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8/13/2019 information reporting system

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MANAGEMENT INFORMATION SYSTEM

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CASE STUDY ON PUBLIC DISTRIBUTION SYSTEM

SUBMITTED TO; SUBMITTED BY

DR P.MOHAN SAJITHA A.K

Professor DCMS GEESHMA.K.R

SHUHAIB.C.V

VARUN.K

UMAR SAJIDAKHILA.K.R

PRIYANKA

DEPARTMENT OF COMMERCE AND MANAGEMENT

STUDIES

UNIVERSITY OF CALICUT


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CONTENTS

INTRODUCTION

PUBLIC DISTRIBUTION SYSTEM

ANALYSIS AND DISCUSSION

MIS DESIGN FOR MONITORING AND CONTROL OF PDS

CONCLUSION


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INTRODUCTION

PDS is primarily a social welfare and antipoverty program of the

Government of India. Essential commodities like rice, wheat, sugar, kerosene and the likeare supplied to the people under the PDS at subsidized prices. It has been one of themost important elements in Indias safety net system for almost 50 -years and also themost far reaching in terms of coverage as well as public expenditure on subsidies. PDSprovides rationed amounts of basic food items (rice, wheat, sugar, edible oils) and othernon-food products (kerosene, coal, standard cloth) at below market prices to consumersthrough a network of fair price shops disseminated over the country. The scale of theprogram is evident from the fact that it handles 15 percent of the total availability of riceand wheat. With a network of more than 400,000 Fair Price Shops (FPS), the PublicDistribution

System (PDS) in India is perhaps the largest distribution machinery of itstype in the world. The PDS is said to distribute commodities worth more than Rs15,000crore to about 16crore families each year. The success of this huge network isdependent on its ability to translate a macro level self-sufficiency to a micro level, byensuring availability of food grains for poor households. The Public Distribution System isconsidered as the principal instrument in the hands of government for providing a safetynet to the poor and the downtrodden.

On the surface, though it might seem that the shift to the Targeted Systemwas to blame for this complete change in the Kerala Model; it becomes pretty apparent

that the blame for the decline in the utilization of the PDS cannot be blamed on the shiftalone. Firstly, the use of the number of ration cards issued was the measure of theeffective coverage of the population. However prior to 1997, the ration card was theprimary identity card for the population and holding one was necessary for getting things

like gas connections. However today there is a voter ID card and bankcards can also beused as ID cards. Hence the need for holding a ration card is no longer pressing. Mostpeople don t bother renewing their cards at all. It is only now, when inflation is spiralinghigh that some APL families are coming back to the ration shops according to FPS owners.


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PUBLIC DISTRIBUTION SYSTEM

Public Distribution System (PDS) is an Indian food security system.Established by the Government of India under Ministry of Consumer Affairs, Food, andPublic Distribution and managed jointly with state governments in India, it distributessubsidized food and non-food items to India's poor. The focus and coverage of PDS havechanged widely over the years. Initially during the World War civilian consumption wasrestricted so as to divert food items to meet the food requirement of defense forces.Subsequently frequent occurrence of drought throughout the country made the plannersthink about food shortages. In order to overcome these shortages, the ration system cameinto existence. Fair Price Shops were opened to distribute the items of mass consumption inurban areas. Thereafter, it was extended to rural areas.

From the year 1992, the Revamped PDS was introduced in those areas whereDrought Prone Area Program and Dessert Development Program were in operation. Underthis system people were allowed to purchase essential items from the FPS at relativelylower subsidized rates. After, the Chief Ministers Conference held in July 1996, a revisedscheme known as the Targeted PDS was introduced countrywide with a network of 4.74lakhFPS. Under the TPDS a two-tier subsidized pricing system is followed. Cardholders areclassified as Above Poverty Line (APL) and Below Poverty Line (BPL). The BPL families areentitled to receive the essential commodities at a price, which is very close to the economiccost. BPL families are identified based on the methodology given by Lakdawala ExpertGroup on estimates of poverty. The TPDS was further extended in December 2000 toinclude the Anthodia Anna Scheme. It consists of the identification of

10 million of the poorest families out of the total BPL population of 65.2million- the Poorest of the Poor, and provides them with 35 kg of food grains per familyper month at the price of Rs 2 per kg of wheat and Rs 2 per kg of rice

PUBLIC DISTRIBUTION SHOP

A public distribution shop also known as Fair Price Shop (FPS), part of India'sPublic Distribution System established by Government of India, is a kind of shop in Indiawhich is used to distribute rations at a subsidized price to the poor. As of date there areabout 4.99 lakh Fair Price Shops (FPS) across India.

Locally these are known as "ration shop" and chiefly sell wheat, rice, keroseneand sugar at a price lower than the market price. However, other essential commodities
http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Ministry_of_Consumer_Affairs,_Food_and_Public_Distribution_(India)http://en.wikipedia.org/wiki/Ministry_of_Consumer_Affairs,_Food_and_Public_Distribution_(India)http://en.wikipedia.org/wiki/State_governments_in_Indiahttp://en.wikipedia.org/wiki/Poverty_in_Indiahttp://en.wikipedia.org/wiki/Poverty_in_Indiahttp://en.wikipedia.org/wiki/State_governments_in_Indiahttp://en.wikipedia.org/wiki/Ministry_of_Consumer_Affairs,_Food_and_Public_Distribution_(India)http://en.wikipedia.org/wiki/Ministry_of_Consumer_Affairs,_Food_and_Public_Distribution_(India)http://en.wikipedia.org/wiki/Government_of_India


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may also be sold. These are also called Fair Price Shops. For buying items from this shopone must have a ration card. These shops are operated throughout the country by jointassistance of central and state government. No doubt the item from these shops is muchcheaper but is of poor quality. Ration shops are now present in most localities, villages,

towns and cities. India has 478,000 shops constituting the largest distribution network inthe world.The introduction of rationing in India dates back to the 1940s Bengal famine. This

rationing system was revived in the wake of acute food shortage during the early 1960s,prior to the Green Revolution.

OBJECTVES OF THE PUBLIC DISTRIBUTION SYSTEM

Indias public distributions system (PDS) with a net work of 4.99 lakh Fair price shops(FPS) is perhaps the largest retail system of its type in the worlds. Since 1951 publicdistribution of food grains has been retained as deliberate social policy by India with theobjectives of:

Providing food grains and other essential items to vulnerable sections of thesociety at reasonable prices.

To attempt socializations in the matter of distribution of essentialcommodities.

To put an indirect check on the open market prices of various items andcommodities.

Keeping a check on private trade, and Rationing during situation of scarcity.


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ANALYSIS AND DISCUSSIONS

DATA COLLECTIONARD NO: 2 PLACE: vellamundaTALUK: mananthavadyDISTRICT: wayanadLICENCE OWNED BY: shameer.KSHOP OPERATED BY: shameer.KTOTAL NO.OF CARDHOLDERS: 920BPL: 150 APL: 630 AAY: 140

Details of items and quantity distributed are given below:

RiceAAY: Andhyodhya scheme provide 35 kg @rS.1 Per Kg

BPL: 25 Kg @rs. 1 per kg

APL: 9Kg @rs.8 per kg

A scheme annapoorna giving 10 kg free irrespective of BPL and APL

WHEATBPL: 5Kg @ rs.6.70ps per kg

APL: 2Kg @rs.21 per kg

SUGARFor each member in a family provide 400gSugar is now provided only for BPL families @Rs.13.50 per

KeroseneFor electrified house-up to 1ltr @16.50For not electrified house-4ltr 16.50rs


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Atta powder

No definite quantity is to be provided @ RS.12rs

Books and journals are prepared by shop keeper

Ledger Sale register: for the purpose of recording sale Stock register: for the purpose of recording stock Card register: used for recording of ration cards Monthly indent: this should be submitted to the thaluk supply officer.

According to the monthly indent the stock are supplied Bill book: bills are provided while sales take place. Receipt is given to

consumers and the counter foil is kept in shop Visit book

INTERPRETATION

From our field visit we observed that the PDS currently suffers from a numberof issues that make it difficult for it to meet its objectives, following challenges arefaced by FPS in our locality.

There has been a decline in off take of rationed articles among APL, but now, wheninflation is spiraling high that some APL families are coming to the ration shopsaccording to FPS owners.

There seems to be leakages at some levels in the chain of distribution. Local peopleare of the opinion that often the food grains released from FCI go down do notreach the target group in same quality and quantity. Neither the department northe government has a mechanism to oversee this.

Earlier, ration scales were at fixed quantities per person or unit whereas nowirrespective of size and need, a family is entitled to a uniform quantity of 25kg riceper month per household. This has opened avenues for malpractices and


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MIS DESIGN FOR MONITORING AND CONTROL OF PDS OPERATIONS

PROFOMA FOR REPORTING THE FUNCTIONING OF FPS

Month year a) Name of state: State code:b) Name of district: district code:c) Name of block: block code:d) Name of FPS: FPS code:e) No. of ration cards attached to FPS:

AAYBPLAPLOthersTotal

commodity

Opening stock

Allocationfor themonth

Qtyreceivedby FPS

Totalqty

Qtydistributed

Closingstock

RiceAAYBPLAPLWheatAAYBPLAPL

sugarkerose

neAtta


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Repots Format (To be submitted by the vendor along with payment claims)MIS Monthly report showing allocation to FPS

Report for the month of

Date of report generation dd/mm/yr

FPS Numbe Block Quantity Allocated to FPS

Wheat

(Kg)

Rice

(Kg)

Sugar

(Kg)

Kerosene

(Liter)

MIS monthly report showing balance quantity of FPS


Date of report generation dd/mm/yy

FPS Numbe Block Balance quantity of FPS

Wheat

(Kg)

Rice

(Kg)

Sugar

(Kg)

Kerosene

(Liter)


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Details of FPS


Date of report generation dd/mm/yy

FPS Number Block District Name of

owner

Date of

Granting

Authority

To FPS

Date of

renewal of

authority

Any adverse

remark/vigilance

report

against

FPS(Yes/ No)

REPORTS TO BE SUBMITTED BY WAREHOUSES

Report on no. of FPS handled:It shall include details regarding no. of FPS served by warehouse.

Report on stock level:It shall include details of stock at the go down and the volume ofcommodities issued, minimum level of stock required during a month etc,

Report on storage facility:It shall include details of volume of space required to store commodities,existing safety measures etc,


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Report on quality control measures:It shall include details of existing quality control measures undertaken toensure quality and safety of commodities in the warehouse.

Inspection:Inspection will be conducted monthly or surprise visit may be there in the

ration shop. It is headed by district supply officer (DSO) or Taluk supply officer(TSO) or any other person appointed by DSO or TSO. By checking the actualstock with the quantity in the stock book and other books, if there is anydifferences it is to be recorded in a book called visit book and it should besubmitted to the TSOs office and also pay fine for it.

DISTRIBUTION PROCESS OF PDSa) Identification of Beneficiaries

b) Allotment of Food Grains

c) Lifting

d) Distribution

e) Transactions

f) Authorization to FPS

g) MIS Reports & Alerts

a) Identification of Beneficiaries The beneficiary information will be captured by thevendor in electronic format and would constitute beneficiary database. A onetime statewide exercise will be performed to create online database of all existing ration cards. The

application will have feature of linking /delinking of ration card with FPS, tehsi and district.This will help linking the ration card to new FPS when the beneficiary migrates from oneplace to other. The list of all the beneficiaries recorded would be category wise (APL, BPL,AAY) and FPS wise. Biometric database of all ration card holders will be maintained toensure uniqueness and authentication of end beneficiaries


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updated at regular interval (two times in a month). This will help in recording the amount offood grains actually disbursed to each beneficiary in the system. Thus timely information ofdisbursement to end beneficiaries will be available to the department. The tracking ofdistribution of food grains from FPS to end beneficiary will be done using coupons disbursedto beneficiaries. These coupons will be verified and the amount of food grains disbursed tothe beneficiaries will be recorded. FPS wise closing balance against the allotted amount willbe available and reports will be generated at District level on the basis of data at FPS level.

e) Transactions The details of the payment made by the FPS salesman will becaptured in this module. The mode of payment (Cash/DD/Cheque etc) and date of depositwill also be recorded in the system.

f) Authorization to FPS This module will be used to record the details of FPS. Theinformation captured will include Authority number, date of expiry of the Authority, nameof FPS salesman, location of the FPS, beneficiaries served by the FPS etc.

g) MIS Reports and Alerts This module will be used to generate MIS reports including

FPS wise allotment of food grains FPS wise inventory status Actual amount of food grains disbursed against the allotted food grains Monthly lifting information from each go down Beneficiary wise / FPS wise / block wise / district wise lifting details Active/Inactive FPS New authorization to FPS report Number of FPS suspended/cancelled Number of Active/Inactive FPS


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SUMMARY AND SUGGESTIONS

.The Public Distribution System (PDS) in the country facilitates the supply of food

grains to the poor at a subsidized price. However, doubts have been raised about theefficacy and cost-effectiveness of the PDS, especially in the light of the growing foodsubsidy and food stocks. The PDS needs to be restructured and there is a need to explorethe possibility of introducing innovative ideas such as smart cards, food credit/debitcards, food stamps and decentralized procurement, to eliminate hunger and make foodavailable to the poor wherever they may be in cost-effective manner.Some of the things that can be done to improve public distribution system:

Computerize the entire ration distribution system and introduce new technologyin order to stop pilferage in the system, so that the subsidized item reaches theneedy.

Biometric finger prints can be used for the identification of cardholders and toavoid duplication of cards.

GPS instruments can be fitted in the vehicles carrying food grains from govt foodwarehouses to state warehouses and they can be tracked from the data centretill the fair price shop, so that pilferage can be stopped.

A citizens chart er should be published and exhibited since, in many cases AAYcardholders are not even aware of their entitlement or price. Publication of the

charter will help to create awareness among the public about their rights andwill make the staff and FPS dealers more efficient there by weeding outcorruption.

The food stamp system can address the problem of ration being diverted intoother sources and the poor not being able to avail of the rations. An idea is thatfood stamps will be allocates to each family- perhaps a finger print system basedbiometric smart card could be given instead of a ration card, so the familysdetails could be included in the card, along with the amount of food stampseach member would be eligible for.

It should be made mandatory that every shopkeeper should submit his recordsincluding daily sales register, cards register, stock register etc to the prescribedauthority.


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CONCLUSION

The sustainability of PDS is now a matter of concern. As per the HighLevel Committee report the introduction of targeting has not reduced the expenditureon the food subsidy while it has at the same time weakened the impact of pricestabilization and weakened the overall system. However many aspects indicated in theguidelines issued by the Central Government are not yet operationalized. Overall what isneeded is the immediate implementation of guidelines issued by Central Governmentrather than the formulation of new policy directions or guidelines. Constitution ofVigilance c ommittees at various levels, publicizing citizens charter, effective supervision at all levels, sensitizing the targeted poor on their entitlements and price of commoditiesand revision of APL/BPL list need to be taken up by the Government on a priority basis, ifthe desired objectives of PDS are to be achieved.

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