media, after the globalisation and liberalisation of Indian economy.
* You can take a very recent example of media in U.P.where people r digging up(ASI) to get gold beneath earth that was some how buried by some raja.as predicted by some sadhu in his dream.Now thats how we can see how media gets adult and promotes either that sadhu indirectly people getting influenced towards superstition.( death of Narendra Dabholkar spent his life for getting passed anti superstition bill but in vain.)
* In the recent years, broadcasters have increasingly elevated financial interests above the public interest. Most of our Broadcast media there only to generate huge profit . Accepted truth that crime shows, sex shows and similar shows had many more viewers than other shows on news channels. Today television channels are making fast money by cashing on the news with wrong sense with wrong way. To become more popular and make money they have broken all the limits media must follow while serving to build a healthy and progressive society. They have no respect for the sentiments and ethics of the people and country they purportedly serve.
* Air-waves that belong to public property cannot be allowed to exploited by private television broadcasters for profit only ,and that also with out even paying the sufficient spectrum fee or the so called license fee.
* The presence on social media is very important to keep the younger and tech savvy people with its shoulders of AIR/DD .The power of social media we saw Anna Hazare movement in the recent past , a strong content management towards social media , Web casting services, radio pod casting and mobile tv services.
* Direct-to-Home (DTH) satellite television is becoming a buzzword in the satellite broadcast industry due to the fact that DTH offers immense opportunities to both broadcasters and viewers. Thanks to the rapid development of digital technology, DTH broadcast operators worldwide have been able to introduce a large number of new interactive applications in the television market besides a large number of entertainment programmes over a single delivery platform.
* Well an example of mobile tv also can be counted on this platform like tata sky add of a person registering complaint to police station tht his mobile cum tv has been lost n then hawaldar says sakali sakali ghetli ka
* Public service broadcasting has a good relationship to the sense of national identity. Globalisation and digitalisation can damage national identity in a number of ways, and I have shown that public service broadcasting can play a role in resisting these effects.
* highlighted CR, DD ,Prasar Bharti and their relationship towards driving a successful or questioning the integrity of nation India.
References:
1.Yojana magazine (JULY)
2.wikipedia
3.some reports on google
KARAN RAJPAL
Showing posts with label PUBLIC. Show all posts
Showing posts with label PUBLIC. Show all posts
Monday, January 13, 2014
PUBLIC HEALTH IN INDIA
* Public health refers to all organized measures (whether public or private) to prevent disease, promote health, and prolong life among the population as a whole. Its concerned with the total system and not only the eradication of a particular disease. The three main public health functions are:
1. The assessment and monitoring of the health of communities and populations at risk to identify health problems and priorities.
2. The formulation of public policies designed to solve identified local and national health problems and priorities.
3. To assure that all populations have access to appropriate and cost-effective care, including health promotion and disease prevention services.
* Thepublic health system in Indiacomprises a set of state-ownedhealth carefacilities funded and controlled by thegovernment of India. Some of these are controlled by agencies of the central government while some are controlled by the governments of thestates of India.
* Nodal Ministry - Ministry of Health & Family Welfare.
* List of institutions:
AIIMS (central govt.)
Regional Cancer Centre (centre and resp. state govt.)
Govt. medical hospitals
District hospitals
Taluk hospitals
Primary health care centre
* Key words for focus on issue:
* Right to health finds place in the Universal Declaration of Human Rights.
* Directive Principles of State Policy in articles 45 and 47.
* Health care indicators:
* MMR no of women in reproductive age (15-49) dying due to maternal causes per 1,00,000 live births sensitive indicator of quality of healthcare system. Absence of proper abortive centers is one reason
* IMR death of children below age of 1 year per 1000 live births- indicator of nutritional status
* TFR no of children born to women during her entire reproductive age indicates early marriage, lack of gap between births, lack of contraceptive measures and awareness
* Child sex ratio
* Anemia and malnutrition
* Goals set:
* IMR As per MDG it would be 27 by 2015.
* MMR - As per MDG it would be 109 by 2015.
* Total fertility rate (TFR): 2.1 by 2017.
* Policies:
* National health policy
* National population policy
* Why issue needs to be addressed
* When health improves, life improves by every manner.
* Indias burden in terms of maternal, new born, and child mortality is one the highest in the world.
* Health of the child and mother are closely linked; each has the capacity to influence the other.
* India is passing through demographic and environmental transition, which is adding to burden of diseases.
* There is triple burden of diseases of communicable and non-communicable and emerging infectious diseases
* Issues with public health
* Have disease oriented system rather than care oriented system
* The health care system present is quantitatively inadequate to serve the population.
* About 75% of the health infrastructures are concentrated in urban areas where 25% of the population lives.
* Significant inter-state, regional, social, gender disparities
* Sub-optimal health outcomes given level of income growth (GDP per capita)
* Sub-optimal spending by public sector
* Inadequate accountability of both public and private health service delivery
* Affordability of healthcare services is serious issues; especially tertiary services.
* Increasing public awareness for treatments is causing increase in demands.
* Unregulated private supply; unmonitored and unknown quality; concentration in urban areas
* Double Jeopardy increasing burden of non-communicable diseases, while communicable disease burden remains high.
* Chronic shortage of healthcare work force
* Lack of mobility for field staff
* Only 1% of GDP spent on health sector
* Inadequate integration of different health programs
* No referral system is present
* Lack of flexibility in program forestalls effective local level planning and implementation based on local disease priority.
* Delay in recruitment of healthcare workforce
* Postings not being done on work load basis or sanctioned basis
* Lack of HR management policies; no motivation
* Fragmented functional responsibilities
* ICDS, RWS, Food security, rural development, sanitation, etc., have little integration with healthcare.
* No public health cadre present
* Vacancies of specialists
* Lack of considerations of elements of disaster management in policies
* Suggestions/ Improvements
* Preventive and promotive health should be pursued to bring down expenses on curative Care.
* Increase expenditure in public health b govt
* Increase public investment in healthcare infrastructure
* Reduce out-of-pocket expenses by strengthening the government health system and strategic partnership with private sector that confirms to quality standards
* Resource allocation to districts and sub-district hospitals and health centers shall be based on formula that reckons remoteness, absence of private healthcare system, percentage of ST/SC population, prevalence of diseases, etc.
* Integration of primary, secondary, and tertiary health systems in order to provide comprehensive care
* Strengthened referral services.
* Revitalization of the primary health system, which is intricately linked with the first and second referral units with effective emergency transport services
* Energized comprehensive maternal and child health services
* Proactive community participation in promotive and preventive healt
* Few Measures taken as per 12th FYP
* Setting up of 6 AIIMS like institutes and up-gradation of medical colleges under Pradhan Mantri Swasthya Suraksha Yojana
* Promotion of institutional deliveries to reduce MMR through janani suraksha yojna
* Home based neo natal care through ASHA
* National Programme for the Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke (NPCDCS)started.
by Jyoti Anandani
1. Sources: WHO website, indian journal of public health; 12th FYP.
1. The assessment and monitoring of the health of communities and populations at risk to identify health problems and priorities.
2. The formulation of public policies designed to solve identified local and national health problems and priorities.
3. To assure that all populations have access to appropriate and cost-effective care, including health promotion and disease prevention services.
* Thepublic health system in Indiacomprises a set of state-ownedhealth carefacilities funded and controlled by thegovernment of India. Some of these are controlled by agencies of the central government while some are controlled by the governments of thestates of India.
* Nodal Ministry - Ministry of Health & Family Welfare.
* List of institutions:
AIIMS (central govt.)
Regional Cancer Centre (centre and resp. state govt.)
Govt. medical hospitals
District hospitals
Taluk hospitals
Primary health care centre
* Key words for focus on issue:
* Right to health finds place in the Universal Declaration of Human Rights.
* Directive Principles of State Policy in articles 45 and 47.
* Health care indicators:
* MMR no of women in reproductive age (15-49) dying due to maternal causes per 1,00,000 live births sensitive indicator of quality of healthcare system. Absence of proper abortive centers is one reason
* IMR death of children below age of 1 year per 1000 live births- indicator of nutritional status
* TFR no of children born to women during her entire reproductive age indicates early marriage, lack of gap between births, lack of contraceptive measures and awareness
* Child sex ratio
* Anemia and malnutrition
* Goals set:
* IMR As per MDG it would be 27 by 2015.
* MMR - As per MDG it would be 109 by 2015.
* Total fertility rate (TFR): 2.1 by 2017.
* Policies:
* National health policy
* National population policy
* Why issue needs to be addressed
* When health improves, life improves by every manner.
* Indias burden in terms of maternal, new born, and child mortality is one the highest in the world.
* Health of the child and mother are closely linked; each has the capacity to influence the other.
* India is passing through demographic and environmental transition, which is adding to burden of diseases.
* There is triple burden of diseases of communicable and non-communicable and emerging infectious diseases
* Issues with public health
* Have disease oriented system rather than care oriented system
* The health care system present is quantitatively inadequate to serve the population.
* About 75% of the health infrastructures are concentrated in urban areas where 25% of the population lives.
* Significant inter-state, regional, social, gender disparities
* Sub-optimal health outcomes given level of income growth (GDP per capita)
* Sub-optimal spending by public sector
* Inadequate accountability of both public and private health service delivery
* Affordability of healthcare services is serious issues; especially tertiary services.
* Increasing public awareness for treatments is causing increase in demands.
* Unregulated private supply; unmonitored and unknown quality; concentration in urban areas
* Double Jeopardy increasing burden of non-communicable diseases, while communicable disease burden remains high.
* Chronic shortage of healthcare work force
* Lack of mobility for field staff
* Only 1% of GDP spent on health sector
* Inadequate integration of different health programs
* No referral system is present
* Lack of flexibility in program forestalls effective local level planning and implementation based on local disease priority.
* Delay in recruitment of healthcare workforce
* Postings not being done on work load basis or sanctioned basis
* Lack of HR management policies; no motivation
* Fragmented functional responsibilities
* ICDS, RWS, Food security, rural development, sanitation, etc., have little integration with healthcare.
* No public health cadre present
* Vacancies of specialists
* Lack of considerations of elements of disaster management in policies
* Suggestions/ Improvements
* Preventive and promotive health should be pursued to bring down expenses on curative Care.
* Increase expenditure in public health b govt
* Increase public investment in healthcare infrastructure
* Reduce out-of-pocket expenses by strengthening the government health system and strategic partnership with private sector that confirms to quality standards
* Resource allocation to districts and sub-district hospitals and health centers shall be based on formula that reckons remoteness, absence of private healthcare system, percentage of ST/SC population, prevalence of diseases, etc.
* Integration of primary, secondary, and tertiary health systems in order to provide comprehensive care
* Strengthened referral services.
* Revitalization of the primary health system, which is intricately linked with the first and second referral units with effective emergency transport services
* Energized comprehensive maternal and child health services
* Proactive community participation in promotive and preventive healt
* Few Measures taken as per 12th FYP
* Setting up of 6 AIIMS like institutes and up-gradation of medical colleges under Pradhan Mantri Swasthya Suraksha Yojana
* Promotion of institutional deliveries to reduce MMR through janani suraksha yojna
* Home based neo natal care through ASHA
* National Programme for the Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke (NPCDCS)started.
by Jyoti Anandani
1. Sources: WHO website, indian journal of public health; 12th FYP.
Public grievance redressal mechanism(PGRM)
Public grievance redressal mechanism(PGRM)
Why need arises?
* Grievance means complaint and redressal means to solve/to address.
* PGRM mechanism to solve peoples complaint regarding functioning&/ policy of gov. officials.
* Also, Public participation is necessary to make governance effective by officials and political leadership e.g poor road conditions .pot holes, PDS system.
* To make public service delivery system more citizen centric.
* a large amount of gov. machinery is involved in various activities like allocation of passports, banking, collection of taxes, railway, education ,health etc which are prone to grievances.
Steps taken:
* Government in order to solve the issue of grievance redressal, it has moved towards use of ICT(information & communication technology) or say e-gov.
* Government has design a software CENTRTALISED PUBLIC GRIEVACE REDRESS & MONITORING SYSTEM (CPGRAMS) which is made operational in all ministries/department.
* CPGRAMS uses internet based ICT to enable all central ministeries/dept/ to handle multilevel & multifarious grievance related data and to compare/collate data to improve public service delivery system.
* Department of administrative reforms & public grievance(DARPG):
* Works under ministry of personnel, public grievances &pension.
* It is chief policy making, monitoring and coordinating dept. for public grievances arising from the work of ministries/dept. or organizations in GoI.
* The public grievance dept. of DARPG fulfills following responsibilities:
1. Issue of policy guidelines for redress of public grievances.
2. Issue of policy guidelines for redress of staff grievances.
3. Emphasizing on service delivery improvements by making citizen charter more effective with provisions for information & facilation counters.
4. Emphasizing on using grievances for making systemic improvements.
* Following Works are done by public grievances dept. for policy, monitoring and co-ordination:
1. Policy formulation role: policy formulator & facilitator to form new policy to meet needs and challenges.
2. Monitoring role: act as an external agency and review the status of pending grievances in all central ministries/dept.
3. Coordinating role: coordinate all central dept/ministries through CPGRAMS. A citizen are free to lodge their complain to dept. concerned or to DARPG through CPGRAMS. Also free to lodge complaint by post on any plain sheet/post card/inland letter. Grievance received by post is lodge on to CPGRAMS and then transfer to respected dept.
4. SEVOTTAM framework: To bring systematic improvement in public service delivery system DARPG conducted various field visit and interaction with citizen group,workshops ,consequently SEVOTTAM was form. It includes with major task CITIZEN CHARTER,PUBLIC GRIEVANCE REDRESS,PUBLIC SERVICE DELIVERY CAPABILITY.
1. Organisation structure for public grievances: Apart from DARPG,there other dept. who are assign these task :
1. A public wing in rashtrapati bhawan secretariat & its website
2. A public in PMO.
3. The directorate of public grievances in cabinet secretariat.
4. The department of pension and pensions welfare.
Best practice:
* SWAGAT online:
* State-Wide Attention on public Grievance by Application of Technology.
* Enable direct communication between Citizen and CM.
* It is online grievance redressal system helps to seek redressal of pending greivances of common men once a month.
* It is 3-tier grievance redressal system in gujarat: taluka,district, state level.
* Grievances are done reviewed by CM himself.
How it works:
* Grievances are logged in, transmitted and made available online to the officers concerned who have to reply within 3 to 4 hours.
* The departments concerned then have to be ready with the replies, before 3 p.m., when the Chief Minister holds video conference with all the districts concerned.
* Applicants are called one by one and the chief minister examines each complaint in detail.
* The information sent by the department is also reviewed online in the presence of the complainant and the Collector/District Development Officer/Superintendent of Police and other officials concerned.
* Attempts are made to offer a fair and acceptable solution on the same day and no applicant has ever left without any firm reply to his grievance.
* SANJOG helpline:
* Works on toll free telephone networks & web interface
* Multilingual
* SMS & fax modem enabled
* GIS based performance analysis.
* Citizen will call to the toll free number and will register the complain
* The Call center executive will register the complain and will generate a ticket id
number and will send the grievance to the 1st escalating authority throw sms, e-mail
and fax.
* The Authorities if solving the problem within the time provided can close and update
the status, otherwise the issue will auto escalate to the next authority as per the
system configuration.
ref:
http://pgportal.gov.in/
http://dpg.gov.in/
http://www.narendramodi.in/
http://sanjoghelpline.in/website/home.html
by -
dhrumil soni
Why need arises?
* Grievance means complaint and redressal means to solve/to address.
* PGRM mechanism to solve peoples complaint regarding functioning&/ policy of gov. officials.
* Also, Public participation is necessary to make governance effective by officials and political leadership e.g poor road conditions .pot holes, PDS system.
* To make public service delivery system more citizen centric.
* a large amount of gov. machinery is involved in various activities like allocation of passports, banking, collection of taxes, railway, education ,health etc which are prone to grievances.
Steps taken:
* Government in order to solve the issue of grievance redressal, it has moved towards use of ICT(information & communication technology) or say e-gov.
* Government has design a software CENTRTALISED PUBLIC GRIEVACE REDRESS & MONITORING SYSTEM (CPGRAMS) which is made operational in all ministries/department.
* CPGRAMS uses internet based ICT to enable all central ministeries/dept/ to handle multilevel & multifarious grievance related data and to compare/collate data to improve public service delivery system.
* Department of administrative reforms & public grievance(DARPG):
* Works under ministry of personnel, public grievances &pension.
* It is chief policy making, monitoring and coordinating dept. for public grievances arising from the work of ministries/dept. or organizations in GoI.
* The public grievance dept. of DARPG fulfills following responsibilities:
1. Issue of policy guidelines for redress of public grievances.
2. Issue of policy guidelines for redress of staff grievances.
3. Emphasizing on service delivery improvements by making citizen charter more effective with provisions for information & facilation counters.
4. Emphasizing on using grievances for making systemic improvements.
* Following Works are done by public grievances dept. for policy, monitoring and co-ordination:
1. Policy formulation role: policy formulator & facilitator to form new policy to meet needs and challenges.
2. Monitoring role: act as an external agency and review the status of pending grievances in all central ministries/dept.
3. Coordinating role: coordinate all central dept/ministries through CPGRAMS. A citizen are free to lodge their complain to dept. concerned or to DARPG through CPGRAMS. Also free to lodge complaint by post on any plain sheet/post card/inland letter. Grievance received by post is lodge on to CPGRAMS and then transfer to respected dept.
4. SEVOTTAM framework: To bring systematic improvement in public service delivery system DARPG conducted various field visit and interaction with citizen group,workshops ,consequently SEVOTTAM was form. It includes with major task CITIZEN CHARTER,PUBLIC GRIEVANCE REDRESS,PUBLIC SERVICE DELIVERY CAPABILITY.
1. Organisation structure for public grievances: Apart from DARPG,there other dept. who are assign these task :
1. A public wing in rashtrapati bhawan secretariat & its website
2. A public in PMO.
3. The directorate of public grievances in cabinet secretariat.
4. The department of pension and pensions welfare.
Best practice:
* SWAGAT online:
* State-Wide Attention on public Grievance by Application of Technology.
* Enable direct communication between Citizen and CM.
* It is online grievance redressal system helps to seek redressal of pending greivances of common men once a month.
* It is 3-tier grievance redressal system in gujarat: taluka,district, state level.
* Grievances are done reviewed by CM himself.
How it works:
* Grievances are logged in, transmitted and made available online to the officers concerned who have to reply within 3 to 4 hours.
* The departments concerned then have to be ready with the replies, before 3 p.m., when the Chief Minister holds video conference with all the districts concerned.
* Applicants are called one by one and the chief minister examines each complaint in detail.
* The information sent by the department is also reviewed online in the presence of the complainant and the Collector/District Development Officer/Superintendent of Police and other officials concerned.
* Attempts are made to offer a fair and acceptable solution on the same day and no applicant has ever left without any firm reply to his grievance.
* SANJOG helpline:
* Works on toll free telephone networks & web interface
* Multilingual
* SMS & fax modem enabled
* GIS based performance analysis.
* Citizen will call to the toll free number and will register the complain
* The Call center executive will register the complain and will generate a ticket id
number and will send the grievance to the 1st escalating authority throw sms, e-mail
and fax.
* The Authorities if solving the problem within the time provided can close and update
the status, otherwise the issue will auto escalate to the next authority as per the
system configuration.
ref:
http://pgportal.gov.in/
http://dpg.gov.in/
http://www.narendramodi.in/
http://sanjoghelpline.in/website/home.html
by -
dhrumil soni
PUBLIC DISTRIBUTION SYSTEM: A HOLISTIC ANALYSIS
PUBLIC DISTRIBUTION SYSTEM: A HOLISTIC ANALYSIS
The article presented here is related to the topic: Public DistributionSystem- objectives, functioning, limitations, revamping, under General Studies Paper III.
Challenges faced by PDS today
With a network of around 5 lakh fair price shops (FPS) distributing commodities worth more than Rs 30,000 crore annually to the PDS in India is perhaps the largest distribution network of its kind in the world. However, there are huge challenges faced by the PDS across the country.
Challenges
In 2008, an study for TPDS was carried out by National Institute of Smart Government covered various aspects of the functional areas with the perspective of People, Process and Technology. Challenges in the following six key functional areas were studied: allocation, movement, storage, finance, licensing and regulation of FPSs, and grievance redressal.
The challenges noted were:
Allocation
2. Non availability / delay of utilization information to the Centre from States
2. Non - availability / delay of closing balance details and updated card status at State level from the districts, block and FPS levels.
3. Inaccurate data reporting by FPS
4. Longer time taken for allocation cycle
Movement
1. Absence of truck tracking system leading to delayed delivery, diversions, siphoning etc.
2. Non-standard transportation rates
3. Cartel formation by transporters
4. Late submission of demand drafts/cash by FPS for lifting leads to sub optimal route planning
Storage and Quality Control (QC)
1. Non-availability of stock positions in few states leads to inappropriate allocation and excess stock build up at intermediary storage points
2. Poor quality of packaging leads to loss of food grains
3. Extensive use of hooks leads to spillage.
4. Insufficient godown capacity of intermediate storage points result in multiple shipments
5. Temperature fluctuations due to weather leads to variations in weight of food grains
6. Loss of food grains due to infestation
7. Manpower shortage leads to delay in dispatches and non compliance to policies.
Finance
1. Poor financial condition of FPS.
2. Cost and time incurred on preparation of multiple DDs by FPS results in increased financial burden on the FPS.
Licensing and Regulation
1. Inadequate monitoring leading to diversion of stock
2. Selection of inappropriate dealer leading to malpractices
3. Lack of standard selection procedure and guidelines
4. Difficulty in identification of elapsed licenses
Grievance Redressal
1. 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
2. The service level agreements for grievance redressal are not clearly defined
3. Bogus complaints result in wastage of officials time
4. Lack of integration between various complaint and registration channels leads to multiple actions at different levels
Based on the above study, a scheme for computerization of TPDS operations was taken up by the Department of Food and Public Distribution.
Apart from the challenges identified above, there remains the fundamental challenge of having an accurate database of eligible beneficiaries. The existing databases are plagued with inclusion and exclusion errors in identification of beneficiaries and fake ration cards.
Choice and convenience for the beneficiary has not been adequately addressed in the present enabled with closed circuit TV monitoring on a trial basis. An online application has been made available to consumers to register their complaints through a website.
Analysis of PDS System in present scenario
The Public Distribution System (PDS) provides subsidized food and fuel to a large number of people in India. Of all the social safety net programs of Government of India and various State Governments, the subsidies on food and fuel are perhaps the most important ones. Affordable food is a source of sustenance for a large segment of the population; affordable kerosene is extensively used for cooking and lighting by the poor.
Given the importance of food and kerosene for sustenance, it is not surprising that these subsidies account for a large fraction of the total subsidy expenditure of the Government of India. However, deficiencies in the implementation of PDS have plagued the system. In many cases, the true beneficiaries of these subsidies suffer due to wholesale problems such as large-scale pilferage and diversion, and retail level problems such as duplicates and ghost beneficiaries, wrongful exclusion and inclusion, availability and quality of the commodities, as well as Fair Price Shop level pilferage. While implementation varies from state to state, there are a number of areas in the PDS system which requires immediate attention.
A number of suggestions have been made over time to reform PDS. These reforms include:
1. Grassroots level transparency that include increased social audits, painting of PDS offtake on walls of the FPS shops, painting of trucks;
2. Beneficiary empowerment through the use of coupons, or technology such as smartcards, or even direct cash transfers;
3. Monitoring the movement of goods through the use of technology, such as GPS tracking of trucks; and
4. Increased monitoring, supervision, accountability, and transparency.
Along with the reforms suggested above, the following features also need to be accounted for in order to attempt a comprehensive solution for deficiencies in PDS:
1. A solution that is incentive-compatible for all stakeholders, so that they benefit by participating in the system, rather than trying to benefit through subverting the system. For example, commission rates for FPS owners should be set to ensure that they earn adequate returns on their investment;
2. Strengthening the public provision of the State with appropriate use of technology, to bring it on par with best practises in the field. Strategic control needs to be retained within Government at all times;
3. A token-agnostic technology solution that can accept physical coupons, smartcards, electronic coupons, and even facilitate direct cash transfers where different states may choose from different solutions based on their own requirements;
4. Provide beneficiaries maximum choice:
1. choice of location;
1. choice of the mix of commodities;
1. choice to purchase commodities in convenient quantities, and in any number of instalments; and
1. choice to purchase commodities or receive a direct transfer of subsidy.
5. Aadhaar can be used in PDS to simplify a number of processes:
1. Simplification of Ration Card registration, so that beneficiaries can apply for a Ration Card conveniently;
1. Cleaning up the beneficiary database;
1. Use of Aadhaar authentication as appropriate; and
1. State Governments can use Aadhaar Payments Bridge and Aadhaar Enabled Payments Systems to channel subsidy funds for approved commodities to Aadhaar-enabled Bank Accounts.
Keeping in view the proposed National Food Security Bill it is imperative to undertake these reforms at the earliest.
Best practices from States using IT in PDS
A summary of the best practices in TPDS implementation as reported by some States is as follows:
1. Creation of central beneficiary database Chhattisgarh, Gujarat, Tamil Nadu, etc.
1. Cleaning up of databases through use of biometrics Andhra Pradesh, Madhya Pradesh, etc.
1. Maintenance of Ration Card database using web based application software Chhattisgarh, Gujarat, Tamil Nadu, etc
1. Issuance of TPDS commodities through:
1. Bar-coded Ration card Chhattisgarh, Gujarat, etc.
1. Smart Card based ration cards Andhra Pradesh, Chandigarh, Haryana, Orissa, etc.
1. Food Coupons Bihar, Gujarat, Madhya Pradesh, Orissa, etc.
1. Online biometric verification before transaction Gujarat.
1. Automated allocation every month using web-based application Chhattisgarh, Tamil Nadu, Gujarat etc.
1. Generation of delivery order, truck challans, receipts and movement of commodities between Distribution Centers are being carried out through an application software Chhattisgarh.
1. Automated assessment of transportation requirements and optimum utilization of trucks Chhattisgarh.
1. Use of GPS for tracking movement of trucks Tamil Nadu.
1. Availability of PDS related information on website such as list of Ration Card holders, FPS list, allocation, month-wise lifting and sales by FPS etc. Chhattisgarh, Tamil Nadu.
1. SMS alerts sent to registered beneficiaries / citizens, vigilance committees for a designated FPS whenever PDS commodities are dispatched from a godown Chhattisgarh, etc.
1. Grievance redressal system and availability of information regarding F&CS department through toll-free numbers, website Chhattisgarh, Tamil Nadu, etc.
Lessons from use of IT in PDS in states
After various deliberations and discussions, the Task Force observed the following:
1. There is wide variance between states in terms of the extent of computerization undertaken in PDS. Each state has approached computerisation in a different way and has achieved different degrees of success based on a variety of factors;
1. Even in states that have undertaken computerization efforts, wide variation in their strategy, focus and intent exists. Many efforts have been piecemeal and on a pilot basis and their scalability is yet to be tested;
1. A few states have computerized the supply chain (from Godown to Fair Price Shop) while others have used technology to address last mile delivery issues (delivery to the PDS beneficiary). Hence both upstream and downstream computerization efforts in the PDS chain have been undertaken;
1. NIC has played a major role in computerization of PDS efforts in various states. They are in the process of combining their software developed for various states into a common software platform for PDS;
1. There is a need to make a comprehensive As-Is study in all the States to access the level of computerization across the country in order to have a complete view of the extent of leverage of technology in the PDS delivery mechanism;
1. An IT strategy is much more than just developing common software. It requires an institutional mechanism to undertake the complex task of conceptualizing, developing and maintaining the IT systems on a continuous basis.
Technology, while not a panacea for solving the problems of PDS, is crucial in improving the efficiency of PDS and bringing it to the levels of optimum productivity. Targeting, as is done today, requires accurate identification of beneficiaries, accountability and transparency in the movement of goods, and full reconciliation. Some States such as Chhattisgarh are at an advanced stage, and have a software platform that is already in use. Other States such as Gujarat are at the stage of advanced pilots. Most States are yet to start implementing comprehensive technology solutions in PDS. Given the importance of States having the flexibility in choosing their partners and implementation, and to ensure that the new design does not create roadblocks for those who are already on the path of computerization, partnering with PDSN will be strictly voluntary for States.
REFERENCE: Department of Food & Public Distribution (http://dfpd.nic.in)
Name: Vikram Singh
The article presented here is related to the topic: Public DistributionSystem- objectives, functioning, limitations, revamping, under General Studies Paper III.
Challenges faced by PDS today
With a network of around 5 lakh fair price shops (FPS) distributing commodities worth more than Rs 30,000 crore annually to the PDS in India is perhaps the largest distribution network of its kind in the world. However, there are huge challenges faced by the PDS across the country.
Challenges
In 2008, an study for TPDS was carried out by National Institute of Smart Government covered various aspects of the functional areas with the perspective of People, Process and Technology. Challenges in the following six key functional areas were studied: allocation, movement, storage, finance, licensing and regulation of FPSs, and grievance redressal.
The challenges noted were:
Allocation
2. Non availability / delay of utilization information to the Centre from States
2. Non - availability / delay of closing balance details and updated card status at State level from the districts, block and FPS levels.
3. Inaccurate data reporting by FPS
4. Longer time taken for allocation cycle
Movement
1. Absence of truck tracking system leading to delayed delivery, diversions, siphoning etc.
2. Non-standard transportation rates
3. Cartel formation by transporters
4. Late submission of demand drafts/cash by FPS for lifting leads to sub optimal route planning
Storage and Quality Control (QC)
1. Non-availability of stock positions in few states leads to inappropriate allocation and excess stock build up at intermediary storage points
2. Poor quality of packaging leads to loss of food grains
3. Extensive use of hooks leads to spillage.
4. Insufficient godown capacity of intermediate storage points result in multiple shipments
5. Temperature fluctuations due to weather leads to variations in weight of food grains
6. Loss of food grains due to infestation
7. Manpower shortage leads to delay in dispatches and non compliance to policies.
Finance
1. Poor financial condition of FPS.
2. Cost and time incurred on preparation of multiple DDs by FPS results in increased financial burden on the FPS.
Licensing and Regulation
1. Inadequate monitoring leading to diversion of stock
2. Selection of inappropriate dealer leading to malpractices
3. Lack of standard selection procedure and guidelines
4. Difficulty in identification of elapsed licenses
Grievance Redressal
1. 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
2. The service level agreements for grievance redressal are not clearly defined
3. Bogus complaints result in wastage of officials time
4. Lack of integration between various complaint and registration channels leads to multiple actions at different levels
Based on the above study, a scheme for computerization of TPDS operations was taken up by the Department of Food and Public Distribution.
Apart from the challenges identified above, there remains the fundamental challenge of having an accurate database of eligible beneficiaries. The existing databases are plagued with inclusion and exclusion errors in identification of beneficiaries and fake ration cards.
Choice and convenience for the beneficiary has not been adequately addressed in the present enabled with closed circuit TV monitoring on a trial basis. An online application has been made available to consumers to register their complaints through a website.
Analysis of PDS System in present scenario
The Public Distribution System (PDS) provides subsidized food and fuel to a large number of people in India. Of all the social safety net programs of Government of India and various State Governments, the subsidies on food and fuel are perhaps the most important ones. Affordable food is a source of sustenance for a large segment of the population; affordable kerosene is extensively used for cooking and lighting by the poor.
Given the importance of food and kerosene for sustenance, it is not surprising that these subsidies account for a large fraction of the total subsidy expenditure of the Government of India. However, deficiencies in the implementation of PDS have plagued the system. In many cases, the true beneficiaries of these subsidies suffer due to wholesale problems such as large-scale pilferage and diversion, and retail level problems such as duplicates and ghost beneficiaries, wrongful exclusion and inclusion, availability and quality of the commodities, as well as Fair Price Shop level pilferage. While implementation varies from state to state, there are a number of areas in the PDS system which requires immediate attention.
A number of suggestions have been made over time to reform PDS. These reforms include:
1. Grassroots level transparency that include increased social audits, painting of PDS offtake on walls of the FPS shops, painting of trucks;
2. Beneficiary empowerment through the use of coupons, or technology such as smartcards, or even direct cash transfers;
3. Monitoring the movement of goods through the use of technology, such as GPS tracking of trucks; and
4. Increased monitoring, supervision, accountability, and transparency.
Along with the reforms suggested above, the following features also need to be accounted for in order to attempt a comprehensive solution for deficiencies in PDS:
1. A solution that is incentive-compatible for all stakeholders, so that they benefit by participating in the system, rather than trying to benefit through subverting the system. For example, commission rates for FPS owners should be set to ensure that they earn adequate returns on their investment;
2. Strengthening the public provision of the State with appropriate use of technology, to bring it on par with best practises in the field. Strategic control needs to be retained within Government at all times;
3. A token-agnostic technology solution that can accept physical coupons, smartcards, electronic coupons, and even facilitate direct cash transfers where different states may choose from different solutions based on their own requirements;
4. Provide beneficiaries maximum choice:
1. choice of location;
1. choice of the mix of commodities;
1. choice to purchase commodities in convenient quantities, and in any number of instalments; and
1. choice to purchase commodities or receive a direct transfer of subsidy.
5. Aadhaar can be used in PDS to simplify a number of processes:
1. Simplification of Ration Card registration, so that beneficiaries can apply for a Ration Card conveniently;
1. Cleaning up the beneficiary database;
1. Use of Aadhaar authentication as appropriate; and
1. State Governments can use Aadhaar Payments Bridge and Aadhaar Enabled Payments Systems to channel subsidy funds for approved commodities to Aadhaar-enabled Bank Accounts.
Keeping in view the proposed National Food Security Bill it is imperative to undertake these reforms at the earliest.
Best practices from States using IT in PDS
A summary of the best practices in TPDS implementation as reported by some States is as follows:
1. Creation of central beneficiary database Chhattisgarh, Gujarat, Tamil Nadu, etc.
1. Cleaning up of databases through use of biometrics Andhra Pradesh, Madhya Pradesh, etc.
1. Maintenance of Ration Card database using web based application software Chhattisgarh, Gujarat, Tamil Nadu, etc
1. Issuance of TPDS commodities through:
1. Bar-coded Ration card Chhattisgarh, Gujarat, etc.
1. Smart Card based ration cards Andhra Pradesh, Chandigarh, Haryana, Orissa, etc.
1. Food Coupons Bihar, Gujarat, Madhya Pradesh, Orissa, etc.
1. Online biometric verification before transaction Gujarat.
1. Automated allocation every month using web-based application Chhattisgarh, Tamil Nadu, Gujarat etc.
1. Generation of delivery order, truck challans, receipts and movement of commodities between Distribution Centers are being carried out through an application software Chhattisgarh.
1. Automated assessment of transportation requirements and optimum utilization of trucks Chhattisgarh.
1. Use of GPS for tracking movement of trucks Tamil Nadu.
1. Availability of PDS related information on website such as list of Ration Card holders, FPS list, allocation, month-wise lifting and sales by FPS etc. Chhattisgarh, Tamil Nadu.
1. SMS alerts sent to registered beneficiaries / citizens, vigilance committees for a designated FPS whenever PDS commodities are dispatched from a godown Chhattisgarh, etc.
1. Grievance redressal system and availability of information regarding F&CS department through toll-free numbers, website Chhattisgarh, Tamil Nadu, etc.
Lessons from use of IT in PDS in states
After various deliberations and discussions, the Task Force observed the following:
1. There is wide variance between states in terms of the extent of computerization undertaken in PDS. Each state has approached computerisation in a different way and has achieved different degrees of success based on a variety of factors;
1. Even in states that have undertaken computerization efforts, wide variation in their strategy, focus and intent exists. Many efforts have been piecemeal and on a pilot basis and their scalability is yet to be tested;
1. A few states have computerized the supply chain (from Godown to Fair Price Shop) while others have used technology to address last mile delivery issues (delivery to the PDS beneficiary). Hence both upstream and downstream computerization efforts in the PDS chain have been undertaken;
1. NIC has played a major role in computerization of PDS efforts in various states. They are in the process of combining their software developed for various states into a common software platform for PDS;
1. There is a need to make a comprehensive As-Is study in all the States to access the level of computerization across the country in order to have a complete view of the extent of leverage of technology in the PDS delivery mechanism;
1. An IT strategy is much more than just developing common software. It requires an institutional mechanism to undertake the complex task of conceptualizing, developing and maintaining the IT systems on a continuous basis.
Technology, while not a panacea for solving the problems of PDS, is crucial in improving the efficiency of PDS and bringing it to the levels of optimum productivity. Targeting, as is done today, requires accurate identification of beneficiaries, accountability and transparency in the movement of goods, and full reconciliation. Some States such as Chhattisgarh are at an advanced stage, and have a software platform that is already in use. Other States such as Gujarat are at the stage of advanced pilots. Most States are yet to start implementing comprehensive technology solutions in PDS. Given the importance of States having the flexibility in choosing their partners and implementation, and to ensure that the new design does not create roadblocks for those who are already on the path of computerization, partnering with PDSN will be strictly voluntary for States.
REFERENCE: Department of Food & Public Distribution (http://dfpd.nic.in)
Name: Vikram Singh
PUBLIC DISTRIBUTION SYSTEM :
PUBLIC DISTRIBUTION SYSTEM :
Definition:
The system of the government and its agencies supplying the essential commodities to the consumers at reasonable prices is called the Public Distribution System (PDS).
History:
The institution of fair price shops came into existence during the Second World War. Earlier, the Government had made arrangements to open grain shops in different industrial and rural areas for the distribution of specified quantities of food grains at subsidised rates to labourers.
To stabilise the prices of food grains. the Government organised fair price shops where card-holders could make purchases at fixed prices. Thus, the Government tried to influence the priccs in the open market.
The Central Government formulated a scheme in 1956 for the extensive sale of food grains through fair price shops. All the State governments were asked to open a large number of fair price shops mainly for the distribution of rice and wheat. The total distribution of food grains in 1956 from the Government stocks was 2.1 million tonnes.
The amount of grains thus distributed increased significantly after 1964 because of poor agricultural production over the three years from 1964-65 to 1966-67. In 1965, statutory rationing (rationing as per law) where the quota of sales for individuals is set by the Government was introduced in four major cities and later extended to a further 10 cities in the country. The family ration card system was also introduced.
WORKING OF THE PUBLIC DISTRIBCTTION SYSTEM (PDS)
The farmers producing the food grains are distributed throughout the length and breadth of the country. So also, the consumers are geographically distributed. Most of the consumption points are the large townships and urban areas where food is not grown. The food grown by the farmers will have to be supplied to these consumption centres. There are both rich and poor people, and in the case of an increase in the prices, it is the latter who stand to suffer. The trading community usually takes care of assembling the crops grown by the farmers and marketing them to the consumers. But, left to themselves, the traders indulge in speculative activities i.e. they speculate (expect) the prices to increase during the nonharvest season because of low availability of foodgrains. This goes by
the simple principle in economics which says that when the demand for a commodity is more than its supply, the price of that commodity increases. Hence, there is a possibility of the traders hoarding (stocking) the commodity and thus creating an artificial scarcity in the market. This leads to an increase in the prices of food grains when the traders release their stock, thus enabling them to make higher profits. It is here that the Government intervenes to prevent such a situation and comes to the rescue of the consumers.
Role of State:
The Government agencies which are involved in the PDS are the Food Corporation of India and the Food and Civil Supplies Corporations for the State Governments. They buy the food grains grown by the farmers usually at the regulated markets. They store these grains and transport them to the distribution (off take) points. From these points, the retailers (Fair Price Shops) buy the commodities and ultimately sell the grains to the consumers. The Central Government fixes the quota month wise for each state regarding the quantity of food grains which can be sold through the PDS. This quota depends upon the needs of the population of the state and its contribution to the central pool of food stocks. Rice and wheat are the two commodities which have been given maximum emphasis for the sale of procurement and distribution through the PDS.
How the PDS helps the consumers:
There are two important concepts.
1)The Market price
2)The Issue Price.
1)Market price :
It is the price of a commodity prevailing in the open market. We usually concentrate on the wholesale price in the open market. This is because the retail price depends upon the wholesale price.
2)The Issue price :
It is the price at which the government releases (sells) its stock to the retailers (Fair price shops) for distribution. Here again, the price we pay in our shop will be more than the issue price itself. The information on prices will usually be converted to Index numbers (Price Indices) to facilitate a better comparison hetween different points of time.
The benefit to the consumers:
* The benefit to the consumers due to the PDS can be realised when we compare the movement of wholesale {open market) prices and issue .
* The benefits not only include the availabiliy of foodgrains at lower prices but also include availability of the commodities throughout the year.
* The PDS in India is recognised as a permanent feature of the strategy to control prices, to reduce fluctuation in prices and to achieve an equitable distribution of essential commodities i.e. all people can have access to buying the essential items at reasonable prices.
* The PDS involves a very good co-ordination between production, procurement, transportation, storage and distribution.
Commodities recognised for sale by PDS :
The Government of India has recognised the following commodities as essential items reflecting the needs of the common man.
1 Cereals-rice and wheat
2 Sugar
3 Edible Oil
4 Soft Coke (for fuel)
5 Kerosene
6 Controlled Cloth
7 Tea
8 Coffee
9 Toilet and Washing Soaps
10 Match Boxes
11 Exercise Books for Children
However, the Central Government has confined its responsibilities to the seven commodities viz., wheat, rice, sugar, edible oil, kerosene, soft coke and cloth. These seven commodities form the core of the PDS. It is not necessary to standardise the commodities sold throughout the country through the PDS because the needs of different states will be different. Hence, we see that some State Governments are distributing a large number of essential commodities through fair price shops. The Central Government also helps the State Governments in acquiring many commodities of common use like razor blades, toilet soaps, cycles, and tubes, etc., at wholesale prices for distributing through the fair price shops.
The working of the PDS is periodically reviewed in consultation with the State Governments. At the Central Government level, an Advisory Council on the Public Distribution System has been constituted to review its working from time to time. All the State Governments have also established such Advisory Councils at district and tehsil levels.
Expansion of the PDS has been an important point of action in the New 20-point programme. Special emphasis is laid on increasing the number of fair price shops in the areas which have not been sufficiently served by the PDS. Hence, the expansion of PDS is supplementary to the poverty alleviation programmes.
FAIR PRICE SHOPS :
As the name itself indicates, a fair price shop is one in which the commodities are sold at reasonable and fixed prices. As far as possible, the Government recognises the co-operative stores as fair price shops. However, many private traders are also permitted to sell the commodities through the PDS by being recognised as fair price shops by the Government.
The number of fair price shops increased from 2.39 lakhs in March 1979 to 3.15 lakhs in January, 1985 .These fair price shops are scattered over both the urban and rural areas. 'Thus all sections of society can derive benefits from them. As was mentioned earlier, several essential commodities are being sold by the fair price shops. The more important of these commodities are food grains, sugar, edible oil, kerosene oil and cheaper varieties of cloth.
In our country there is a system of rationing followed for distribution of commodities by the fair price shops. In fact, they are more popularly called 'ration shops'. Any person or family willing to buy commodities from the ration shops should possess a 'ration card'. The ration card which serves as a permit will be issued only by the Directorate of Food and Civil Supplies of the concerned State Government. On application to the Directorate, a ration card is issued to a family. The family is also referred to the particular shop from where they can buy their supplies. All families living in the jurisdiction of a particular office (Directorate) are eligible to become ration card holders.
The major advantage of buying your requirements from a ration shop:
* It is that you can get the commodities at lower prices as compared to buying the same in the open market (any other shop).
* The prices at which these commodities are sold in the ration shops do not fluctuate as much as they do in the other shops. For example, the price of edible oils increases during the festive season in other shops, while in the ration shop it does not. Hence you are assured of your quota of commodities at stable prices.
* The rationing system has been particularly helpful to the poorer sections of society.
* The poor spend a very large portion of their income on food articles. So, when these commodities are available to them at lower prices, they will be benefitted.
* Further, because the ration shop network is fairly widespread, they can have access to these commodities close to their homes.
Thus, the Government's policy relating to the Public Distribution System and the fair price,shops go together. This policy has helped all sections of the population to avail of essential commodities at stable prices.
FOOD SUBSIDIES :
Definition:
A subsidy is that component of the total price which a buyer need not pay. Food subsidy is one helps the consumer buy his food at a cheaper rate than what he would have actually paid for.
Subsidies are usually awarded by the Government, either Central or State. The main intention of a subsidy is to help the buyer purchase his requirements at cheaper prices. In fad, subsidies are sometimes are sometimes also used to encourage the consumption of some commodities. Examples of such subsidised products include new commodities sold in the market or indigeneously produced goods as against imported ones. Subsidies may come either in the form of absorption of certain costs by the Government or in the form of cash.
e.g. You may have observed that during the loan melas, when loans are given to poor people, it will usually be in the form of providing productive assets like sewing machines, etc. Out of the total loan of Rs. 5000 granted, Rs. 1500 will be subsidy and the remaining Rs. 3500 will be the loan component.
The other form of subsidy may be in the form of non-transfer of some costs to the consumer.
e.g. The Government may incur heavy costs in transporting the goods from one place to another, but will not include these costs in the prices it fixes for the consumers. Most of the public service utilities you consume-such as drinking water, bus transport, electricity, etc., are subsidised in this form.
Buying procedure:
The Government has to first buy the commodities to build up its stock. The procedure of buying stocks by the Government through its agent i.e., the Food Corporation of India (FCI) is called 'procurement. The foodgrains are procured by the FCI from either the open market or collection in terms of some compulsory sales by the millers. The price at which FCI buys the foodgrains is called 'procurement price' .Procurement prices are fixed by the Government of India. The prices at which different commodities like rice, wheat, coarse grains, etc. are procured will be different.
A matter of policy, the Government announces the procurement prices for different commodities at the beginning of the sowing season. Hence, if we closely observe, the procurement prices for kharif crops (June to November) are announced in June. while those for rabi crops (October-November and March-April) are announced in November.Such an announcement of procurement prices in the beginning of a crop season has a favourable impact on the producers. This is because the farmers are aware that this is the minimum price at which they have to sell their produce.
The procurement price is fixed according to the recommendations of an advisory body called Commission on Agricultural Costs and Prices. This body was formerly known as the Agricultural Costs and Prices Commission. This Commission takes into account the average cost of production of the crop (cost per quintal) for its recommendations of procurement prices.
In addition to the payment of procurement price, the FCI has to spend a huge amount of money as incidentals. These include the following:
1 Obligatory charges (Mandi charges, sales tax, cost of gunny bags)
2 Storage and interest charges
3 Handling charges (labour, internal movements etc.)
4 Establishment charges
5 Other miscellaneous charges
The FCI also incurs costs on the following items of distribution.
1 Freight
2 Interest
3 Transit and storage loss .
4 Handling expenses at the godowns
5 Administrative overheads
Thus you see, the total cost of procurement includes
a) Procurement price
b) Procurement incidentals and
c) Distribution incidentals
When you add these three, you arrive at the cost of procurement (per tonne or quintal) which is called the 'Economic Cost'.
The difference between the 'Economic' cost of procurement and the issue price of a commodity is what is considered as 'Consumer Subsidy'. The benefit of this subsidy directly goes to the consumers.
Buffer Stock:
Another important component of food subsidy is the expenses incurred on maintaining the buffer stock of grains. In very simple terms "Buffer Stock" is the total quantity of grains held by the Government agencies, mainly the Food Corporation of India,to meet any emergency requirements of foodgrains during times of shortage of production.
For instance, in the year 1987-88, when the entire country was affected by drought, there was a shortfall in the production of foodgrains to the tune of about 20 million tonnes. Now the buffer stock of foodgrains available in India (about 23.5 million tonnes at the beginning of this year) will be used to make up this shortage.
Uses Of Buffer Stock:
* This buffer stock is needed to stabilise the availability of foodgrains in the country as well as to stabiIise their prices.
* Maintaining these buffer stocks involves costs to the Government.
* These costs include, cost of money used (interest), storage charges, administrative costs, etc.
* These costs are almost entirely borne by the Government. These are called "Carrying costs of buffer stock". In the year 1981-82, the Government spent a total of Rs. 154.81 crores to maintain the buffer stock.
GLOSSARY :
Buffer Stock : Stock of essential commodities held by the Government to meet emergency situations.
Procurement price : The price at which the Food Corporation of India buys the food grains.
Consumer Subsidy : The difference between the Economic Cost of procurement and the Issue Price of a Commodity is
Consumer Subsidy: The non-transfer of certain costs to the consumer such as procurement and distribution incidentals by the Government forms the consumer subsidy.
Freight : Goods transported by commercial transport
Issue Price : The price at which the Government releases its stock.
Market Price : The price prevailing in the open market (wholesale).
Price Index : An indicator of the percentage change in price with respect to a base period. Procurement Price : The procedure of buying stock by the Government through its agent (Food Corporation of India (FCI) is called procurement price.
Public Distribution System: The system of the Government distributing essential (PDS) commodities through fair price shops.
Procurement : The process of Government buying commodities from producers to supply them to consumers through public Distribution System
Rationing : The system of quota of essential commodities permitted to be bought under the Public Distributioil System
TARGETED PUBLIC DISTRIBUTION SYSTEM(TPDS)
Rationing was first introduced in India in 1939 in Bombay by the British Government as a measure to ensure equitable distribution of food-grains to the urban consumers in the face of rising prices due to increased demand from the armed forces.In 1943, the First Food-grain Policy Committee set up by the Government recommende continuation of rationing, maintenance of reserve stocks and extension of rationing to rural areas also.
From the first phase of rationing of food-grains in short supply, the system evolved into the present day Public Distribution System (PDS) in the mid 1960s as the Government envisaged an elaborate PDS as a necessary part of its strategy to boost agricultural production in selected areas through infrastructural investment, technological inputs and price incentives to farmers through government intervention in the food-grain markets.
This second phase, characterized by near self-sufficiency in food-grains production, holding of huge buffer stocks of food-grains by the government and rapid expansion of the network of distribution outlets deep into the rural areas of the country has continued till the present day.
The Public Distribution System, however, has failed in translating the macro-level selfsufficiency in food-grains achieved by the country into micro-level household food security for the poor in the country. In a system that allows access to all, the rich and the poor alike, the quantum supplied by the PDS to each household forms only a small portion of the familys total requirement. Increases in the Minimum Support Price over the years, considered necessary by the Government to keep up agricultural production, has led to corresponding increases in consumer prices in the PDS, adversely affecting the economic access of the poor to the PDS food-grains. The holding of huge buffer stocks through a highly centralized Food Corporation of India has led to enormous costs of storage and transportation, which have to be borne by the Government.
The importance of an effective Public Distribution System that ensures availability of food at affordable prices at the household level for the poor can hardly be over emphasised. The PDS as it stood earlier, however, was widely criticized for its failure to serve the population below the poverty line, its urban bias, negligible coverage in the States with the highest concentration of the rural poor and the lack of transparent and accountable arrangements for delivery. Realising this, the Governmen streamlined the PDS by issuing special cards to families Below Poverty Line (BPL)
and selling food-grains under the PDS to them at specially subsidized prices with effectfrom June 1997.
The Targeted Public Distribution System (TPDS):
Poor family was originally entitled to 10 kgs of food-grains per month at specially subsidized prices and this was likely to benefit about 6 crore (i.e. 60 million) poor families. The identification of the poor is done by the States as per the state-wise poverty estimates of the Planning Commission. These estimates regarding the proportion and the number of the poor in each state are based on the methodology developed by the Expert Group chaired by late Prof. Lakadwala. The policy thrust is to include only the really poor and vulnerable sections of the society, such as the landless agricultural labourers, marginal farmers, rural artisans/craftsmen such as potters, tapers, weavers, blacksmiths, carpenters, etc, in the rural areas and slum dwellers and persons earning their livelihood on a daily basis in the informal sector like porters, rickshaw pullers and hand cart pullers, fruit and flower sellers on the pavements, etc. in the urban areas.
Keeping in view the consensus on increasing the allocation of food-grains to BPL category and to better target the food subsidy, the Government of India increased the allocation to BPL families from 10 kgs. to 20 kgs. of food-grains per family per month on April 1, 2000. The allocation for the Above Poverty Line (APL) population was retained at the earlier level.The number of BPL families was increased in the official records with effect from December 1, 2000, by shifting the base from the earlier population projection of 1995 to the population projections of the Registrar General as on March 1, 2000. This change has resulted in raising the number of BPL families to 652.03 lakhs as against 596.23 lakhs originally estimated when the TPDS was introduced in June 1997. The increased level of allocation of food-grains for BPL category is about 147 lakh tonnes per annum.
In order to reduce the excess stocks lying with the Food Corporation of India, the Government initiated the following measures under the TPDS with effect from July 12, 2001:
The BPL allocation of food grains was increased from 20 kgs. to 25 kgs. Per family per month with effect from July 2001 and the issue price for BPL families was fixed at Rs. 4.15 per kg. of wheat and Rs. 5.65 per kg. of rice.
Reference : B.Udhayakumar
Ignou material
Definition:
The system of the government and its agencies supplying the essential commodities to the consumers at reasonable prices is called the Public Distribution System (PDS).
History:
The institution of fair price shops came into existence during the Second World War. Earlier, the Government had made arrangements to open grain shops in different industrial and rural areas for the distribution of specified quantities of food grains at subsidised rates to labourers.
To stabilise the prices of food grains. the Government organised fair price shops where card-holders could make purchases at fixed prices. Thus, the Government tried to influence the priccs in the open market.
The Central Government formulated a scheme in 1956 for the extensive sale of food grains through fair price shops. All the State governments were asked to open a large number of fair price shops mainly for the distribution of rice and wheat. The total distribution of food grains in 1956 from the Government stocks was 2.1 million tonnes.
The amount of grains thus distributed increased significantly after 1964 because of poor agricultural production over the three years from 1964-65 to 1966-67. In 1965, statutory rationing (rationing as per law) where the quota of sales for individuals is set by the Government was introduced in four major cities and later extended to a further 10 cities in the country. The family ration card system was also introduced.
WORKING OF THE PUBLIC DISTRIBCTTION SYSTEM (PDS)
The farmers producing the food grains are distributed throughout the length and breadth of the country. So also, the consumers are geographically distributed. Most of the consumption points are the large townships and urban areas where food is not grown. The food grown by the farmers will have to be supplied to these consumption centres. There are both rich and poor people, and in the case of an increase in the prices, it is the latter who stand to suffer. The trading community usually takes care of assembling the crops grown by the farmers and marketing them to the consumers. But, left to themselves, the traders indulge in speculative activities i.e. they speculate (expect) the prices to increase during the nonharvest season because of low availability of foodgrains. This goes by
the simple principle in economics which says that when the demand for a commodity is more than its supply, the price of that commodity increases. Hence, there is a possibility of the traders hoarding (stocking) the commodity and thus creating an artificial scarcity in the market. This leads to an increase in the prices of food grains when the traders release their stock, thus enabling them to make higher profits. It is here that the Government intervenes to prevent such a situation and comes to the rescue of the consumers.
Role of State:
The Government agencies which are involved in the PDS are the Food Corporation of India and the Food and Civil Supplies Corporations for the State Governments. They buy the food grains grown by the farmers usually at the regulated markets. They store these grains and transport them to the distribution (off take) points. From these points, the retailers (Fair Price Shops) buy the commodities and ultimately sell the grains to the consumers. The Central Government fixes the quota month wise for each state regarding the quantity of food grains which can be sold through the PDS. This quota depends upon the needs of the population of the state and its contribution to the central pool of food stocks. Rice and wheat are the two commodities which have been given maximum emphasis for the sale of procurement and distribution through the PDS.
How the PDS helps the consumers:
There are two important concepts.
1)The Market price
2)The Issue Price.
1)Market price :
It is the price of a commodity prevailing in the open market. We usually concentrate on the wholesale price in the open market. This is because the retail price depends upon the wholesale price.
2)The Issue price :
It is the price at which the government releases (sells) its stock to the retailers (Fair price shops) for distribution. Here again, the price we pay in our shop will be more than the issue price itself. The information on prices will usually be converted to Index numbers (Price Indices) to facilitate a better comparison hetween different points of time.
The benefit to the consumers:
* The benefit to the consumers due to the PDS can be realised when we compare the movement of wholesale {open market) prices and issue .
* The benefits not only include the availabiliy of foodgrains at lower prices but also include availability of the commodities throughout the year.
* The PDS in India is recognised as a permanent feature of the strategy to control prices, to reduce fluctuation in prices and to achieve an equitable distribution of essential commodities i.e. all people can have access to buying the essential items at reasonable prices.
* The PDS involves a very good co-ordination between production, procurement, transportation, storage and distribution.
Commodities recognised for sale by PDS :
The Government of India has recognised the following commodities as essential items reflecting the needs of the common man.
1 Cereals-rice and wheat
2 Sugar
3 Edible Oil
4 Soft Coke (for fuel)
5 Kerosene
6 Controlled Cloth
7 Tea
8 Coffee
9 Toilet and Washing Soaps
10 Match Boxes
11 Exercise Books for Children
However, the Central Government has confined its responsibilities to the seven commodities viz., wheat, rice, sugar, edible oil, kerosene, soft coke and cloth. These seven commodities form the core of the PDS. It is not necessary to standardise the commodities sold throughout the country through the PDS because the needs of different states will be different. Hence, we see that some State Governments are distributing a large number of essential commodities through fair price shops. The Central Government also helps the State Governments in acquiring many commodities of common use like razor blades, toilet soaps, cycles, and tubes, etc., at wholesale prices for distributing through the fair price shops.
The working of the PDS is periodically reviewed in consultation with the State Governments. At the Central Government level, an Advisory Council on the Public Distribution System has been constituted to review its working from time to time. All the State Governments have also established such Advisory Councils at district and tehsil levels.
Expansion of the PDS has been an important point of action in the New 20-point programme. Special emphasis is laid on increasing the number of fair price shops in the areas which have not been sufficiently served by the PDS. Hence, the expansion of PDS is supplementary to the poverty alleviation programmes.
FAIR PRICE SHOPS :
As the name itself indicates, a fair price shop is one in which the commodities are sold at reasonable and fixed prices. As far as possible, the Government recognises the co-operative stores as fair price shops. However, many private traders are also permitted to sell the commodities through the PDS by being recognised as fair price shops by the Government.
The number of fair price shops increased from 2.39 lakhs in March 1979 to 3.15 lakhs in January, 1985 .These fair price shops are scattered over both the urban and rural areas. 'Thus all sections of society can derive benefits from them. As was mentioned earlier, several essential commodities are being sold by the fair price shops. The more important of these commodities are food grains, sugar, edible oil, kerosene oil and cheaper varieties of cloth.
In our country there is a system of rationing followed for distribution of commodities by the fair price shops. In fact, they are more popularly called 'ration shops'. Any person or family willing to buy commodities from the ration shops should possess a 'ration card'. The ration card which serves as a permit will be issued only by the Directorate of Food and Civil Supplies of the concerned State Government. On application to the Directorate, a ration card is issued to a family. The family is also referred to the particular shop from where they can buy their supplies. All families living in the jurisdiction of a particular office (Directorate) are eligible to become ration card holders.
The major advantage of buying your requirements from a ration shop:
* It is that you can get the commodities at lower prices as compared to buying the same in the open market (any other shop).
* The prices at which these commodities are sold in the ration shops do not fluctuate as much as they do in the other shops. For example, the price of edible oils increases during the festive season in other shops, while in the ration shop it does not. Hence you are assured of your quota of commodities at stable prices.
* The rationing system has been particularly helpful to the poorer sections of society.
* The poor spend a very large portion of their income on food articles. So, when these commodities are available to them at lower prices, they will be benefitted.
* Further, because the ration shop network is fairly widespread, they can have access to these commodities close to their homes.
Thus, the Government's policy relating to the Public Distribution System and the fair price,shops go together. This policy has helped all sections of the population to avail of essential commodities at stable prices.
FOOD SUBSIDIES :
Definition:
A subsidy is that component of the total price which a buyer need not pay. Food subsidy is one helps the consumer buy his food at a cheaper rate than what he would have actually paid for.
Subsidies are usually awarded by the Government, either Central or State. The main intention of a subsidy is to help the buyer purchase his requirements at cheaper prices. In fad, subsidies are sometimes are sometimes also used to encourage the consumption of some commodities. Examples of such subsidised products include new commodities sold in the market or indigeneously produced goods as against imported ones. Subsidies may come either in the form of absorption of certain costs by the Government or in the form of cash.
e.g. You may have observed that during the loan melas, when loans are given to poor people, it will usually be in the form of providing productive assets like sewing machines, etc. Out of the total loan of Rs. 5000 granted, Rs. 1500 will be subsidy and the remaining Rs. 3500 will be the loan component.
The other form of subsidy may be in the form of non-transfer of some costs to the consumer.
e.g. The Government may incur heavy costs in transporting the goods from one place to another, but will not include these costs in the prices it fixes for the consumers. Most of the public service utilities you consume-such as drinking water, bus transport, electricity, etc., are subsidised in this form.
Buying procedure:
The Government has to first buy the commodities to build up its stock. The procedure of buying stocks by the Government through its agent i.e., the Food Corporation of India (FCI) is called 'procurement. The foodgrains are procured by the FCI from either the open market or collection in terms of some compulsory sales by the millers. The price at which FCI buys the foodgrains is called 'procurement price' .Procurement prices are fixed by the Government of India. The prices at which different commodities like rice, wheat, coarse grains, etc. are procured will be different.
A matter of policy, the Government announces the procurement prices for different commodities at the beginning of the sowing season. Hence, if we closely observe, the procurement prices for kharif crops (June to November) are announced in June. while those for rabi crops (October-November and March-April) are announced in November.Such an announcement of procurement prices in the beginning of a crop season has a favourable impact on the producers. This is because the farmers are aware that this is the minimum price at which they have to sell their produce.
The procurement price is fixed according to the recommendations of an advisory body called Commission on Agricultural Costs and Prices. This body was formerly known as the Agricultural Costs and Prices Commission. This Commission takes into account the average cost of production of the crop (cost per quintal) for its recommendations of procurement prices.
In addition to the payment of procurement price, the FCI has to spend a huge amount of money as incidentals. These include the following:
1 Obligatory charges (Mandi charges, sales tax, cost of gunny bags)
2 Storage and interest charges
3 Handling charges (labour, internal movements etc.)
4 Establishment charges
5 Other miscellaneous charges
The FCI also incurs costs on the following items of distribution.
1 Freight
2 Interest
3 Transit and storage loss .
4 Handling expenses at the godowns
5 Administrative overheads
Thus you see, the total cost of procurement includes
a) Procurement price
b) Procurement incidentals and
c) Distribution incidentals
When you add these three, you arrive at the cost of procurement (per tonne or quintal) which is called the 'Economic Cost'.
The difference between the 'Economic' cost of procurement and the issue price of a commodity is what is considered as 'Consumer Subsidy'. The benefit of this subsidy directly goes to the consumers.
Buffer Stock:
Another important component of food subsidy is the expenses incurred on maintaining the buffer stock of grains. In very simple terms "Buffer Stock" is the total quantity of grains held by the Government agencies, mainly the Food Corporation of India,to meet any emergency requirements of foodgrains during times of shortage of production.
For instance, in the year 1987-88, when the entire country was affected by drought, there was a shortfall in the production of foodgrains to the tune of about 20 million tonnes. Now the buffer stock of foodgrains available in India (about 23.5 million tonnes at the beginning of this year) will be used to make up this shortage.
Uses Of Buffer Stock:
* This buffer stock is needed to stabilise the availability of foodgrains in the country as well as to stabiIise their prices.
* Maintaining these buffer stocks involves costs to the Government.
* These costs include, cost of money used (interest), storage charges, administrative costs, etc.
* These costs are almost entirely borne by the Government. These are called "Carrying costs of buffer stock". In the year 1981-82, the Government spent a total of Rs. 154.81 crores to maintain the buffer stock.
GLOSSARY :
Buffer Stock : Stock of essential commodities held by the Government to meet emergency situations.
Procurement price : The price at which the Food Corporation of India buys the food grains.
Consumer Subsidy : The difference between the Economic Cost of procurement and the Issue Price of a Commodity is
Consumer Subsidy: The non-transfer of certain costs to the consumer such as procurement and distribution incidentals by the Government forms the consumer subsidy.
Freight : Goods transported by commercial transport
Issue Price : The price at which the Government releases its stock.
Market Price : The price prevailing in the open market (wholesale).
Price Index : An indicator of the percentage change in price with respect to a base period. Procurement Price : The procedure of buying stock by the Government through its agent (Food Corporation of India (FCI) is called procurement price.
Public Distribution System: The system of the Government distributing essential (PDS) commodities through fair price shops.
Procurement : The process of Government buying commodities from producers to supply them to consumers through public Distribution System
Rationing : The system of quota of essential commodities permitted to be bought under the Public Distributioil System
TARGETED PUBLIC DISTRIBUTION SYSTEM(TPDS)
Rationing was first introduced in India in 1939 in Bombay by the British Government as a measure to ensure equitable distribution of food-grains to the urban consumers in the face of rising prices due to increased demand from the armed forces.In 1943, the First Food-grain Policy Committee set up by the Government recommende continuation of rationing, maintenance of reserve stocks and extension of rationing to rural areas also.
From the first phase of rationing of food-grains in short supply, the system evolved into the present day Public Distribution System (PDS) in the mid 1960s as the Government envisaged an elaborate PDS as a necessary part of its strategy to boost agricultural production in selected areas through infrastructural investment, technological inputs and price incentives to farmers through government intervention in the food-grain markets.
This second phase, characterized by near self-sufficiency in food-grains production, holding of huge buffer stocks of food-grains by the government and rapid expansion of the network of distribution outlets deep into the rural areas of the country has continued till the present day.
The Public Distribution System, however, has failed in translating the macro-level selfsufficiency in food-grains achieved by the country into micro-level household food security for the poor in the country. In a system that allows access to all, the rich and the poor alike, the quantum supplied by the PDS to each household forms only a small portion of the familys total requirement. Increases in the Minimum Support Price over the years, considered necessary by the Government to keep up agricultural production, has led to corresponding increases in consumer prices in the PDS, adversely affecting the economic access of the poor to the PDS food-grains. The holding of huge buffer stocks through a highly centralized Food Corporation of India has led to enormous costs of storage and transportation, which have to be borne by the Government.
The importance of an effective Public Distribution System that ensures availability of food at affordable prices at the household level for the poor can hardly be over emphasised. The PDS as it stood earlier, however, was widely criticized for its failure to serve the population below the poverty line, its urban bias, negligible coverage in the States with the highest concentration of the rural poor and the lack of transparent and accountable arrangements for delivery. Realising this, the Governmen streamlined the PDS by issuing special cards to families Below Poverty Line (BPL)
and selling food-grains under the PDS to them at specially subsidized prices with effectfrom June 1997.
The Targeted Public Distribution System (TPDS):
Poor family was originally entitled to 10 kgs of food-grains per month at specially subsidized prices and this was likely to benefit about 6 crore (i.e. 60 million) poor families. The identification of the poor is done by the States as per the state-wise poverty estimates of the Planning Commission. These estimates regarding the proportion and the number of the poor in each state are based on the methodology developed by the Expert Group chaired by late Prof. Lakadwala. The policy thrust is to include only the really poor and vulnerable sections of the society, such as the landless agricultural labourers, marginal farmers, rural artisans/craftsmen such as potters, tapers, weavers, blacksmiths, carpenters, etc, in the rural areas and slum dwellers and persons earning their livelihood on a daily basis in the informal sector like porters, rickshaw pullers and hand cart pullers, fruit and flower sellers on the pavements, etc. in the urban areas.
Keeping in view the consensus on increasing the allocation of food-grains to BPL category and to better target the food subsidy, the Government of India increased the allocation to BPL families from 10 kgs. to 20 kgs. of food-grains per family per month on April 1, 2000. The allocation for the Above Poverty Line (APL) population was retained at the earlier level.The number of BPL families was increased in the official records with effect from December 1, 2000, by shifting the base from the earlier population projection of 1995 to the population projections of the Registrar General as on March 1, 2000. This change has resulted in raising the number of BPL families to 652.03 lakhs as against 596.23 lakhs originally estimated when the TPDS was introduced in June 1997. The increased level of allocation of food-grains for BPL category is about 147 lakh tonnes per annum.
In order to reduce the excess stocks lying with the Food Corporation of India, the Government initiated the following measures under the TPDS with effect from July 12, 2001:
The BPL allocation of food grains was increased from 20 kgs. to 25 kgs. Per family per month with effect from July 2001 and the issue price for BPL families was fixed at Rs. 4.15 per kg. of wheat and Rs. 5.65 per kg. of rice.
Reference : B.Udhayakumar
Ignou material
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