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LATEST NEWS UPDATES | Bringing PDS out of the abyss -Anjali Bhardwaj and Amrita Johri

Bringing PDS out of the abyss -Anjali Bhardwaj and Amrita Johri

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published Published on Nov 27, 2016   modified Modified on Nov 27, 2016
-Deccan Herald

System overhaul: Transparency measures with strong accountability mechanisms can usher in change

The National Food Security Act (NFSA) passed in 2013 gives statutory backing to the Public Distribution System (PDS). Up to 75% of the rural population and 50% of the urban population is entitled to receive food grain under the Act.

Beneficiaries are categorised into priority households, entitled to 5 kg of subsidised grains per person per month, and Antyodaya households are entitled to 35 kg per month. Rice and wheat are to be provided at Rs 3 and Rs 2 per kg, respectively, and coarse grain at Rs 1 per kg.

While the Central government is responsible for procurement, storage, transportation and bulk allocation of food grains to the state governments, the responsibility of allocation of grains within the state, identification of eligible families, issue of ration cards and supervision of the functioning of ration shops rests with the state governments.

It is widely recognised that one of the biggest challenges in the effective functioning of the PDS has been the large-scale corruption in the distribution of food grains. Estimates suggest that in 2011-12, anywhere between 32% and 47% of grains under the PDS did not reach the intended beneficiaries and was diverted to be sold in the open market. This “leakage” of grain takes at least three forms: quality fraud, where the PDS shop dealer replaces the good quality grain meant for distribution under the PDS with inferior quality; quantity fraud, where emboldened by the lack of action by state actors, shop keepers charge the beneficiaries for their full entitlement of grains and provide lesser quantity and issuing of bogus or duplicate cards.

Global experience has shown that the best way to curb corruption is through greater transparency. The NFSA provides for all PDS related records to be placed in the public domain and kept open for inspection. There are also strong transparency provisions in the PDS (Control) Order, 2015, which require every PDS shop to display information about entitlements of beneficiaries, stock position, details of grievance redressal authorities and a sample of food grains sold under the PDS. Further, Section 4 of the Indian RTI Act requires information about the manner of execution of subsidy programmes like the PDS to be proactively disclosed in local languages and in the most accessible form.

States like Bihar, Odisha and Madhya Pradesh, which have adopted various transparency measures as part of a larger PDS reform agenda, have shown huge improvement in terms of reduced leakages of grains. Comparing figures for 2004-05 and 2011-12, pilferage of grains reduced by 73% and 67% in Bihar and Odisha, respectively, (Dreze & Khera, 2015). Many of the steps adopted to address leakages were straight forward, low-cost initiatives like putting up boards clearly displaying the quantum and price of entitlements and having a well publicised schedule for delivery and sale of rations. Simple measures like sending automated text messages to ration cardholders with relevant information about the PDS in Delhi and Chhattisgarh have shown the potential impact they could have in combating corruption.

To bring about systemic change, transparency measures need to be supplemented with strong accountability mechanisms. Food departments of all states have an extensive bureaucracy with officials at the local, district and state levels to supervise and monitor the distribution of grains under the PDS. Unfortunately, there is complete lack of accountability in this supervisory structure.

Complaints about problems in accessing rightful entitlements under the PDS languish without any time-bound redressal and errant officials escape without any penalty. There is a need for an effective decentralised grievance redressal framework so that when a complaint about non-delivery of entitlements under the PDS is received, there is time-bound action to ensure delivery of entitlements and to fix responsibility of functionaries.

Grievance redressal system

The NFSA provides for setting up a time-bound grievance redressal system, mandates conducting periodic social audits, and requires setting up of vigilance committees at the state, district, block and shop levels. However, three years after the implementation of the NFSA, these important provisions are more honoured in the breach. In Delhi, as part of a campaign by the ‘Delhi Rozi Roti Adhikar Abhiyaan’, more than a thousand complaints were filed under the NFSA by ration cardholders in 2015-16 - not a single complaint was addressed in the stipulated time frame, nor was any complaint disposed by a written order.

Instead of implementing the existing transparency and accountability measures, governments have been aggressively propagating Aadhaar-based biometric authentication as the solution to the problem of corruption in the PDS. This involves installing Point of Sale (PoS) devices at ration shops, which verify the identity of cardholders by matching their fingerprints against the Aadhaar database over the Internet. This is totally inappropriate for a vast country like India, where even in state capitals, network coverage is often patchy and electricity supply unreliable.

Experience in states like Jharkhand, Rajasthan and Delhi illustrate the problems associated with requiring biometric authentication. Making Aadhaar mandatory, despite the Supreme Court orders to the contrary, has led to the large-scale exclusion of deserving people from the PDS net. Scores of ration cardholders are unable to access their rations due to lack of availability of proper Internet connection and transaction failures due to fingerprints not being recognised, especially of manual labourers and the elderly. In any case, at best Aadhaar can only address corruption stemming from issue of bogus cards. Use of Aadhaar cannot fix the pre-dominant problems of quality or quantity fraud.

The need for a robust food security programme cannot be overemphasised in a country like India, which according to a 2015 report of the Food and Agriculture Organisation, is home to the highest number of undernourished people in the world - 194.6 million, about 15% of the population. The Global Hunger Index report found that 42% of the world’s undernourished children live in India. Governments have an obligation to effectively reform the PDS by taking steps which are in line with the current reality of the country.

Oft suggested measures like dismantling the PDS and replacing it with cash transfers neither address the issue of hunger nor are themselves proven to be immune from corruption. What is needed to fix corruption in the PDS is political will to adopt effective transparency, accountability and grievance redressal mechanism.

(The writers are associated with the National Campaign for Peoples’ Right to Information and the Right to Food Campaign)

Deccan Herald, 27 November, 2016, http://www.deccanherald.com/content/583314/bringing-pds-abyss.html


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