Parliament Question: Operational Efficiency of PDS

GOVERNMENT OF INDIA MINISTRY OF CONSUMER AFFAIRS. FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION LOK SABHA STARRED QUESTION NO. 242 TO BE ANSWERED ON 6TtI AUGUST.2O25 OPERATIONAL EFFICIENCY OF PDS *242. SHRI NAVEEN JINDAL: Will the Minister of CONSUMER AFFAIRS. FOOD AND PUBLIC DISTzuBUTION be pleased to state: (a): the measures being taken by the Government to ensure efficient functioning of the Public Distribution System including timely distribution of foodgrains and avoidance of pilferage; (b): the Government's assessment ol the eflflciency of the PDS in terms of reaching the beneficiaries along rvith the steps being taken to improve its reach and impact; (c): the details ol the major issues with the operational efficiency of PDS in terms of supply chain. warehousing and distribution networks; (d): the details of the current subsidy rate on foodgrains under the PDS: (e): the details of the steps being taken by the Govemment to ensure the effective implementation of subsidies and price control measures on essential commodities to protect consumers from price volatility and exploitation; (0: the measures being taken by the Governlnent to ensure that the PDS supports the rural economy and the impact of the PDS on the rural economy! farmers, agricultural labourers and sma[[-scale businesses; and (h): the details of Government's plan to further strengthen the PDS? ANSWER MINISTER OF CONSUMERAFFAIRS, FOOD & PUBLIC DISTRIBUTION AND MINISTRY OF NEW AND RENEWABLE ENERGY (SHRI PRALHAD JOSHI) (h): (a) to A statement is laid on the Table of the House.-2- STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (h) OF THE STARRED QUESTION NO. *242 DUE FOR ANSWER ON 06.08.2025 rN THE LOK SABHA REGARDING. (a): As part of the technology driven Targeted Public Distribution System (TPDS) reforms, with the aim to improve the transparency and accountability in the TPDS, ration cards/beneficiaries database have been completely digitized ( 100%) in all StatesfuTs. The transparency portal and online grievance redressal tacility/Toll-free number have been implemented in all StatesAJTs. Also. online allocation has been implemented in all StatesfuTs and supply chain has been computerized in 3l StatesfuTs (except UTs olChandigarh, Puducherry and Urban area of Dadra & Nagar Haveli which have adopted DBT Cash Transfer scheme). Further, for better tracking of foodgrains distribution, nearly 5.41 Lakh (99.6%) out oltotal 5.43 Lakh Fair Price Shops (FPSs) in the country have been automated by installing ePoS devices for the distribution of foodgrains in a transparent manner (electronically) through biometric/ Aadhaar authenlication of benefi ciaries. Furtheq for transparency and proper functioning of the Targeted Public Distribution System and accountability of the functionaries in such system, every State Govemment sets up Vigilance Committees as specified in the Public Distribution System (Control) Order, 2001, made under the Essential Commodities Act, 1955, as amended from time to time, at the State, District, Block and Fair Price shop levels. Therefore, it is the responsibitity of the concemed state Govt. to maintain a robust public distribution system to ensure smooth distribution ol food grains to the targeted beneliciaries and to avoid any diversion ofsubsidized food grains to open market. Helpline number 196711800-State series number is operational in all the States/ UTs for contacting and redressal of the complaints in Public Distribution System and filing any type of complaints by the intended beneficiaries. As and when complaints, including pillerage of NFSA foodgrains, are received in this Depa(ment from any source, they are sent to State/ UT Governments concerned for inquiry and appropriate action. (b): This Department engaged Monitoring Institutions (MIs) of repute to undertake concurrent evaluation of the implementation of National Food Security Act, 201 3 (NFSA) in different States/UTs lor PhaseJ (2018-20) and Phase-ll (2020-23). Reports submitted by the MIs are available in public domain at https://nfsa.gov.in/portaVConcurrent_Evaluation.-3- (c): The supply chain and logistics for the Public Distribution System (PDS) involve multiple stages and processes to ensure the smooth distribution of foodgrains to the intended beneficiaries. The procurement and distribution processes in the PDS involve a coordinated effort between farmers, government agencies, storage facilities, transporters, and Fair Price Shops. Supply Chain Management software/application has been developed and implemented in the most of the States/UTs to electronically perfbrm entire supply operations for improving efficiency and transparency. A unified application is being developed under SMART PDS (Scheme for Modernization and Reforms through Technology in Public Distribution System) that integrates all facets of PDS operations from Procurement, Supply chain & Allocation to Distribution ol lood grains along with management Ration Card databases across States &UTs. The system is being developed by NIC and is in various stages ofdeployment across States & UTs (d), The current Economic Cost of the foodgrains are Wheat - Rs.2980.06 per qtl. and Rice - Rs.4173.34 per qtl. However, Government of India is providing free of cost foodgrains to the beneficiaries under PMGKAY (e): The Govemment of India distributes foodgrains to the beneficiaries under PMGKAY (Pradhan Mantri Garib Kalyan Anna Yoj ana), Other welfare schemes, Defence, Additional allocations in case of natural calamity etc. In addition, Government of India sells surplus food grains (Wheat & Rice), beyond the public Distribution System (PDS) and Other Welfare Schemes (OWS) requirements, through open sale under Open Market Sales Scheme (Domestic) (OMSS(D)). This helps in increasing the availability of foodgrains in the market, control inflation, ensure food security and make foodgrains more affordable for the general population. In addition, Bharat Atta and Bharat Rice were launched, with a view to provide atta (wheat flour) and rice to general consumers at subsidized rates under Open Market Sale Scheme (Domestic) (oMSS(D)) poticy. The Essential Commodities Act, (EC Act), 1955 and the Prevention of Black marketing and Maintenance of Supplies of Essential Commodities Act, (PBMMSEC Act), 1980 provide the legislative and administrative foundations to the Govemment to regulate prices, production, supply, distribution etc. of essential commodities for maintaining or increasing their supplies and for securing their equitabte distribution and availability at fair prices. In order to prevent hoarding and unscrupulous speculation of essential commodities, stock limits are imposed under the EC Act. Directives are issued to the States and UTs to enforce compliance with the stock limits by stockholding entities, and follow-up meetings are held with the StatesruTs to review the status of implementation. The PBMMSEC Act. 1980, is complementary to the EC Act, 1955. It is implemented through the State GovernmentsfuT Administrations for preventing the illegal and unethical trade practices, profiteering, hoarding, and black-marketing of essential commodities etc. by ordering preventive detentions for six months ofpersons involved in such activities. (0' NFSA covers :upto 75oh ofthe rural population and upto 50% ofthe urban population under Antyodaya Anna Yojana (AAY) and priority households (PHH). while AAY households, which constitute poorest of the poor are entitled to 35 kg of loodgrains per family per month, priority households are entitled to 5 kg per person per month. The Govemment of India, to remove the-4- financial burden of the poor beneficiaries (including farmers, agricultural labourers, etc.) and to ensure nationwide unilormity and effective implementation of the Act, is providing food grains free of cost to Antyodaya Anna Yojana (AAY) households and Priority Households (PHH) beneficiaries. Many Fair Price Shops (FPS) are run by rural self-help groups, cooperatives. and women self-help groups. PDS operations are also generating employment for rural population by engaging them into loading. unloading. packaging. and transport of grains. Centralised procurement ol food grains (\a'heat, rice, coarse grains) at MSP (Minimum Support Price) assured market rate to larmers and also helped in rural economy. Rural procurement centres/mandis, storage godowns, silos, etc established closer to villages also contribute into rural economy. Procurement of locally grown millets and distribution through PDS is also major contributor to the rural economy. Now, One Nation One Ration Card facility available across the country which enables rural labourers /migrant workers to avail ration from any Fair Price Shop. (h): The scheme "Scheme for Modemization and Reforms through Technology in Public Distribution System" (SMART-PDS)" was launched to sustain the Information TechnologyJed Reforms to be brought in the functioning of Public Distribution System (PDS) Operations by overcoming the state level technological limitations of PDS operations in all StatesfuTs in respect of IT Hardware, Software, Technical Manpower and to institutionalize an integrated central system covering all PDS related operations across all StatesfuTs. The Depa(ment has also launched Mera Ration App in August 2024 to enhance transparency and accessibility in the Public Distribution System (PDS). The mobile empowered beneficiaries to access family and ration details, grievance redressal, mobile ration card download, and FPS rating features. The Department also conducted extensive data analytics ofration card databases across all StatesfuTs, detecting discrepancies such as duplicate ration cards, silent cards, members aged over 100 years, single-member households with members below l8 years, and Aadhaar records marked as 'Deceased," suspended,"Cancelled.' or 'lnvalid.' Such benet'iciaries were flagged to States and they were asked to do further verification of such members of ration cards. Accordingly, out of total of 2.94 Cr cases flagged, approx. 1.24 Cr such flagged cases were deleted by States & UTs. This improved targeting of beneficiaries, enabling inclusion of more eligible persons under PMGKAY within NFSA ceilings.-5- Two digitat initiatives have also been launched-Anna Sahayata and Anna Mitra to enhance PDS efficiency. . Anna Sahayata: An advanced grievance redressal system under NFSA using WhatsApp and IVRS, featuring grievance registration, a three-tier escalation matrix, and real-time tracking, now operational across all States/UTs. . Anna Mitra: A mobile app for PDS field functionaries offering secure access to operational data, stock management, beneficiary records, inspection tools, and compliance reporting from district to FPS level. It caters to FPS dealers, Food supply inspectors and District Food Supply Officer. Key benefits include streamlined operations, reduced manual paperwork, improved stock visibitity, and data-driven decision-making.