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Unit 10 - Public Distribution System and Food Security

The document outlines the Public Distribution System (PDS) in India, which aims to ensure food security by providing foodgrains at subsidized prices to the poor. It details the evolution of the PDS, including the introduction of the Targeted Public Distribution System (TPDS) and the Antyodaya Anna Yojana (AAY) to assist the most vulnerable populations. The document also discusses the central issue prices for foodgrains and the measures taken to strengthen the system and address its shortcomings.

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0% found this document useful (0 votes)
11 views15 pages

Unit 10 - Public Distribution System and Food Security

The document outlines the Public Distribution System (PDS) in India, which aims to ensure food security by providing foodgrains at subsidized prices to the poor. It details the evolution of the PDS, including the introduction of the Targeted Public Distribution System (TPDS) and the Antyodaya Anna Yojana (AAY) to assist the most vulnerable populations. The document also discusses the central issue prices for foodgrains and the measures taken to strengthen the system and address its shortcomings.

Uploaded by

Dhirrana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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UNIT 10 PUBLIC DISTRIBUTION SYSTEM AND

FOOD SECURITY
Structure

10.0 Objectives
10.1 Introduction
10.2 Background of Public Distribution (PDS) System
10.3 Central Issue Price (CIP) for Rice and Wheat
10.4 Antyodaya Anna Yojana (AAY)
10.5 Quantity of Foodgrains Issued under Targeted Public Distribution System (TPDS)
10.6 Implementation Related Shortcomings of TPDS
10.7 Measures Taken to Strengthen TPDS and Check Diversion of Foodgrains
10.8 Let Us Sum Up
10.9 Key Words
10.10 Some Useful Books / References
10.11 Answers / Hints to Check Your Progress

10.0 OBJECTIVES

After going through this unit, you should be in a position to:

 define the Public Distribution System (PDS) and discuss how an efficient PDS
ensures food security;
 learn about the central issue price (CIP) of foodgrains;
 discuss the Targeted Public Distribution System (TPDS) shortcomings of TPDS and
measures taken to strengthen TPDS; and
 explain how to check diversion of foodgrains.

10.1 INTRODUCTION

India’s food security policy has an important objective to ensure availability of foodgrains to
common and poor people at an affordable price. The policy has been successful in the sense
that foodgrains have been made available to the poor consumers living in remote and
inaccessible areas. The efficient PDS introduced in the country has ensured the food security
and nutritional requirements of the people. The PDS was introduced by the Government of
India with the assistance of State Governments as a system of management of scarcity and for

1
distribution of foodgrains and other items at cheaper prices to a large number of population
living in the different parts of the country.
Over the years, PDS has become important part of Government of India’s food policy and
economy. It is important to clarify that PDS is only supplemental in nature and is not
intended to provide the entire requirements of foodgrains or other commodities distributed
under this programme to a household or a section of society.
As mentioned above, PDS is operated jointly by the Central Government and State
Governments. The Central Government, through its nodal agency, the Food Corporation of
India, established under Act of Parliament in 1965, has assumed the responsibility of
procurement, storage and transportation of foodgrains to the State Governments. The
operational responsibility of Central Government includes allocation of monthly quota of
foodgrains to the State Governments and issue of the same to the States’ Food Supply
Departments. On the other hand, lifting of foodgrains from FCI’s godowns, distribution to
Fair Price Shops (FPS) and further distribution of foodgrains through FPS to consumers is the
responsibility of the State Governments.
In addition to this, identification of families below poverty line and very poor families, issue
of ration cards to different categories of beneficiaries and supervision and monitoring the
function of fair price shops is also being done by the State Governments. Under the Public
Distribution System, this has now been designated as Targeted Public Distribution System,
the commodities viz. wheat, rice, sugar and kerosene are being allocated to the State
Governments/Union Territories for distribution. Some of the State Governments and Union
Territories also distribute salt and match boxes etc. under TPDS.

10.2 BACKGROUND OF PUBLIC DISTRIBUTION SYSTEM

The Public distribution of essential commodities particularly foodgrains was introduced in


India during the inter-war period. In 1960, there was acute food scarcity in the country and it
was decided that essential commodities should be made available at cheaper prices to the
consumers in urban areas. Since then, the system has substantially contributed to check the
rising prices of foodgrains and ensured the availability of foodgrains particularly in urban and
semi-urban areas. Due to increase of foodgrains production as a result of green revolution, the
area of PDS was extended to villages, particularly, in tribal areas in 1970s and 1980s.

2
Up to 1992, Public Distribution System (PDS) was a general scheme for all consumers
without any specific target. However, in June, 1992, Revamped Public Distribution System
(RPDS) was launched in 1775 blocks of the country. From June, 1997, the Targeted Public
Distribution (TPDS) was introduced with a view to serve the population below poverty line
living in rural and urban areas. The consumers were divided in two categories below poverty
line and above poverty line based on certain norms prescribed by the Planning Commission.

The RPDS was launched to strengthen and streamline the PDS as well as to make available
foodgrains to consumers living in far-flung, hilly, remote and inaccessible areas. The areas
where Drought Prone Area Programme (DPAP), Integrated Tribal Development Project,
(ITDP) and Desert Development Programme were running were included in revamped PDS.
The prices of foodgrains in RPDS were kept Rs. 50 paise per kg. below the Central Issue
Price(CIP) and foodgrains up to 20 kgs. per month per ration card were issued.

In June, 1997, the Government of India decided to focus on the poor of the country and they
were supposed to be the main target for making available foodgrains at cheaper prices.
Therefore, the scheme was named as Targeted Public Distribution System (TPDS). Under
this programme, the States were required to identify the below poverty line population and
make fool proof arrangement for distribution of foodgrains to them through fair price shops at
affordable cheaper prices.
Initially, the scheme was formulated for the benefit of about 6 crores poor family for whom a
quantity of 72 lakh metric tonnes of foodgrains was allocated annually. The identification of
BPL population was done by the State Governments as per the State-wise poverty estimate of
the Planning Commission for 1993-94 based on the methodology of the “Expert Group on
Estimation of Proportion and Number of Poor” headed by Late Prof. Lakdawala. The
allocation of foodgrains to the State Governments/UTs was made on the basis of average
consumption in the past, i.e. average annual off take of foodgrains under the PDS during the
past 10 years at the time of introduction of TPDS.
In addition to this, transitory allocation to the tune of 103 lakh metric tone annually was also
made to States for distribution of foodgrains at subsidized prices to the above poverty line
(APL) population as it was considered that this segment of population should not be suddenly
deprived from cheaper foodgrains being distributed through fair price shops by the State
Governments.

3
Later on, it was requested by the State Governments that allocation of foodgrains to below
poverty line (BPL) families should be increased. Therefore, the Government of India
increased the allocation to BPL families from 10 kg. to 20 kg. of foodgrains per family per
month at 50 per cent of the economic cost. The allocation to APL families was made at
economic cost with effect from 1st April, 2000. The quantity of allocation to APL family was
retained at the same level as at the time of introduction of TPDS.
The number of BPL families has been increased with effect from 1st December, 2000 by
shifting the base to the population projections of the Registrar General as on 1st March, 2000
instead of the earlier population projection of 1995. With this increase, the total number of
BPL families are 652.03 lakh as against 596.23 lakh families originally estimated when
TPDS was introduced 1997.
Under these PDS schemes, the end retail price is fixed by the State Governments/UTs after
taking into consideration the margins of wholesalers/retailers, transportation charges, levies,
local taxes, etc.
Under the TPDS, the States are requested to issue foodgrains at a difference of not more than
50 paise per kg. over and above the CIP for BPL families. Flexibilities to State
Governments/UTs have been given in the matter of fixing the retail prices by removing the
restrictions of 50 paise per kg. over and above the CIP for distribution of foodgrains under
TPDS, except with respect to Antyodaya Anna Yojana where the end retail prices is to be
retained at Rs.2/- per kg. for wheat and at Rs.3/- per kg. for rice.

10.3 CENTRAL ISSUE PRICES (CIP) FOR RICE AND WHEAT

Wheat and Rice are issued by the Central Government from its Central Pool stock to State
Governments / UTs at uniform Central Issue Price (CIP) for TPDS. The CIPs of foodgrains
for TPDS are generally fixed below the economic cost. The Central Government incurs a
huge expenditure in form of food subsidy on this account. It is important to mention that as
a social obligation the foodgrains are supplied to below poverty line (BPL) families and
Antyodaya Anna Yojana beneficiaries at highly subsidized rates.
After streamlining and restructuring the Public Distribution System (PDS) with focus on poor
(Targetted PDS), two different CIPs have been fixed, one for the BPL families and another
for the APL families.

4
The CIPs of Rice and wheat issued under TPDS for various categories of beneficiaries are
given in Tables: 10.1 and 10.2.
Table 10.1: Central issue prices of common and Grade ‘A’ rice for TPDS
(Rs. per quintal)
With effect from Rice APL BPL AAY
1.12.97 Common 550 350 -
28.01.99 Grade ‘A’ 700
29.01.99 Common 700 350
31.03.2000 Grade ‘A’ 905
01.04.2000 Common 1135 590
27.07.2000 Grade 'A’ 1180
25.07.2000 Common 1087 565 300
11.07.2001 Grade ‘A’ 1130
12.07.2001 Common 795 565 300
31.03.2002 Grade ‘A’ 830
1.4.2002 Common 695 565 300
30.06.2002 Grade ‘A’ 730
1.7.2002 to till Common 795 565 300
date Grade ‘A’ 830
Source: Department of Food & Public Distribution, Govt. of India
The CIP of Common rice to APL families is applicable to J&K, H.P., North Eastern States,
Sikkim and Uttaranchal. From the Table 10.1, it is known that the CIPs of common and
Grade ‘A’ rice for BPL families are much less than that for the APL families. From the year
2000 till date, there is not much change in the CIP of common rice and the price has slightly
been reduced.
Table 10.2: Central Issue price of Wheat
(Rs. per quintal)
Effective from BPL APL AAP
1.12.97 250 450
29.1.99 250 650
1.4.99 250 682
1.4.2000 450 900
25.7.2000 415 830
12.7.2001 415 610 200
1.4.2002 415 510 200
1.7.2002 415 610 200
Source: Department of Food & Public Distribution, Govt. of India

5
From the table of CIP of wheat, it is clear that price for BPL families are much less than the
price for APL families. Further, the BPL price of wheat has not been increased from the year
2000 to till date.

Check Your Progress 1

1) What are the main aims and objectives of food policy of India?

…………………………………………………………………………………………
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2) What is the Targeted Public Distribution system?

…………………………………………………………………………………………
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3) What are the central issue prices of wheat and rice for BPL families?

…………………………………………………………………………………………
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…………………………………………………………………………………………
…………………………………………………………………………………………

10.4 ANTYODAYA ANNA YOJANA (AAY)

Since the introduction of Targeted Public Distribution (TPDS) in 1997, it was felt that there
are some poorest and destitute people in the country who are not able to purchase the
foodgrains even at BPL rate. They have very poor purchasing capacity as they have no fixed
income and are not able to get employment for most of the period of the year. It was revealed
that there is a segment of poorest among the BPL population in some hunger prone areas of
the country.

A National Sample Survey (NSS) pointed out that about 5 per cent of the total population in
the country is not able to get two square meals a day. It was felt that a scheme for the most

6
destitute population to make available foodgrains at highly subsidized rate is needed and,
therefore, a new scheme known as Antyodaya Anna Yojana (AAY) was launched in
December, 2000 for 1 crore poorest of the poor families of the country.
It was planned that about one crore people who are poorest among the below poverty line
(BPL) families covered under TPDS within the states should be identified and foodgrains at
highly subsidized rate should be supplied to them through Fair Price Shops.
Under this scheme, wheat and rice was made available to these people at highly subsidized
rate of Rs. 2/- per kg. and Rs. 3/- per kg., respectively. The State Governments and UTs were
requested to bear the distribution cost including the margin of Fair Price Shops dealers as
well as the transportation cost. Initially, 25 kgs. foodgrains per family per month was issued,
which was increased to 35 kg. w.e.f. 1st April, 2002.

10.4.1 First Expansion of AAY


From 2003-2004, the AAY scheme was further expanded by adding another 50 lakhs BPL
house-holds which are headed by widows, terminally ill people, disabled persons and persons
of 60 years age or more with no assured means for their support. With this increase, 1.5
crores families were covered under AAY.
10.4.2 Second Expansion of AAY
In the Union Budget of 2004-05, it was announced that AAY was further expanded for
another 50 lakhs families who are at the risk of hunger. Order to this effect was issued on 1 st
August, 2004. The following class of population was covered under AAY.
 Land-less agricultural labourers, marginal farmers, rural artisans/craftsmen, such as
potters, tanners, weavers, blacksmith, carpenters, slum dwellers and persons earning
their livelihood on daily basis in informal sector like porters, coolies, rickshaw
pullers, hand cart pullers, etc.
 Families headed by widows terminally ill people, disabled persons, persons aged 60
years or more with no assured means for their support.

10.4.3 Third Expansion of AAY


In the Union Budget of 2005-06, further expansion of AAY to cover another 50 lakhs BPL
house-holds was announced. Thus, the total coverage of house-hold families under
Antyodaya Anna Yojana increased upto 2.5 crores.

7
10.5 QUANTITY OF FOODGRAINS ISSUED UNDER TPDS

Since 1997, the quantity of foodgrains issued to BPL families has been gradually increased
from 10 kg. to 35 kg. per family per month. The first increase was made from 1.4.2000
wherein quantity was enhanced up to 20 kg. per family per month. This was further increased
from 20 kg. to 25 kg. per family per month with effect from July, 2001.
Initially, the Antyodaya families were provided 25 kg. of foodgrains per family per month at
the time of launching of the scheme. The quantity of the foodgrains issued under APL, BPL
and AAY has been increased upto 35 kg. per month per family w.e.f. 1 st April, 2002 with a
view to enhance the food security at the house-hold level and to increase the nutritional
requirement. It is important to mention here that 59 per cent (in terms of kilo calories per day
per person), 58 per cent of total protein and 13 per cent of total fat are derived from cereals
intake.
10.5.1 Achievements of TPDS
After June, 1997, the PDS has now become a major food security scheme for the poor
families living in different parts of the country, particularly in remote hilly rural areas.
i) The TPDS scheme fulfils about 50 per cent of the cereals requirement of the
poor family every month.
ii) The off take of foodgrains under BPL scheme has considerably increased and
during 2003-04, it was 199 lakh metric tonnes which is about 83 per cent of
the total PDS off take.
iii) The Central Issue Prices (CIPs) of foodgrains for BPL and Antyodaya families
have not been increased much since the year 2000.
iv) The total off take of foodgrains under TPDS was around 239 lakh metric tone
in 2003-04, which is the highest level achieved so far.
v) The CIP for AAY category is kept lowest, i.e. Rs.2/- per kg for wheat and Rs.
3/- per kg. for rice. This is much below the economic cost of these grains.

10.5.2 Allocation and Off Take of Foodgrains under TPDS


The details of allocation made under TPDS and off take of foodgrains are as under:

8
Table 10.3: Allocation made under TPDS, off take and percentage off take
(Lakh MTs.)
Year Total TPDS Total TPDS off take Percentage off take
allocation
1997-98 180.88 131.53 72.72
1998-99 226.77 184.45 81.34
1999-2000 239.00 168.07 70.32
2000-01 274.59 117.89 42.93
2001-02 300.08 135.65 45.21
2002-03 743.28 198.56 26.71
2003-04 712.32 239.31 33.60
2004-05 417.99 157.96 37.79

On carefully examination of the allocation of foodgrains and their off take, it is revealed that
off take was maximum during 1998-99 and it is continuously showing the declining trend.
The reasons for less off take needs to be examined. Whether this is due the lack of purchasing
capacity of the poorest in rural areas or due to poor management of the TPDS in some states
needs to be looked on. Sometimes the FPS owners are not able to lift the allocated stocks due
to lack of finance. Non-issue of ration cards to the needy people in villages in a number of
States is also one of the reasons of poor off take under TPDS. There may also be some
implementation related problems, which should be removed.
Updated data on offtake of Rice and wheat under TPDS is presented in the Table 10.4.

Table 10.4: Offtake of Rice+Wheat for 2016-17 as against the allocation upto the month of
March, 2017 under TPDS (in thousand tons)
Year Total TPDS Total TPDS off take Percentage off take
allocation
2010-11 47,547.329 43,720.667 92.0
2011-12 48,876.848 43,101.917 88.2
2012-13 50,468.564 44,876.123 88.9
2013-14 50,134.056 44,511.505 88.8
2014-15 30420.453 25592.359 84.1
2015-16 52340.432 49594.204 94.8
2016-17 54333.091 52166.631 96.00
Source: http://dfpd.nic.in/allocation-offtake.htm

TPDS UNDER NATIONAL FOOD SECURITY ACT, 2013


The National Food Security Act, 2013 (NFSA) has been notified on 10.9.2013.National Food
Security Act, 2013 (NFSA) provides for food and nutritional security in human life cycle
approach, by ensuring access to adequate quantity of quality food at affordable prices to

9
people to live a life with dignity and for matters connected therewith or incidental thereto.
The Act is being implemented in all the States/Union Territories (UTs) and covers 81.35
crore persons, constituting two - third of the population, who get foodgrains at highly
subsidized rates. This coverage has been delinked from poverty estimates. The coverage,
entitlements of foodgrains, etc. under the NFSA, 2013 have undergone change as compared
to those under the existing TPDS. NFSA, 2013 inter alia provides for coverage of upto 75%
of the rural population and upto 50% of the urban population at the all India level under
TPDS. Under the NFSA, 2013, the priority households are entitled to receive foodgrains @ 5
kg per person per month at the issue prices of Rs. 3.00, Rs.2.00 and Rs. 1.00 kg for rice,
wheat and coarse grains respectively. The AAY households to receive 35 kg of foodgrains
per household per month at the same subsidized price.
Source: http://dfpd.nic.in/public-distribution.htm

10.6 IMPLEMENTATION RELATED SHORTCOMINGS OF TPDS

Some of the major deficiencies observed in the functioning of TPDS in various States are as
follows:
10.6.1 Incorrect Identification of BPL Families
There has been large number of complaints that the identification of BPL beneficiaries was
not correct and many eligible families have been left out of the BPL purview. There was a
pre-condition of possession of the BPL card for identification under Antodaya Anna Yojana
and a large number of very poor people coming in the category of AAY who were not having
BPL cards could not get the AAY cards. Requirement of permanent address and delay in
verification of antecedents made it very difficult for home less and urban destitute to get a
BPL / AAY ration cards.
10.6.2 Non Issue of Ration Cards
In some of the states / UTs like Goa, Himachal Pradesh, Manipur, Rajasthan, A&N Islands,
Chandigarh, Dadra & Nagar Haveli and Lakshdweep, the identification of BPL and AAY
families have not been completed and ration cards to all beneficiaries have not been issued.

10.6.3 Non-availability of Adequate Foodgrains in the Fair Price Shops (FPSs)


Due to shortage of resources, some of the states as well as FPS dealers are not able to lift the
adequate quantity of foodgrains as a result the beneficiaries/consumers particularly in the

10
rural areas are not able to get their foodgrains from FPSs. There are also reports that some
quantity of foodgrains meant for TPDS and other welfare schemes are diverted to open
market. This needs to be checked by the State Governments.

10.7 MEASURES TAKEN TO STRENGTHEN TPDS AND CHECK


DIVERSION OF FOODGRAINS

It has frequently argued that the PDS system has failed to deliver the desired result for which
it was planned due to several shortcoming as discussed above. The following are the some of
measures taken to overcome various shortcomings in the PDS system in order to make
system effective and target oriented.
(1) Citizen Charter
This charter contains, inter alia, the basic relevant information for the consumers and a model
procedure and time schedule for various services to be provided by the State /Central
Governments.
(2) Involvement of Panchayati Raj Institution
Under the guidelines for implementation of the TPDS, the State Governments are supposed to
involve Gram Panchayats and Gram Sabha in the identification of BPL, AAY families.
(3) Area Officers Scheme
From February, 2000, the Department of Food and Public Distribution, Ministry of Consumer
Affairs, Food & Public Distribution had appointed Area Officers for different States/UTs to
coordinate with the State Governments for regular and effective monitoring of TPDS. The
observations/discrepancies reported by these Area Officers are communicated to the State
Governments for taking remedial measures.
(4) Constitution of Task Force
Task Force team with senior officers of the Department of Food & Public Distribution, FCI
and Central Warehousing Corporation (CWC) had been constituted to check irregularities, if
any, in the distribution of foodgrains under TPDS and AAY.
(5) Monitoring the Quality of Foodgrains
Officers of the Quality Control Cell of the Department of Food & Public Distribution as well
as State Government officers regularly inspect the Fair Price Shops and collect the samples of
foodgrains for analysis purposes. Incidences of supply of poor quality of foodgrains are
brought to the notice of concerned Organisation for taking remedial measures. Sealed

11
samples of foodgrains issued from FCI or State Governments’ depots are displayed on the
fair price shops for the benefit of consumers.

Check Your Progress 2

1) What is Antyodaya Anna Yojana (AAY)?


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2) What are the issue prices of wheat and rice under Antyodaya Anna Yojana?
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3) How many families are covered under this scheme at present?
…………………………………………………………………………………………
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4) What are the short comings of TPDS?
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5) What are the measures taken by the Government to strengthen the TPDS?
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10.8 LET US SUM UP

In this Unit we have discussed the basic objective of the food policy of the Government of
India, which aims at providing cheaper foodgrains to the large number of population living in
different parts of the country particularly in the tribal, remote, hilly and inaccessible areas.
The Public distribution system was introduced in 1960. This was further strengthened and
focused on the targeted group, i.e., poor people in 1997 and known as Targeted Public
Distribution System.
It was felt that the benefit of TPDS is not reaching to the poorest and destitute people of the
country and a scheme for making available foodgrains at highly subsidized rate to these

12
people was needed. Therefore, a new scheme in addition to TPDS, known as, Antyodaya
Anna Yojana was launched in December, 2000 for 1 crore poorest of the poor families of the
country.
The scheme has been expanded 3 times and now about 2.5 crores people are covered under
this scheme. The Central Issue Prices on which the foodgrains under various public
distribution schemes are issued are fixed by the Government of India and these prices are
much below than the economic cost of the foodgrains. Under Antyodaya Anna Yojana, wheat
at the rate of Rs.2/- per kg. and rice at Rs.3/- per kg. in the scale of 35 kg. foodgrains per
month per family are issued.
There are some implementation related shortcomings in TPDS. Due to financial constraints,
sometimes State Governments as well as FPS dealers are not able to lift the allocated stocks
of foodgrains. The possibility of leakage and diversion of some foodgrains to open market is
not ruled out. Government of India and State Governments have taken a number of measures
to remove these shortcomings. Area officers, members of The Task Force Teams constituted
by the Government of India regularly monitor the TPDS and other schemes of the
Government and wherever shortcomings are observed, these are brought to the notice of the
concerned authorities for taking the remedial measures.

10.9 KEY WORDS

Allocation : The quantity of foodgrains (quota) which is issued to the


state Governments.

Antyodaya Anna Yojana : The scheme of distribution of foodgrains amongst poorest


(AAY) of poor people at highly subsidized prices

APL : Above poverty line population.


BPL : Below poverty line population

Off take : The quantity of foodgrains (quota) which is actually lifted


by state Governments.

Targeted Public : The scheme of distribution of foodgrains at cheaper


Distribution System prices focused on the targeted group, i.e., poor is known
as Targeted Public Distribution System.

13
10.10 SOME USEFUL BOOKS / REFERENCES

Anonymous (2000). Report of the High Level Committee on Long-Term Grain Policy.
Published by Department of Food & Public Distribution, Krishi Bhavan, New Delhi.
Anonymous (2006). Annual Report 2005-2006 of the Department of Food & Public
Distribution, Ministry of Consumer Affairs, Published by Department of Food & PD,
Krishi Bhavan, New Delhi.
Chopra, R.N. (1988). Food Policy in India- A Survey. Intellectual Publishing House, 23
Daryajang, Ansari Road , New Delhi
Bhandari, I.K. (2002). Public Distribution System. RBSA Publishers. SMS Highway, Jaipur
(India).
Kumar, Ashok (1988). Foodgrain Production in India – Impact of Techno-Environment
Factors. Criterion Publications, 136 Raja Garden, New Delhi-110015.
Sharma, P.K. (1997). Foodgrain Economy of India. Shipra Publication, 115A, Vikas Marg,
Shakarpur, Delhi-110092.

10.11 ANSWERS / HINTS TO CHECK YOUR PROGRESS

Check Your Progress 1

1) The main aim and objectives of the food policy of the Government of India are to provide
cheaper foodgrains to large number of poor population living in different parts of the
country particularly in tribal, hilly, remote and inaccessible areas. Stabilizing the market
price of foodgrains by making procurement, storage and distribution of foodgrains
through various schemes is also an objective of food policy.

2) The targeted public distribution system introduced in 1997 focused on poor people and
beneficiaries were categorized in below poverty line and above poverty line segments.
The emphasis was to make available foodgrains to below poverty line population.

3) The Central Issue Price of wheat and rice for BPL families are Rs.4.15 per kg. and
Rs.5.65 per kg., respectively.

14
Check Your Progress 2

1) The Antyodaya Anna Yojana is meant for poorest among poor (BPL) families wherein
wheat and rice are supplied at highly subsidized rates.

2) The issue prices of wheat and rice under Antyodaya Anna Yojana are Rs.2 and Rs.3 per
kg., respectively.

3) About 2.5 crores families are covered under Antyodaya Anna Yojana.

4) The important shortcomings of TPDS are that most of the poor people have not been
issued proper ration cards to get the benefit of subsidized foodgrains being issued under
these schemes. Besides, some quantity of the TPDS appears to be diverted to open
market.

5) The Government has taken a number of measures to strengthen the TPDS. Some of the
measures are as follows:

i. Identification of poor families to streamline the scheme in the States and ration cards
are being issued to these people.

ii. Area Officers appointed by the Government of India inspect the distribution of
foodgrains under TPDS and AAY schemes regularly and shortcomings are removed.

iii. Members of the Task Force Team also inspect the fair price shops to ensure proper
functioning of TPDS and AAY schemes.

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