PUBLIC DISTRIBUTION SYSTEM IN KOLHAPUR DISTRICT: A STUDY

PUBLIC DISTRIBUTION SYSTEM IN KOLHAPUR DISTRICT: A STUDY Santosh Hambir Kamble Assistant Professor Department of Commerce Shri. Shahaji Chhatrapati Mahavidylaya, Kolhapur Abstract It is concern of the study the Public Distribution System in Kolhapur District of Maharashtra State. Public Distribution System is an instrument of providing food security at the household level to vulnerable sections of the society. This study follows the descriptive method of research and it is based on both primary as well as secondary data. Prime objective of the study is to inspect the Public Distribution System in the Kolhapur District from distribution side. The researcher examined the prices of commodities distributed under Public Distribution System in the District, no. of beneficiaries in the District, no. of Fair Price Shops in the District, total allocation of food commodities to beneficiaries and percentage of the lifting by beneficiaries. It is found that Prices of Foodgrains distributed under PDS are lower compared to market prices of these Foodgrains. It is found that 18% variance in the lifting of food items by beneficiaries. People whose incomes above Rs. 44,000 and up to Rs. 1,00,000 ( for Rural ) and above Rs. 59000 and up to Rs 100000 for urban area are excluded from the Public Distribution System. Ratio of Fair Price Shops in the District is lower compared to the state level. It is suggested that to include more people in Public Distribution System income slabs should be revised, increase no of Fair Price Shops for improved services and ITC based techniques should be used. Key words: Food Security, Public Distribution System, Fair Price Shops and National Food Security Act Prime International Research Journal, Vol. III, Issue 3, June, 2016 Page 23

Introduction Ensuring food security to all citizens has been accepted as the primary responsibility of the state towards its citizen. The food security issue gains more importance in these days. The concept of food security has been defined by the World Bank as Access by all people at all times to enough food for active and healthy life. Achieving Food security at national level and household level is an important issue before the Indian government. Government of India has formulated various schemes to ensuring Food Security in India like Mid Meal Scheme, Integrated Child Development Program and Public Distribution System. The Public Distribution System is a large scale food rationing program meant to reduce food insecurity and improve welfare. Public Distribution System deals with the procurement of Food grains from the producer at minimum support price and distribute these food grains to vulnerable sections of the society at subsidized prices this covers Availability, Affordability and absorption of food grains in the country. The PDS has become a significant instrument ofthe government s policy of ensuring the availability of food grains to the public at affordable prices by regulating the open market prices of essential commodities and enhancing food security at household level. PDS system was universal up to 1997, in 1997 the Government launched Targeted Public Distribution Scheme to target real poor of society.in the year 2013, Government of India passed National Food Security Act 2013. According to NFSA 2013, 75% rural and 50% urban people will be benefited and these people will get Rice at Rs. 3 per Kg., Wheat at Rs. 2 per kg and Coarse Grain at Rs. 1 per kg. PDS has been widely criticized for its failure to reach the poor effectively, urban bias and lack of transparency and accountability. In the present paper an attempt is made to study Public Distribution System and revised Public Distribution System under Food Security Act 2013 in Kolhapur District of Maharashtra state Objectives of the study 1) To study the Public Distribution System. 2) To Study the Public Distribution System according to NFSA 2013 in Kolhapur District. Prime International Research Journal, Vol. III, Issue 3, June, 2016 Page 24

Research Methodology Data Collection- Primary Data-In Present study primary data have been collected from interviews and personal discussion with officials of Kolhapur District Civil and Supply office. Secondary Data- Secondary data has been collected from various research papers related to study and published and unpublished reports related to study. Analysis of Data- Data has been analyzed by various statistical methods like average, Percentages and ratios etc. Public Distribution System in India Public Distribution System is a key factor of food security in India. It is medium of providing food grains to the vulnerable section of the society at subsidized rate. It has network of fair price shops all over the country. This system has three tier structure at the top there is FCI (Food Corporation of India) it has function of procurement, stocking of food grains and bulk allocation of foodgrains as per demand of states and at the second stage, State Civil Supplies and Consumer Protection Department and at the base there is network of Fair Price Shops, Fair Price Shops provide food grains to beneficiaries as per quota given by the State Government. This system is jointly run Central and State government central government s role is Procurement, Storage and Transportation and bulk allocation of food grains and state government entrusted with allocation of foodgrains, identification of families below the poverty line, issue of ration cards and supervision of functioning of Fair price shops. Origin and Evolution of Public Distribution System Public Distribution System was initiated in 1940 as general entitlement scheme. Before1992 PDS was universal in nature and it was not targeted. In June 1997 Indian Government initiated new scheme, Targeted Public Distribution Scheme under this scheme beneficiaries are classified into Below Poverty Line and Above Poverty Line. Two additional schemes also included in TPDS namely Antyodaya Anna Yojana and Annapurna Targeted Public Distribution System in Maharashtra In Maharashtra State on 1 st June 1997 Targeted public Distribution System was started. Under this System, the poor families in the State were provided food grains at Prime International Research Journal, Vol. III, Issue 3, June, 2016 Page 25

subsidized rate.bpl Yellow ration card holders are provided with 35 Kgsfoodgrains (Wheat + Rice) and APL Saffron ration card holders are provided with 15 Kgsfoodgrains (Wheat + Rice ) Tricolor Ration Cards Scheme State adopted tricolor system under Targeted Public Distribution System Yellow Ration Cards Yellow ration cards are issued to families below poverty line. Saffron Ration Cards Saffron Ration Cards are issued to families above poverty line. White Ration Cards White Ration Cards are issued to families having income above Rs. 100000. Antyodaya Anna Yojana (AAY) In the state Antyodaya Anna Yojana has been started w.e.f. 1 st May 2001 under this scheme 35 Kgsfoodgrains (Wheat at the rate- Rs. 2.00 per Kg+ Rice at rate Rs. 3.00 per Kg) is distributed to the cardholders of AAY. Under this scheme the families are selected from following BPL categories. And it is for poorest section of BPL. Annapurna Scheme:- "Annapurna scheme" is being implemented in this State w.e.f. 1st April, 2001. This is 100% centrally sponsored scheme. Under this scheme 10 Kgs of foodgrains per month are provided free of cost to the old destitute people of 65 years and above age. National Food Security Act, 2013- In Sep. 2013 Indian parliament passed the food security (Act 2013). The National Food Security Act gives statutory backing to the Public Distribution System in the country. This legislation marks a shift in the right to food as a legal right rather than a general entitlement. The Act classifies the population into three categories: excluded (i.e., no entitlement), priority (entitlement), and Antyodaya Anna Yojana (AAY; higher entitlement). It establishes responsibilities for the centre and states and creates a grievance redressal mechanism to address non-delivery of entitlements. It is yet to be implemented. Prime International Research Journal, Vol. III, Issue 3, June, 2016 Page 26

National Food Security Act, 2013 and Public Distribution System in Maharashtra National Food Security Act, 2013 (NFSA) was introduced from 5th July, 2013 in the country. It is being implemented in state from 1 st February 2014. As per the act, beneficiaries under AntyodayaAnna Yojana (AAY) continue to receive 35 kg of foodgrains per family per month and remaining. Eligiblebeneficiariesget five kg of foodgrains per person per month at ricers. 3 per kg, wheat at Rs 2 per kg and coarse grain at Rs. 1kg tobeneficiaries. According to this Act, 62.3 per cent (about seven cores) population in the State isentitled to get foodgrains for subsidized rates. Out of which, 76.3 per cent (about 4.70 crore) is ruraland 45.3 per cent (about 2.30 crore) is urban population. Since February 2014 all families fromrural and urban area having annual income up to Rs. 44,000 for rural and Rs. 59,000 from urban area, both from BPL and APL (saffron cardholders) are termed as Priority Household. Prices of Foodgrains Distributed Under Public Distribution System Following table shows retail prices of food grains to beneficiaries under PDS According provisions of National Food Security Act 2013 Table 1.1ices of Food grains distributed under Public Distribution System Targeted Public Distribution System - Retail Price per k.g. Item Name AAY BPL Priority household Non NFSA(State) Rice 3.00 -- 3.00 9.60 Wheat 2.00 -- 2.00 7.20 Coarse Grains 1.00 -- 1.00 -- Sugar 13.50 13.50 -- -- Source www.mahfood.org.com Under Public Distribution System beneficiaries covered under NFSA 2013 gets food grains at subsidized prices ( Rice Rs. 3 Per kg, Wheat at Rs. 2 per kg ) and non priority households getting food grains at center issue prices (Rice Rs. 9.60 Per kg, Wheat at Rs. 7.20 per kg ). Public Distribution System in Kolhapur District Kolhapur is one of the district of Maharashtra State. This district is well known for Sugar and Jaggaery production in Maharashtra. There are 1216 villages, 23 towns and Prime International Research Journal, Vol. III, Issue 3, June, 2016 Page 27

12Tahsilsin the District as per census 2011. Public distribution system in thedistrict run by the Department of Food and Civic Supplies Maharashtra state and allocation and prices are fixed by Maharashtrastate government. Districtsupply office follows guidelines of state related with Public Distribution System. District supply office has network of tahsilwise supply offices which have given authority to monitor the Public Distribution System in the particular tahsil.fair price shops are retail points of distribution of foodgrains to beneficiaries under Public Distribution System. Currently in the district foodgrains are supplied to beneficiaries according to the provision of National Food Security Act 2013. Only Wheat, Rice and Sugar (only for AAY cardholders) are distributed to beneficiaries of the District. Foodgrains supplied to priority at 5 kg (Wheat 3kg and Rice 2.kg) per personand to AAY cardholder are given 35kg (Wheat 21 kg and Rice 14 kg) per card. department is not providing foodgrains to APL and White card holders in the district. Beneficiaries under Public distribution System in The District District supply Following table shows no of beneficiaries from Above Poverty Line, Priority (NFSA) and Antyodaya Anna Yojana in the District. Table 1.2 No of beneficiaries in the Kolhapur District, allocation of food grains to beneficiaries and lifted by beneficiaries during the month Mar. 2016 No. of No. of Allocation of Allocation of Beneficiaries Sr. Beneficiaries Foodgrains(wheat Foodgrains(wheat Tahsils Name Antyodaya No. APL and Rice) in and Rice) in Anna Priority Quintals Quintals Yojana 1 Karvir 358655 17933 1938 679 % 0f lifting by Beneficiaries Proirity and AYY 2 Kagal 169151 8458 4206 1453 3 Panhala 171501 8575 4655 1630 4 Shahuwadi 127091 6355 3253 1139 5 Radhanagari 135618 6782 3975 1392 6 Gaganbawada 18894 945 883 310 7 Bhudergad 99280 4963 3563 1246 8 Gadhinglaj 117776 5889 6261 2192 9 Chandgad 108389 5420 6070 2125 10 Ajara 73443 3673 4009 1404 Prime International Research Journal, Vol. III, Issue 3, June, 2016 Page 28

11 Shirol 247046 12352 4641 1625 12 Hatkanagale 291664 14584 4992 1748 13 Ichalkaranji 113486 5675 4470 1565 14 KolhapurCity 249884 12495 3259 1142 Total 2281878 113973 56175 19667 82 Source Kolhapur District Supply Office. Above table shows that,there are 22,81,878 Priority and 56,175 AAY beneficiaries in the district. There is adequate supply of food grains in the district and percentage of lifting wheat and Rice by beneficiaries ranges from 74% to 94% and average lifting is 82%. White and APL cardholders are not getting any food grains from PDS. Network of fair price shops in the districts Fair Price Shops are retail point of Pubic Distribution system. Success of Public Distribution is depends upon how food grains are distributed to beneficiaries. It is important element of Public Distribution system deals with distribution of food grains to direct beneficiaries. Following table shows no of Fair Price Shops in the District. Table 1.3 Following Table shows total no of Fair Price Shops. Name of Tahsil Shirol Karveer G. Bawada Gadhinglaj Kagal Shahu wadi Chandgad Panhala Hatkan- -agale Radha- -nagari Bhud argad Ajara No of Fair Price Shops 138 314 23 95 97 125 131 106 244 116 91 82 Source: Kolhapur District supply office Above table shows no of fair price shops in the district. There are 1562 Fair Price Shops in Kolhapur Districts. Karveer and Hatkanagale Tahsils have highest no of Fair Price Shops because this Tahsils include Kolhapur and Ichalkaranji cities. In the District there is one Fair Price Shop for every 608 families and all Maharashtra level it is one Fair Price Shop for every 459 families. Prime International Research Journal, Vol. III, Issue 3, June, 2016 Page 29

Conclusion and Suggestions Public Distribution system is important tool of providing food security to vulnerable section of the citizens of India. Govt. Introduced TPDS in the Country for targeting real poor of the country. In 2013 Govt. Passed National Food Security act under this act 75% rural and 50% urban people will be covered under this act and this act is inan implementation stage. In current study an attempt has been made by the researcher to study Public Distribution System in Kolhapur district at Distribution stage and studied no of ration card holders in the District, No of Fair Price Shops in The district, allocation and lifting of foodgrains by beneficiaries. And found that lifting percentage of food grains by beneficiaries is 82% of total entitlement and there is variance of 18%. APL families having income more than 44000 in rural and 59000 in urban areas are not getting any benefit from Public distribution system. Only Wheat, Rice and Sugar (only to AAY families) are distributed to beneficiaries under Public Distribution System in the districts. Edible Oil and Pulses and other major fooditems are not distributed under PDS in the District. No of Fair Price Shops are less compared to state level average. It is suggested that District supply department try to increase lifting by benefiaries to 100%. Income slabs for eligibility is low with the current scenario and it should be increased up Rs. 100000 per Annam. Pulses are main sources of protein and it should be included in Public Distribution System. No of Fair Price Shops are to be opened in the district. There is need to introduce ICT based techniques for proper implementation of Public Distribution System like Biometric, SMS alert etc. finally we can say that the Public Distribution System is an instrument of providing food security to vulnerable section of society and it should be implemented by Government Authority with minimum error and maximum accuracy. References A Jaykumar. (2007), Food Security Management, Anmol Publication Pvt Ltd, New Delhi, pp 201-212 R. M. Choudhari (2007), Public Distribution System, Serial Publication, New Delhi,pp1-24 Sakashi Balani(2013), Functioning of the Public Distribution System, PRS LEGISLATIVE RESEARCH. Prime International Research Journal, Vol. III, Issue 3, June, 2016 Page 30

R.C. Rajamani (2012), The Imponderable of the Food Security Bill, Kurukshetra, Vol. 60, No. 1. Anupam Hazra (2012), Food Security in Rural India: Poverty in the Land of Plenty, Kurukshetra, Vol. 60, No.2. Shahin Raji (2012), Food For All, Kurukshetra, Vol.60, No.3. Harender Raj Gautam, Er. Rohitashw Kumar, (2012),Right to Food, Kurukshetra, Vol.60, No.3. K. Baby (2012), Food Security and Public Distribution System- Issue and Concerns, Kurukshetra, Vol.60, No.4. Anita Modi(2012),Challenges to Provide Food for All, Kurukshetra, Vol.60, No.5. Government of Maharashtra(2014-15),Economic Survey of Maharashtra, DIRECTORATE OF ECONOMICS AND STATISTICS, PLANNING DEPARTMENT, GOVERNMENT OF MAHARASHTRA, MUMBAI National Food Security Act, 2013. Department of Food, Civil Supplies and Consumer Affairs, Government of Maharashtra, http://mahafood.org PDS Portal of India, Minister of Consumer Affairs, Food and Public Distribution, http://pdsportal.nic.in/mainaspx Prime International Research Journal, Vol. III, Issue 3, June, 2016 Page 31