Panel 1

Key Note

• PDS entitlement was at 67% of Indian population i.e. about 980mn people, however, the actual number of beneficiaries as per recent records stand at 786mn people representing about 50% the population. The number of beneficiaries is far less than the entitlement.
• The quantum of PDS distribution also raises questions. The distribution of 56Mn tonne represents only about 16 kg per person per annum as against the NFSA entitlement of about 5 kg per person. Even among the beneficiaries, number of people claiming PDS grains is very ow.
• Why are the number of beneficiaries and claimants low? is it due to reduction in requirement, improvement in standard of living or due to inefficiencies in the system?
• The delivery system has been improved and the shops are open for about 15 days in a month against a few days earlier.
• Mobility of labour is an issue
• Transaction cost of availing PDS benefit vs the benefit of PDS subsidy must be considered.
• A person has to give up per day wage of about Rs.500 to claim PDS of about 5kg at market rate. The cost is much higher than the benefit.
• We should
  • reduce transaction cost
  • address supply chain issues.
• complete monitoring from all the stages right from offtake form FCI to distribution is needed.

Panel Discussion

Impact of digitisation was discussed
We have moved to electronic enrolment and Aadhar based, data driven targeted identification of beneficiaries.
Initiatives like mobile ration shop and door to door delivery can be further explored.
GPS monitoring of transportation can contain leakages

The PDS benefit must reach the intended beneficiaries.
The system should also protect farmers from price fluctuations.
Policy actions must focus on i) reducing wastage, ii) better storage and iii) increasing productivity.
Public institutions should enhance transparency

Panel 2

• PDS system has adopted new technologies like GPS, IoT, Aadhar and blockchain.
• Procurement process faces a number of logistic complexities. Issues include poor infrastructure.
• The panel members highlighted the recently launched Anna Chakra scheme. The Union Minister of Consumer Affairs, Food and Public Distribution and New & Renewable Energy, Shri Pralhad Joshi launched ‘Anna Chakra’, the Public Distribution System (PDS) Supply chain optimisation tool and SCAN (Subsidy Claim Application for NFSA) portal a significant step towards modernizing the Public Distribution System and subsidy claim mechanisms of the States.
• “Anna Chakra” PDS Supply Chain optimization, spearheaded by Department of Food Public Distribution, is a landmark initiative to enhance the efficiency of the PDS logistics network across the country. Developed in collaboration with the World Food Programme (WFP) and Foundation for Innovation and Technology Transfer (FITT), IIT-Delhi, the project leverages advanced algorithms to identify optimal routes and ensure seamless movement of food grains across supply chain nodes. An operation of this magnitude involves a complex supply chain, relying on multiple stakeholders starting from farmers to Fair Price Shops. This makes the initiative unique which helps improve the speed and efficiency of the world’s largest food security program providing food safety net to 81 Crore beneficiaries. Besides improved efficiency and cost savings through the streamlined delivery routes reducing fuel consumption, time, and logistics costs, it also provides environmental benefits of lower carbon footprint due to reduced transportation-related emissions.
• SCAN (Subsidy Claim Application for NFSA) portal will provide for a single window submission of subsidy claims by states, claim scrutiny and approval by DFPD facilitating expeditious settlement process. The portal will ensure end-to-end workflow automation of all the processes for release and settlement of food subsidy using rule-based processing.
• India does not have much issues with the production of food grains and challenges lie in the supply chain side. System needs to adopt technology to curb leakages at each stage.
• Farmers can be encouraged to participate in collective processing and collective marketing.
• Leakage in PDS does not happen at a large scale, but instead it is widely distributed small scale leakages and hence difficult to address.
• Consumption based poverty has reduced in India however multi-dimentional poverty persists and impact of PDS system in ensuring food security needs to be analysed.