PREFACE
1.
In Writ Petition(C) No.196/2001 – People’s Union for Civil
Liberties V/S Union of India and Ors., Hon’ble Supreme Court
of India by Order dated the 12.7.2006 constituted a Committee to
be headed by me to look into maladies affecting the proper
functioning of the Public Distribution System (PDS) and to suggest
remedial measures. The operative portion of the order reads as
under:
“After having heard learned counsel for the parties,
we find that there is practically no monitoring over the
sums allotted for the Public Distribution System (in
short PDS) by the Central Government, and its
utilization. The amount involved we are told is in the
neighborhood of Rupees Thirty Thousand Crores
annually. Certain suggestions have been given by Mr.
Colin Gonsalves, learned senior counsel as to the
modalities to be adopted in such cases.
At the
present stage we feel it would be necessary to
constitute a Central Vigilance Committee headed by a
retired Judge of the Court to be assisted by Dr. N.C.
Saxena, the Commissioner earlier appointed by this
Court. We requested Mr. Justice D.P. Wadhwa to head
the Committee.
The Committee shall look into the maladies which are
affecting the proper functioning of the system and
also suggest remedial measures. For this purpose the
Committee shall amongst other things, focus on:a)
The mode of appointment of the dealers,
1
b)
The ideal commission or the rates payable to
the dealers, and
c)
Modalities as to how the Committees already in
place, can function better,
d)
Modes as to how there can be transparency in
allotment of the food stocks to be sold at the
shops.
While dealing with the question of the mode of
appointment, the Committee shall also suggest as to a
transparent mode in the selection of the dealers. The
Committee shall also indicate as to how more effective
action can be taken on the report of the Vigilance
Committee already appointed. It goes without saying
that the same shall be in addition to the legal
remedies available to any citizen in setting law into
motion. We request the Committee to give its report
within period of four months so that further
instructions/directions can be given.
The Committee would invite suggestions from general
public,
organizations
and
would
consider
the
suggestions, if any received in the proper perspective.
“
2.
Hon’ble Court’s direction was initially given for the Government of
Delhi to be followed on an all India basis.
3.
Committee submitted report on Delhi on 21.8.2007.
4.
By order dated 10.01.2008, Hon’ble Court, while accepting the
report, directed the Committee to undertake a similar exercise in
terms of earlier order for the entire country.
2
5.
Scope of the task assigned to the Committee thus having been
enlarged, the Committee projected to the Department of Food &
Public Distribution, additional requirements of staff, space and
delegation of financial powers for its smooth functioning. The
Department dilly dallied and did not meet the requirements. The
Committee had to approach the Hon’ble Court again and again. It
was only after a peremptory Order dated 25.8.2008 was passed by
the Hon’ble Court that the Department started taking steps for
creating necessary infrastructure. It was only thereafter that the
Committee could start functioning in right earnest.
The Hon’ble
Court extended the time for submitting the report till April 2009.
6.
The Committee submitted its report for the States of Uttarakhand,
Jharkhand, Orissa and Karnataka. Thereafter, the Hon’ble Court has
been pleased to extend the time further till December 2009. The
Committee has since submitted the report on the State of Andhra
Pradesh and Bihar. The Committee is presently submitting its report
on the State of Gujarat.
7.
The Committee has already submitted a separate comprehensive
report on Computerization of PDS. Gujarat has done well towards
the computerization of PDS. It has however, put on hold the issue of
Smart Cards in view of the Unique Identity Project under the Unique
Identification Authority of India and the report of the Central
Government, which may link PDS to Unique ID Project.
8.
No one has doubted the utility of PDS being the need for supply of
food grains to the poor of the country at affordable rates.
Procurement and distribution of food grains is a huge and gigantic
task but the whole system is built on corruption. There are more
leakages and maladministration and benefits to the poor are low.
3
Inefficiency and corruption has made PDS corrupt at several levels
(during the course of the visit of the Committee to various places it
was found that an equal and perhaps more corruption is present in
the distribution of kerosene oil). The system lacks transparency,
accountability, monitoring and enforcement. Survey is not being
conducted regularly and properly, with the result that people Above
Poverty Line (APL) have been issued Below Poverty Line (BPL) cards
and those eligible for BPL cards have been ignored. There is also a
menace of bogus cards. Immediate measures are required to reduce
diversion of food grains. Delivery systems under the PDS have to be
improved so that the actual beneficiary gets its due entitlement at
fixed price, fixed quantity, fixed time and of wholesome quality.
Innovative methods are required to improve the system. The whole
system has to be totally revamped and modern technology appears
to be the only answer.
9.
Committee has suggested that in order to combat corruption and
strengthening PDS there has to be a zero tolerance approach.
Everything appears to be fine on paper but its implementation is
faulty.
10.
During its visit to State of Gujarat , the Committee visited districts
of Ahmedabad, Gandhinagar, Godhra Vadodra, Narmada, Rajkot,
Jamnagar and Junagarh. Apart from meeting officials of the State,
GSCSC, FCI, the Committee met across section of people. These
included NGOs, FPS owners, Transporters, Godown keepers and
beneficiaries. The Committee also inspected FPS, State Godowns
and godowns of FCI.
The Committee also visited the offices of
Food,
and
Civil
Supplies
Consumer
Government of Gujarat.
4
Affairs
Department
of
The Committee got full cooperation from the officials of the State
Government, GSCSC and the FCI. Committee records appreciation
of the assistance rendered to the Committee by various officials of
the State Government. The Committee also held public meetings at
Ahmedabad, Godhra, Rajkot and Junagarh.
In the first meeting the officers who participated are: Mr. Rajesh
Kishore - Principal Secretary, Food, Civil Supplies & Consumer Affairs
Department,
Mr. Mukesh G. Modi- Deputy Secretary, Food, Civil
Supply & Consumer Affairs Department,
Mrs. Urmila D. Patel-
Additional Collector & Food & Civil Supplies Controller,
Mr. R.R.
Chauhan- Director of Food & Civil Supplies & Additional Secretary
(Food) Mr. Hareet Shukla- Collector, Mr. J.D. Joshi- Dy. Collector
(Rural), Mr. Prashant Joshi- D.S.O. (Rural), Mr. H.M. Thakkar- Chief
General Manager,
GSCSC, Mr. Rohit Pathak- Managing Director
GSCSC, Mr. S.N. Rao- General Manager (MIS)
Vasoya- General Manager (Com-3) GSCSC,
GSCSC, Mr. J.H.
Mr. Prakash Solanki-
General Manager GSCSC, Mr. I.M. Kothawala- General Manager ,
GSCSC.
Mr. M. Jegadeesan- General Manager
FCI, Mr. M.S. H.
Costa- Dy. Genl Manager, FCI, Mr. M.T. Mathew- Area Manager,
FCI, Mr. G.B. Patel- Manager (QC) FCI.
Participants of the meetings held at various places are as under:Ahmedabad / Gandhinagar
Mr. D. Rajgopalan, Chief Secretary, Mr. Rajesh Kishore, Principal
Secretary, Food Civil Supplies & Consumer Affairs Department, Mr.
Mukesh G. Modi, Deputy Secretary, Food, Civil Supply & Consumer
Affairs Department,
Mrs. Urmila D. Patel, Additional Collector &
Food & Civil Supplies Controller, Mr. R.R. Chauhan, Director of Food
& Civil Supplies & Additional Secretary (Food), Mr. Hareet Shukla,
Collector Mr. J.D. Joshi, Dy. Collector (Rural), Mr. Prashant Joshi,
5
D.S.O. (Rural) Mr. H.M. Thakkar, Chief General Manager, GSCSC,
Mr. Rohit Pathak, Managing Director GSCSC, Mr. S.N. Rao, General
Manager (MIS) GSCSC.
Godhra
Mr. Milind Torawane, Collector Mr. Dhaval Patel , Asstt. Collector
(IAS Probationer) Mr. R.J. Pandor. Dy. Director, Food & Civil
Supplies, Gandhinagar
Mr. G.K. Shah, Dy MLR (ECA) Mr. B.N.
Ghotiya DSO Mr. J.H. Vasoya, General Manager (Com-3) GSCSC
Vadodra,
Mr. Vijay Nehra, Collector Mr. S.R. Jumtuger, Dy. MIR, Collector
Office Mrs. Asha Shah, District Supply Officer Mr. Pandar, Dy. Dir
(Food) Mr.
M.S. H. Costa, Dy. Genl Manager, FCI Mr. J.H. Vasoya,
General Manager Mr. A.M. Makwana, CSI
Mamlatdar Mr. K.C. Vasava, Dy Mamlatdar
Mr. R.S. Samgod, Dy.
Mr. Chetan Gandhi,
Mamlatdar Mr. B.R. Patel, Mamlatdar (Rural) Mrs. Meena Myamgar,
Dy. Mamlatdar Mr. Devendra M. Bumlniya, Dy. Mamlatdar Mr. J. B.
Patel, A.M., GSCSC Mr. J.M. Dalsariya, Dy. Dist. Manager, GSCSC
Narmada,
Mr. R.M. Patel, Collector, Narmada, Mr. K.V. Gavali District Supply
Officer, Mr. A. R. Varasia, District Supply Officer, Mr. N.F. Vasan,
Chief Supply Inspector, Mr. D.I. Patel, Supply Inspector, Mr. A.M.
Damul, Supply Inspector, Mr. J.N. Vasavovd, Dy. Mamladar, Mr. P.
D. Patel, Dy. Mamladar Mr. N.C. Bavia, Dy. Mamladar
Rajkot
Mr. H.S. Patel, Collector, Mr. Rajesh Kishore, Principal Secretary,
Mr. Pathak, Additional Collector, Mr. V.C.Verma, Director DRDA, Mr.
Manoj Makwana, District Supply Officer, Mr. Shivhare, DDO, Mr. J.H.
Vasoya, General Manager, GSCSC Mr. P.C. Padhya, Assistant
6
Manager, GSCSC Ltd, Gandhinagar, Mr. M.S.H Costa, Dy. General
Manager, FCI, Ahmedabad, Mr. Pankaj Thakur, Addl. Controller,Mr.
N.K. Makwana, Area Manager, FCI, Mr. J.B Ahir, Dy Director,
Gandhinagar, Mr. Mr. G.N Biholee, Assistant Director, DCS,
Gandhinagar, Mr. H.K Rattod, Dy. S.O. Civil Supply
Jamnagar
Mr. V.P. Patel, Collector, Mr. D.B. Rahevar, Dy. Collector, Kutch, Mr.
P.C. Padhya, AM, GSCSC, Mr. D.B. Rahevar, CA, HMPL, Gadhidham,
Mr. P.J. Chhata Inormation Deptt., Jam Nagar, Mr. P.B. Rawal,
Manager (QC), FCI Adipur (Kutch), Mr. N.K. Makwana, Area
Manager, Rajkot, Mr. M.S.H. Costa, Dy. General Manager FCI Mr.
J.B. Patel, AM, GSCSC, Mr. J.C. Mehta, Dy. Manager (Gr-II), GSCSC,
Kutch.
Junagarh
Mr.
Aswini
S.N.Khalyani.
Kumar,
DSO
Collector,
incharge
Mr.
Mr.
(Probationer), Mr. D.D. Jadeja, SDM,
(Mamlatdar)
Mr. Atul Khunti, DIO
D.D.
Ranjit
Jadeja,
Kumar
SDM,
Mr.
Singh,
IAS
Mr. N.A. Rajput, Tehsildar
NIC,
Mr. J. B. Patel, A.M.
GSCSC, Mr. M.S.H. Costa, Dy. G.M., FCI, Mr. S.N. Khalyani, Incharge
DSO, Junagarh Mr. N.K. Makwana, AM, FCI. Mr. A.R. Makwana ,
ACLM, Mr. J.B. Ahir, Dy. Director. Mr. B.V. Bakutra, Dy. Mamlatdar
11.
The Committee also got assistance from the lawyers recommended
by the Judges of the Gujarat High Court. The names of the lawyers
are Mr. Nirav R. Mishra and Mr.Dharmesh M. Devnani.
12.
Members of the Committee who visited the State are Ms.
Meenakshi Chauhan, Ms. Naomi Chandra and Mr. Shohit Chaudhry
(being members of Legal Team), Mr. K.K. Mittal, Director and Mr.
7
J.K. Bhutani, Section Officer. Mr. S.C. Rawal, a former Registrar of
Delhi High Court and appointed as Secretary by the Chairman, has
been performing functions of the Secretary of the Committee.
13.
The Committee is submitting its report which has been divided into
various Chapters like distribution of food grain, appointment of FPS
dealers, viability and Model Fair Price shops, identification of BPL,
fortification
enforcement
of
wheat
flour
(atta),
transportation,
vigilance,
& complaint mechanism and computerisation .
Overview has been given of the PDS in the State and
recommendations made. An attempt has been made to make each
Chapter self-contained and there is possibly a repetition at various
places.
Delhi
September 2009
(Justice D.P Wadhwa)
Chairman
Central Vigilance Committee
on Public Distribution System
8
BROAD OVERVIEW
1.
Public Distribution System (PDS) in India is undoubtedly the largest
food distribution network of the kind in the world.
While
procurement, storage in FCI (Food Corporation of India) godowns
and allocation of food grain to the States is in the hands of the
Central Government, distribution is done through the Fair Price
Shops licensed by the State after identifying BPL and AAY
population as per the estimation fixed by the Planning Commission.
Central Government is proposing to introduce National Food
Security law which would provide statutory framework to ensure
food security to all. The proposal which is yet to become a law,
makes provisions for supply of 25 Kgs. of food grain to every BPL
family every month at an average rate of Rs. 3/- per kilogram. But
the law will be rendered futile like PDS if it does not come up with
an appropriate mechanism for its implementation. PDS is, however,
synonymous with corruption. Gujarat is otherwise no different. As
mentioned in the earlier reports of the Committee on different
States, there is a web of corruption woven around FPS by
politicians, bureaucrats, transporters and officials of the Food
Supplies Department and Civil Supplies Corporation. They are all
shameless people having no inhibition depriving the poor of their
food.
2.
There are two corrupt sectors in PDS, one is distribution of food
grain and the other is distribution of kerosene oil. In PDS it is the
Fair Price Shop (FPS) which is the breeding ground of corruption.
No doubt FPS is an important link in the distribution of PDS food
grain but it is in the knowledge of all, whether he be a politician,
bureaucrat or any other public servant that an honest FPS owner
cannot survive from the income earned from FPS and that he has to
indulge in diversion of food grain in black market. PDS food is
9
meant for the poor. There being no sustainable income for the FPS
dealer, yet there is clamour for allotment of FPS. The answer is not
far to seek. All are involved in this crime of diversion whether be it
the FPS owner, a transporter or an official or a bureaucrat or
politician.
3.
State Government has done pioneer work in the fields of
establishing Model Fair Price Shops; supply of fortified ‘atta’ (wheat
flour) instead of wheat to PDS beneficiaries; computerization to
envisage scheme of Smart PDS – a complete e-Governance solution
of PDS.
4.
Gujarat Government is supplying fortified “atta” (wheat flour) to the
beneficiaries of Antyodaya Anna Yojana (AAY) instead of wheat.
State Government has now proposed to supply fortified “atta”
instead of wheat even to beneficiaries of Below Poverty Line (BPL).
To fortify the “atta” Folic Acid and iron is added and there is a
proposal now to add soya as well. Supply of fortified atta instead of
wheat has, to a great extent, checked the diversion of wheat in the
black market.
Opposition to supply of fortified atta instead of
wheat came mostly from the Fair Price Shop (FPS) owners. Some
NGOs have also opposed supply of fortified atta and for this they, it
appears, get support from a letter dated 1.10.2007 of Dr. Veena
Shatrugna,
Hyderabad.
Deputy
Director,
National
Institute
of
Nutrition,
On this letter, Dr. S.K. Nanda, Principal Secretary,
Food & Civil Supplies of the State Government sought opinion of
the Director of the Institute.
Dr. B. Sesikeran, Director of the
Institute sent his opinion by letter dated 3.10.2008.
He did not
commend the opinion of Dr. Veena Shatrugna and rather
appreciated the stand of the State Government in supplying
fortified ‘atta’. The Committee has examined all these aspects and
is of the opinion that benefits of supply of quality fortified atta
10
instead of wheat out-weighs any criticism that shelf-life of atta is
only 45 days. In a separate chapter of Fortification, Committee has
examined in detail the pros and cons of the scheme of supplying
fortified atta.
5.
Some of the participants in the public hearing said that allotment of
food grain was not enough for the families and the allotted food
grain is consumed within 7 to 10 days. Principal Advisor to the
Commissioners of the Supreme Court in the Right to Food case has
said that the nutritional norms of the Indian Council of Medical
Research would require the consumption of at least 70 Kg. of food
grains for a family of 5 in addition to proteins (through pulses) and
other essential nutrients.
It, therefore, appears rather peculiar
when argument is made by the NGO that shelf life of the fortified
atta is only 45 days. No family would therefore keep atta even for
more than 30 days.
6.
PDS in the State functions in two ways: one is Department of Food,
Civil Supplies and Consumer Affairs. This looks into allocation of
PDS food grains to the Districts, grant of licences for FPS, ration
cards and Vigilance & Enforcement. Gujarat State Civil Supplies
Corporation (GSCSC) looks into the distribution of allocated food
grain from FCI to the State godowns maintained by GSCSC.
Thereafter it is the FPS owner who lifts the entitled stock from the
State godowns.
After the introduction of fortified atta scheme,
Corporation transports the allocated wheat from FCI godown to
specified flour mills. Fortified atta is then lifted by the Corporation
from the flour mills. Atta bags are then lifted by the FPS owner
from the State godown as per his entitlement.
7.
FPS is not a profitable proposition. However, it is also apparent that
the FPS owners are not interested in selling other grocery items
11
from the shop. They have even the added advantage of a fixed
number of ration card holders as potential customers to buy
grocery items. No amount of increase in commission, even by
100%, to an FPS owner will make his shop viable for him to earn
sufficient income. An FPS owner can certainly add to his income by
selling grocery items from his shop but, it would appear, greed
overtakes to make a quick buck from the black-market and to share
his
ill-gotten
income
with
corrupt
officials,
politicians
and
transporters. There is no prohibition from the State
for the FPS
owner to sell other non-PDS items from his shop.
Diversion is
lucrative business considering the vast difference between the PDS
food grain price and the market price.
8.
In a separate chapter of Viability of FPS, the Committee has pointed
out that an FPS owner even with 500 cards has low income and he
cannot survive except for diverting PDS food grains to blackmarket.
The Committee has given figures to substantiate this
point. A stand alone FPS is not at all a profitable proposition. State
Government has now come up with Model Fair Price Shop concept.
It is necessary to put a condition in the licence that the owner must
run kirana/grocery shop.
9.
It is certainly heartening to know that Gujarat Government have
started model Fair price Shops in the State. This innovative concept
introduced by the State to help FPS dealers establish higher level of
accountability, and to attract customers in large numbers. With an
objective to make FPS more viable FPS dealer is encouraged to
convert his routine FPS into model FPS. FPSs are supported by
Gujarat State Civil Supplies Corporation (GSCSC) as a facilitator to
avail loan facilities from the Nationalised Banks. If FPS operator
gets a loan of Rs.1.00 lakh, the amount of Rs.15,000/- is paid by
the Govt. as margin money (subsidy). Government of Gujarat
12
encourages suppliers to provide goods to model FPS at reasonable
rates. State Government plans to convert all FPSs into Model FPSs
by 31.3.2010. There are 11,004 model FPSs at present out of the
total 16,402 FPSs.
10.
Whatever the orders/circulars may say an officer of the Gujarat
State Civil Supplies Corporation (GSCSC) merely identifies the
wheat from the stock in the FCI godown which is to be lifted by
GSCSC under PDS. Thereafter the wheat is weighed in the truck by
FCI and the driver is given gate-pass and weighment memo. It is
the driver who takes the truck to the particular flour mill specified
where the wheat supposedly is again weighed but in fact only bags
are counted. After the wheat is ground into fortified atta and
packed in HDPE bags/plastic bags and stapled the bags which are
sent to the godowns of GSCSC where the bags are counted. Again
it is the truck driver who takes the atta bags after these are loaded
in the truck by the mill and brings the same to the godowns of
GSCSC. For proper distribution of PDS food grain, end to end
computerization is necessary. Committee would suggest bar-coding
of wheat bags from FCI to flour mills. Bar-coding for wheat bags
from FCI godowns to State godown may not be necessary as much
as it was stated before the Committee that bags arriving from FCI
godowns are opened
and each bag is standardized by ensuring
that each bag has 50 Kg. of food grain.
11.
There is no check when the truck leaves FCI godown and reaches
the flour mill and when the truck brings bags of atta from flour mill
to godowns of GSCSC. There is no check of either quality of wheat
coming to mill or the atta leaving the mill.
It is necessary that
samples of atta are taken from the flour mill and tested by an
independent agency. There should be bar-coding of wheat bags
from the FCI godowns and bar-coding machine reader be installed
13
at the flour mill. There can not be any compromise in the quality of
the wheat and fortified atta. It is the FPS owner who lifts atta bags
from GSCSC godown according to his entitlement, at his own cost
of transportation.
Time schedule should be strictly maintained
and adhered to. Considering the time factor for consumption of
atta,
is essential that there should be door step delivery of the
atta bags to FPS.
This will also add to the income/commission
earning of the FPS owner as he will save on transportation.
12.
Total ration cards in the State are 123 lakhs. Out of these AAY
cards are 8.1 lakh, BPL cards 25.7 lakh and APL cards 89.5 lakh.
(APL is further classified into APL-1 and APL-2). Within the quota
BPL beneficiary gets wheat upto 9 Kg. at the rate of Rs.2/- per Kg.
For further quantity he will get wheat at the rate of Rs.5/- per Kg.
APL-1 category will get 10 Kg. wheat at the rate of Rs.7/- per Kg.
APL-2 category which is above one lakh per annum income will not
get any PDS food grain. But it came to the knowledge of the
Committee that APL beneficiaries do not draw ration as they were
not even aware of their entitlement and the wheat allotted to them
finds its way to open market by FPS disposing it in black market.
13.
State Govt. has also taken an initiative for solving the problems of
migrating families by permitting temporary extension of the validity
of the ration cards to any FPS in the destination of his choice. This
facility of roaming ration card is limited only for migrant families
within the state. As far as identification of AAY families is
concerned, State Govt. has issued 8.15 lakh ration cards after
adopting laid-out criteria.
It is stated that over the period from
1.7.2006 to 1.7.2009 number of AAY cards has increased from
7,15,075 to 8,15,064 as a result of a drive taken by the district
officials.
14
14.
There are ghost/bogus cards in circulation which is a potential
source of diversion of PDS food grain to black market. There is no
restriction on the issue of new ration cards but these are issued
after carrying out necessary procedure and checks, particularly in
BPL and AAY categories. It is stated that during the period from
1.4.2008 to 15.8.2009, 7.01 lakh ghost cards had been cancelled
and pilot projects are underway to weed out bogus cards. Existence
and circulation of bogus cards is serious problem in all the States. It
is through the bogus cards that PDS food grain finds its way to
open market thus depriving the needy of his right to PDS food
grain. Bogus cards when found are just cancelled and no further
action is taken either against FPS owner or the officials who had
issued the bogus cards. When we put it to the officers as to why
some time they took action only against FPS owner if any bogus
card was found while the official concerned who had issued the
ration card was not proceeded against. The answer was that if
action is taken against the official either by way of suspension or
prosecution, the whole system of functioning of the Department will
collapse. This appeared to the Committee rather odd that a corrupt
system should be allowed to be continued thus frustrating the very
purpose of PDS. The Committee would suggest that a general
amnesty should be announced for surrendering of bogus cards for a
month or so. Thereafter door to door survey should be taken and if
any bogus card is found strict action should be taken not only
against the holder of the bogus ration card but also against the FPS
owner and the official concerned.
15.
Lately, perhaps as an afterthought, higher officers came up with
the explanation that bogus cards were mostly of those persons who
have migrated or perhaps died. However, the question still remains
that who was drawing the food grain against those bogus cards.
State Government has to give serious thought to the problem of
15
bogus cards. It is stated that a new initiative has been taken for eration cards and total computerization of TPDS. This will certainly
go a long way to eradicate the flow of bogus cards. State
Government has proposed Smart PDS project and IT solution for
better implementation, increasing effectiveness and efficiency of
TPDS. Committee has given a separate chapter on Computerization
in the State. The system is in place but has been kept on hold
because
of
Unique
Identification
Project
by
the
Central
Government. The Unique Identification Authority of India (UIDAI) is
a body of the Central Government and is responsible for
implementing the envisioned Multipurpose National Identity Card or
Unique Identification Card (UID Card) project in India.
16.
During the course of public hearings and also during discussions
with NGOs stress was laid on the distribution of coarse grain by FPS
outlets.
In some pockets of the State, coarse grain i.e. maize,
jowar and bajra is the staple food of most of the people. State
Govt. may make a survey/mapping of those areas and these coarse
grains can be distributed in those areas under PDS. This will help in
two ways – the State Corporation can do the procurement of this
coarse grain in the State at the MSP decided by the Central Govt.,
thus helping the farmers of the State in the procurement of this
grain at a remunerative price and the grain so procured can be
stored by the State Corporation which can be distributed under PDS
in those areas where there is a demand of this grain instead of
wheat and rice. This will also help the Central Govt. /FCI as they
need not to transport wheat and rice for distribution in those areas,
thus saving on the transportation cost and less burden on wheat
and rice in PDS. State Govt. may take up this issue with the Central
Govt. after comprehensive survey/mapping of the various areas of
the State where there is a demand of coarse grain.
16
17.
State Govt. has adopted criteria for BPL identification in 1998. BPL
cards are issued to those who had income below specified limits
and these limits were – for the urban areas Rs.500/- per month per
person or Rs.2500/- per month per family and for rural areas
Rs.323/- per month per person and Rs.1615/- per month per
family. As per these criteria of State Government number of BPL
cards is 25.68 lakhs. However, there are different criteria for BPL
identification envisaged by the Central Government. According to
Central Government estimate there are 14.51 lakh BPL families.
Though the number of BPL families as per State Government
estimate is higher than the estimate given by the Planning
Commission, yet there is demand for BPL cards.
18.
In various public meetings the Committee found that public had lot
of grievances against the functioning of FPS and the officers of the
Department and Corporation. The complaints made to authorities
went unheeded and the attitude of the FPS owners and officers was
rather rude. Most of these complaints/grievances would not have
been there if there was strong vigilance and enforcement
mechanism. Committee had suggested establishment of a toll-free
number as helpline and holding of regular PDS Lok Adalats headed
by the judicial officer of highest rank below only to the Principal
District and Session Judge in the District. PDS Lok Adalat should be
attended by the Collector/District Supply Officer and other
concerned Officers and the complaints should be properly
monitored.
Committee
is
also
suggesting
appointment
of
Ombudsman to go into the complaints of the beneficiaries.
19.
The Committee also found that there is no accountability,
monitoring or enforcement. Vigilance Committees are almost nonfunctional.
In various chapters of the Report Committee has
17
pointed out defects in the functioning of PDS particularly with
reference to enforcement. PDS has to be streamlined.
20.
Grant of licence for FPS is not a largesse which the State is
bestowing on the owner. It is a well known fact that an FPS, if run
honestly, will result in loss to the owner. FPSs are opened in each
District every year as the policy of the State Government is that
there should be an FPS for a population of 2000 in the rural areas
and 5000 in the urban areas and the distance should not be more
than three kilometers. There is no rationalization of ration cards
and the number of ration cards with an FPS may range from 150 to
2000. For an FPS owner to sustain himself and his family, blackmarketing or diversion of PDS food grain is a rule rather an
exception. In this illegal and unholy alliance depriving the poor of
their right to subsidized food grain there is collusion between the
FPS owners and the official concerned breeding corruption.
Considering these factors it is meaningless to make categories for
grant of licence to run FPS. FPS for sale of food grain is meant for
the beneficiaries and not for the owner of the FPS. To illustrate, as
per policy preference is to be given to unemployed educated youths
and in that if it is an M.A. gets preference over B.A. and B.A. over
F.A.
State Government will grant a licence of FPS to a post
graduate person ostensibly to earn livelihood from FPS but in fact
he would not get sufficient income for him to sustain and he will
have per force to indulge in black-market and bribing officials. All
this to the knowledge of all concerned. This way it would appear
that State Government also becomes party to breeding corruption.
21.
One of the suggestions made during a public meeting was that the
atta should be supplied in vacuum pack bags. It is certainly a good
suggestion but the cost and technical details have to be worked
out. No doubt there are many advantages if atta is supplied in a
18
vacuum pack bags particularly the shelf life of atta will increase, but
then cost may be substantial.
22.
Licence to run an FPS should be granted to a person of the locality
who is running or capable of running kirana/grocery shop. FPS
licence gives a sort of status to the holder apart from his getting
income from black market of PDS food grain. In Ahmedabad, in a
meeting with FPS owners the Committee met an FPS owner who
contested election for MLA on three different occasions. FPS
owners admitted they bribe the official concerned even to get the
FPS licence and then pay bribe every month depending upon the
number of ration cards attached to FPS in order to remain in the
business of black marketing of PDS food grain. It is certainly a
cancerous growth which has to be chopped off. PDS can function
only under zero tolerance.
FINAL REPORT
Chapter 1
INTRODUCTION
1.1
Gujarat state came into existence as a separate State on 1st May
1960 in India. The State is situated on the west coast of India
between 20-6' N to 24-42' N north latitude and 68-10’E to 74-28'E
east longitude. It is bounded by the Arabian Sea in the West, by the
States of Rajasthan in the North and North-East, by Madhya
Pradesh in the East and by Maharashtra in the South and South
East.
19
1.2
The State has an international boundary and has a common border
with the Pakistan at the north-western fringe. The two deserts, one
north of Kachchh and the other between Kachchh and the mainland
Gujarat are saline wastes.
1.3
The State has a long coast-line of about 1600 kms. and is the
longest among all States of country. For the purpose of
administration, Gujarat State at present comprises of 26 districts,
sub-divided into 226 talukas, having 18618 villages and 242 towns.
Gujarat has geographical area of 1.96 lakh sq. kms. and accounts
for 6.19 percent of the total area of the country.
1.4
According to the provisional results of Population Census 2001, the
population of Gujarat as on 1st March 2001, stood at 5.06 crore,
20
including the estimated population of earthquake affected areas.
The density of Gujarat is 258 persons per sq. km. in 2001. About
37.67 per cent population of Gujarat resides in urban areas
(Excluding earthquake affected areas). According to the provisional
results of population census 2001, the total number of households
were 96.44 lakh.1 The State has 123.2 lakh ration cards.
1.5
The Committee visited the State of Gujarat in the month of August
2009. The Committee visited the Districts of
1.6
The
(i)
Ahmedabad
(ii)
Gandhinagar
(iii)
Panchmahal
(iv)
Narmada
(v)
Dahod
(vi)
Vadodara
(vii)
Anand
(viii)
Rajkot
(ix)
Jamnagar
(x)
Junagadh
Committee
had
discussions
with
the
Chief
Secretary,
Commissioner, Food and Supplies, various district Collectors and
other senior officers of the department of Food & Civil Supplies
connected with the Public Distribution System.
1.7
The wholesale, storage, transportation and distribution in the State
are managed by the Gujarat State Civil Supplies Corporation
(GSCSC) and other functionaries of the Corporation. The Committee
interacted with various officials of the GSCSC.
http://www.gujaratindia.com/stateprofile/profile1.htm
14.09.2009)
1
21
(visited
as
on
1.8
At the district level, the Public Distribution System is managed by
the Joint Collector. The Committee held meetings and discussions
with the Collectors and Joint Collectors of the Districts.
1.9
The retail distribution of PDS items is done through authorized Fair
Price Shops and Model Fair Price Shops in the State. The
Committee visited various Fair Price Shops and Model Fair Price
Shops across the State.
1.10
In order to get public opinion, the Committee invited the views of
the general public through news papers. The Committee also held
Public meetings in Ahmedabad, Godhra, Rajkot and Junagadh. The
Committee also went to the villages to meet the consumers /
beneficiaries and the tribals and to the fair price shops and
godowns of the GSCSC.
1.11
The State of Gujarat is distributing fortified atta to the AAY
beneficiaries and the committee studied the concept pertaining to
the same. The Committee also studied the computerization of PDS
in the State.
22
Chapter 2
DISTRIBUTION OF FOODGRAINS TO TPDS
BENEFICIARIES
2.1
The State of Gujarat has 26 districts and is sub-divided into 226
Talukas. The State has 18618 villages and 242 towns. Gujarat has
geographical area of 1.96 lakh sq.kms. and accounts for 6.19
percent of the total area of the country.2
2.2
Entities Involved
I.
Department of Food and Civil Supplies
The Principal Secretary is the senior most official. The Director,
Food Controller (Ahmedabad city), Controller (Legal Metrology)
and Managing Director GSCSC
assists the Principal Secretary.
Hierarchy in the Department is as follows
Principal Secretary
Director, Food and civil Supplies Department
Food Controller, Ahmedabad
city
Collector
District Supply Officer(DSO)
Mamlatdaar
II.
2
Food Corporation of India (FCI)
http://www.gujaratindia.com/stateprofile/profile1.htm
23
The State is divided in 4 FCI district, Ahmedabad, Baroda, Rajkot
and Adipur. FCI is having 5.80 lakh MT covered storage capacity
and 27 Lakh MT storage capacity in cap, thus having total
capacity of 6.07 lakh MT. There are 15 FCI godowns of their own
and 7 CWC godowns and 3 State Govt. godowns in the State.
III
Gujarat State Civil Supplies Corporation Ltd. (GSCSC)
The Corporation has been entrusted with the work of procuring
essential commodities and arranging their distribution especially to
the vulnerable sections of the society. GSCSC is the Nodal agency
wholly owned by the State Government for the implementation of
various schemes related to food like TPDS, MDM Anganwadi. The
main activity of the Corporation is procurement, transportation,
storage and distribution of essential Commodities. The annual
turnover of GSCSC rose from Rs. 80 crores in year 1980-81 to Rs.
1168 crores in 2008-2009. The State has 192 block level godowns
of GSCSC.
Hierarchy at GSCSC at District level
District Manager/ City Manger
2 Class II officers
Asst. Managers
Godown Mangers
Senior Assistant.
Assistants.
24
In a District senior most official is District Manager. Under him
there are class-II officers. They look after affairs relating to
Accounts and Administration. Asst. Managers directly reports to
the District Manager and also supervises affairs of the Godown
Manager. The Godown Managers in Godown issues stock to FPS
dealers and maintains records. Under Godown Manager there are
Senior Assistants and Assistants who does clerical work pertaining
to Administration and Accounts.
2.3
2.3.1
Allocation of Foodgrain
The Government of India allots quota of foodgrain to the State
government. State government has nominated the Gujrat State
Civil Supplies Corporation (GSCSC) as a State Agency. The head
office of the GSCSC deposits money with the FCI which in turn
issues the release orders for the grain. After receiving the release
orders the GSCSC lifts the stock from the FCI godown. Two
representatives of the GSCSC who are called District Godown
Inspector (DGI) are present at the FCI at the time of lifting of the
stock to inspect the quality and quantity of stock to be lifted. The
Transportation of stock is done through Contractors appointed by
GSCSC through tender process.
2.3.2
The State Government makes the district wise allocation of
foodgrains. District Collector makes the Taluka wise allocation.
Taluka Mamlatdar (Tehsildar) makes the allocation to the Fair
Price shop keepers and issues the permit to the FPS dealer. Permit
to dealer and ration cards to beneficiaries are issued by
Mamlatdar in Rural Areas and in City / Municipal Corporation
Areas by Zonal Officer. In few districts, it was told that FPS dealer
takes sales register to Mamlatdar who checks the Closing Balance
and then decides the Allocation of FPS dealer for the next month.
25
However, at Zonal office – 1 Jamnagar it was informed that the
closing stock is submitted by the FPS dealer between the 1st and
the 5th of each month through the ‘Stock Patra’. The Stock Patra
contains the details about distribution of foodgrain i.e of the
number of cards at the FPS, the number of beneficiaries who
withdrew their allocation, the opening stock of the previous
month, the stock received in the previous month, the present
stock, the sales, the loss in transit as per permitted norms, total
sales and the closing stock. A loss of upto 5% is allowed as per
rules however as a general practice, the dealers do not show a
loss of more than 1%- 1.5 %. It was informed that at the time of
submitting the ‘Stock Patra’, the dealer is not asked for the Stock
or the Sale Register to verify the details given by him. Apart from
the Stock Patra, the dealer submits an Indent Form which
contains his demand of ration for the month on the basis of the
details given in the Stock Patra. Tehsildaar/ Mamlatdaar then
gives the permit to the FPS dealer which is in triplicate, one copy
for Mamlatdaar, one for dealer and one to be submitted to
Godown Manager by the dealer.
2.3.3
FPS dealer makes the payment by depositing money in bank
against the permit issued by Mamlatdar in rural area and Zonal
officer in urban areas. He then approaches the GSCSC Godown
Manager and shows the Permit and bank challan (receipt); on that
basis the quantity of foodgrains is issued to the FPS dealer by
Godown Manager. There is no provision to check whether the
stock has reached Fair Price shop. No officer visits the shops to
sign the stock register after verifying that stock lifted from GSCSC
godown has reached the shop.
2.3.4
Sarpanches of Villages informed the Committee that they are not
aware of the quantity of stock received by FPS dealer.
26
It is
pertinent to mention that Sarpanch is the member of Vigilance
Committee. Many Sarpanches of tribal villages complained that
they do not have information about the quantity of stock received
by the FPS dealers. The FPS dealers have to submit Stock Patra to
get Permit for allocation of next month. However, the same Stock
Patra is not required to be signed by members of Vigilance
Committee. The Stock Patra should be certified by the Members of
the Vigilance Committee to the fact that the stock mentioned was
properly distributed to beneficiaries and was not diverted to
ensure proper monitoring of distribution of foodgrains by FPS
dealers.
2.3.5
Committee is of the view that Panchayat/ Municipal Body should
be informed above the stock received at the FPS by sending a
copy of allocation order and they should display the allocation at
prominent place at Panchayat. System should be evolved to keep
a check that right quantity and quality has reached fair price shop
for distribution.
2.4
STORAGE GODOWNS
The Committee visited the Camp Godown of GSCSC in Ahmedabad on
23rd August 2009 and observed following facts:
i.
Storage space : The Godown has capacity of 30,000 MT.
There are 62 sheds in the Camp godown.
ii.
Staff : Senior most official is City Manager. Under him there
are 2 officers to look after affairs relating to Accounts and
Administration. There are 6 Asst. managers who directly
report to the City Manager. Asst. Manager supervises activity
of godown Manager. There are 8 Godown Managers in the
27
said Camp Godown who issue stock to FPS dealers and
maintain records. Under Godown Manager there are 9 Senior
Assistants and 23 Assistants who look after work pertaining
to Administration and Accounts.
iii.
Weighment: The weigh bridge in the godown was not
electronic and it could weigh maximum 30 MT weight. The
Stock received in the Godown is weighed in the said
Weighment Bridge. The standardization of bags had been
done in the godown and there were 12 Electronic
Weighment Machine in the said godown for Standardisation
of bags.
iv. Standardization of bags: When stock arrives at the GSCSC
godown the bags are standardized. Standardization is a
process by which each bag is weighed on a weighing scale to
ensure that each bag contains 50 kg. grain. In case there is
excess or shortage of grain, the bag is opened and
standardized by adding or removing grain so that the final
weight of the bag is 50.6 kg. Thus, all the bags are weighed
again at GSCSC godown and standardized so far as weight is
concerned. The bags are then machine stitched with normal
thread by single stitching. Stamping is also done while
standardization mentioning the scheme, place and year.
v.
views of officer and labours regarding HDPE bags: At Camp
Godown, Ahmedabad, it was told that it is not easy to stack
and labours often slip and get injure while doing stacking of
HDPE bags. Further more than 20 bags high stacking of bags
can’t be done. It is not easy for labours to stack them as by
using hooks bags tear. However, for sampling the parkhi can
be poked and grain can be taken out for checking the quality
28
of grain while preserving stock at godown. Apart from this
there were about 25-30 labourers at the godown to load,
unload and weigh the stock at the godown. These labourers
are hired by a contractor.
2.4.3
Committee visited City Godown, Bedeshwar, in Jamnagar on 27th
August 2009 Godown incharge Mr. R.R. Verma and Assistant
Manager (Quality Control), Mr. J.V. Desai, were present. Atta bags
are received from Empire Flour Mills at Rajkot. Committee
observed that receipt of atta from Mill and issuance to FPS was
continuous process and Godown received 800 bags on 18.7 09,
1000 bags on 1.8.09 and again 800 bags on 9.8.09. The stock
received on 18.7.09 was issued between 3rd August 09 to 7th
August 09.
2.4.4
The Committee visited Gandhi gram godown on 29th August 09 in
the Junagarh city. Records showed that there were 46 atta bags
in stock in the godown on that day. The AAY wheat atta stock was
received from Vanraj Flour Mill. The date of packaging on the
bags was 02.08.2009. The stock was received at the godown
03.08.2009. The Committee was informed that the atta received
by 03.08.2009 will be disposed off / distributed between 1st to 10th
September 2009.
2.5
Targeted Public Distribution System (TPDS)
2.5.1
The Government of India has introduced a new scheme namely
“Targeted Public Distribution System” (TPDS) effective since 1st
June-1997. The Government of Gujarat has also implemented this
scheme, which was initially divided in two parts APL and BPL, but
due to implementation of “Antyodaya Anna Yojana” since July2001, it is divided into three parts i.e. APL, BPL, AAY.
29
2.5.2 The State Government has divided beneficiaries in 4 categories as
under:
i.
Above Poverty Line-2 (APL-2) families, having annual income
above one lakh.
ii.
Above Poverty Line (APL-1) families, having annual income
above Rs.11000 and less than one lakh.
iii.
Below Poverty Line (BPL) families, having annual income of
Rs.11000 or less.
iv.
The poorest of poor families among the BPL families
(Antyodaya Anna Yojana).
2.5.3 There are 1,23,19,318 ration cards in the State. The State has
divided PDS beneficiaries into APL-2, APL-1, BPL and AAY. Total no.
of Ration Cards in the State3
AAY- 8.1 LAKHS
BPL – 25.7 LAKHS
APL- 89.4 LAKHS
2.5.4
Above Poverty Line scheme:
(i)
Under Above Poverty Line -1 Scheme, wheat is distributed at the
rate of 2.5 kg. per head and 10 kg. Maximum per card per month
at the rate of Rs.7.00 per kg. and rice is distributed at the rate of
2.5 kg. per head and 10 kg. maximum per card per month at the
rate of Rs.10.00 per kg. to the APL card holders. This scheme
covers 89.4 lakh families of the State. In the Reply dated 23rd April
2008 Govt. has mentioned that APL families are given 2.5 kg rice
per head/ per month and maximum of 10 kg @ Rs. 10 /kg.
3 Presentation by the Principal Secretary of Food and Civil Supplies Dept. before
the Committee on 24th August 2009 at pg 6.
30
However during visit to state Committee was informed that
presently no rice is given to the APL families.
(ii)
Beneficiaries under Above Poverty Line-2 category are not getting
any commodity under TPDS
(iii)
APL Rice
Under this scheme during the year 2006-07, the State Government
had distributed 46297 MT of wheat and 30080 MT of rice4. As per
Government of India though 1056.948 MT rice was allotted for
state, only 34.398 MT rice was lifted by State Government for APL
in 2006-2007.
For Year 2007-2008 Central Government allotted
147.36 MT APL rice and State lifted only 51.598 MT rice. In Year
2008-2009 Central Government allotted 5.218 MT rice to State
however, State lifted more than that i.e. 7.143 MT. In month of
April 2009 though there was no allotment by Central Government,
State lifted 0.359 MT rice.
(iv)
APL wheat
So far as wheat is concerned following table shows the lifting by
State.
Year
4
Allotment of APL rice by Lifting by State Govt
Central Govt. in MT
MT
2006-2007
387.456
73.88
2007-2008
126.027
51.159
2008-2009
210.273
63.722
http://www.gujaratindia.com/usefulinfo/ser0708.pdf
31
(v)
In the Reply dated 23rd April 2008 Govt. has mentioned that APL
families are given 2.5 kg rice per head/ per month and maximum
of 10 kg @ Rs. 10 /kg. However during visit to state Committee
was informed that officially no rice is given to the APL families at
present. All the APL-1 card holders have a grievance that they are
being supplied only kerosene and they were not aware of their
entitlement of wheat and stated they are not supplied wheat.
Thus, the State’s initiative to create APL-1 category was a positive
step. But the same become useless as the APL-1 beneficiaries are
not getting any foodgrain. The foodgrain for APL beneficiaries
allotted by Central Govt. is not lifted by State fully. Committee
found that by seeing no. of cards it is not easy to calculate the
total requirement for APL-1 beneficiaries as the entitlement fixed
is on unit system. Committee observed that though some lifting
has been done by State government for rice and wheat in APL
category non of the APL-1 beneficiaries whom Committee met
was getting foodgrain. All of them stated that they only get
kerosene oil that too less in quantity. It is worth noting that in
year 2006-2007, 2007-2008, 2008-2009 APL foodgrain (rice and
wheat) was allotted by Central Government yet State Government
lifted only 7.497 % , 37.587 %,32.885 % respectively . The
reason for lesser lifting is not clear. State has created APL-1 which
is similar to Marginally Above poverty line families as suggested by
Committee in Delhi Report. Committee observed that foodgrain
entitlement fixed for APL-1 beneficiaries is less and is not 35 kg.
(vi)
Committee visited villages Khojalvasa, Nada in Sehera Taluk, Yeral
in Kalol Taluk, Paroli
in Gogamba Taluk in Panchmahal Ditrict
and found that none of the APL-1 beneficiaries were aware of the
fact that they are entitled to get wheat also. Soma Bhai (APL-1
card 0010532) and the family of Natwar Singh Val Singh (APL card
no 0011171) of Khojalvasa village stated that they do not get
32
foodgrain. APL beneficiaries in Aslali village, Taluk Draskoi
Ahmedabad stated that they only get kerosene oil and do not get
foodgrain. They were not aware of their entitlements of APL rice.
During visit to beneficiaries and FPS owned by Sureshbhai
Ramnesh bhai Chorwada, in Ambedkar Nagar in Junagarh district
the Committee found the FPS was closed and the beneficiaries
had following complaints
 APl – 1, card holders informed by the dealer that they are only
entitled to Kerosene.
 The APL – 1, card holders were not supplied Wheat though
entitled and though demanded by them.
 Shop opening for only 2 hours in a day and that too only for 15
days.
2.5.5
i.
Below Poverty Line Scheme:
Under this scheme, 1.5 kg. wheat per head and maximum 9 kg.
wheat per card per month is distributed at the rate of Rs.2 per kg.
1 kg. rice per head and maximum 3.5 kg. rice per card per month
is distributed at the rate of Rs.3 per kg. to the BPL card holders.
In addition of above quantity 5 kg. wheat @ Rs. 5 per kg and 2.5
kg. rice @ Rs.6.70 per kg
is distributed to the BPL families.
Presently this scheme covers 25.7 lakh families of the State.
ii.
Observation regarding BPL beneficiaries in different villages BPL
card holder: Shanta Ben of Nada Village stated that she purchases
5 kg wheat usually though it depends upon the availability of
money. Laddu Ben Udaji Thakur BPL beneficiary in Aslali Village
Ahmedabad got 2 kg rice and one kg sugar till March and she paid
20 Rs for it. She does not buy wheat as she gets wheat from the
place where she works as labour. She earns Rs. 40 per day as
labourer. As FPS dealer does not give on credit so they prefer to
buy from market. Balu Singh Gandaji Thakhur another BPL
33
beneficiary of same village gets kerosene oil, FPS dealer sell 2 kg
sugar for Rs. 64. no entry on card regarding that. Wheat and rice
is not given by FPS dealer
2.5.6
i.
Antyodaya Anna Yojana :
The poorest of poor families are covered under this scheme. As
per the target given by Government of India, the State
Government has covered 8.1 lakh families. The scheme has been
implemented since July-2001. Under this scheme 28 kg wheat
was at the rate of Rs.2 and rice was distributed 7 kg. @ Rs.3 per
card per month from October- 2004 to May-2006. From June2006 Government of Gujarat has decided to distribute 19 kg.
wheat and 16 kg. rice i.e. 35 kg. total foodgrain. The distribution
price has been kept the same.
However, presently 16.7 kg
wheat atta @ Rs. 38 per bag and 16 kg Rice@ Rs. 3 per kg is
given to every AAY family.
ii.
Observation regarding AAY beneficiaries in different villages: AAY
beneficiary in Paroli village, Taluk Gogamba, Dist. Panchmahal
informed that she get one bag of atta, 6 kg of rice and 2.5 kg
sugar for which she pays Rs.100. She gets 7 litre of K. oil for
which she pays Rs. 65/- thus in total she pays rs.165. Kamlaben
Jeshaji Thakur
residing in Aslali village ,Taluk Draskoi,
Ahmedabad, stated that she gets 5 litre kerosence. She is the
only member in family and is very old lady of more than 75 years
age. She stated she went to Tehsildar who converted card from
APL to BPL by writing BPL on the Card by pen. It is submitted as
per the AAY norms she should be given AAY card however, she
had APL-1 card. Manually converting APL-1 card to BPL card is
useless and it won’t help beneficiaries.
34
2.5.7
Present Scale of Distribution of Essential Commodities, Issue Price
thereof:
CATEGORY
BPL
BPL
Sp BPL
Total
allocation
of BPL
AAY
APL1
APL -2
2.5.8
WHEAT
1.5 kg per
head and
maximum
9 kg per head
@Rs2/kg
5kg@Rs 5/kg
14 kg wheat
RICE
1 kg per head and
maximum 3.5kg @
3Rs./kg
Total Foodgrain in Kg.
2.5kg @6.70/kg
6 kg Rice
20 kg
16.70 kg Atta
@ Rs 38 per
bag
2.5 kg per
head /per
month and
maximum limit
is 10 kg per
card @ Rs 7
per kg.
16 kg Rice @Rs 3/per kg
32.70 kg
In the Reply dated
23nd April 2008
Govt. has mentioned
that APL families are
given 2.5 kg rice per
head/ per month
and maximum of 10
kg @ Rs. 10 /kg.
However during visit
to state from 21st
Aug’09 to 30th
Aug’09 Committee
was informed that
presently no rice is
given to the APL
families.
-
2.5 kg per head and
maximum upto 10 kg
However, Committee
found that no
Foodgrain is given to
APL-1 beneficiaries and
all the beneficiaries
with whom Committee
interacted were
unaware of their
entitlement of
foodgrain.
-
-
As per the directions of the Hon’ble Supreme Court, the
beneficiaries are entitled to 35 kg of foodgrain. Thus, considering
that a family has 5 members on an average, if the State
Government follows the unit system and distributes foodgrain as
per the number of members in family, it should be 7 kg per unit.
The State is however distributing lesser quantity to individual
beneficiary.
2.5.9 Lifting of grain by the State
BPL – 92.44%
AAY – 98%
APL – 34%
35
2.5.10 Free of Cost foodgrain for attaining Food security for starving and
malnourished.
State Government has decided procedure to give foodgrain free of
cost to prevent deaths due to starvation or malnutrition.
District
Supply Officer and TaluK Mamlatdar are empowered to give 10
quintal foodgrain per month to actual beneficiary of scheme after
self verification and inspection. Under this scheme following
persons are entitled to get foodgrain free of cost.
1. Person / Family who has no ration card.
2. Poor shelter less persons and hospitalized patients who require
foodgrain
3. Labourers who are unable to work
4.
Every such family is eligible for 10-15 kg foodgrain free of cost
per month for six months.
2.5.11 During the course of public hearings and also during discussions
with NGOs stress was laid on the distribution of coarse grain by
FPS outlets.
In some pockets of the State, coarse grain i.e.
maize, jowar and bajra is the staple food of most of the people.
State Govt. may make a survey/mapping of those areas and these
coarse grains can be distributed in those areas under PDS. This
will help in two ways – the State Corporation can do the
procurement of this coarse grain in the State at the MSP decided
by the Central Govt., thus helping the farmers of the State in the
procurement of this grain at a remunerative price and the grain so
procured can be stored by the State Corporation which can be
distributed under PDS in those areas where there is a demand of
this grain instead of wheat and rice. This will also help the Central
Govt. /FCI as they need not to transport wheat and rice for
distribution in those areas, thus saving on the transportation cost
and less burden on wheat and rice in PDS. State Govt. may take
up this issue with the Central Govt. after comprehensive
36
survey/mapping of the various areas of the State where there is a
demand of coarse grain.
2.5.12
Observations regarding Functioning of Fair Price shops in Gujarat
and Grievances of Beneficiaries
There are 16402 Fair Price shops in the State of Gujrat. State
Government appoints Fair Price Shop dealer for population of
about 2000 in rural areas and
5000 in Urban areas and if
distance of shop from residence of beneficiaries is more than 3
km.
In order to make FPS viable retail outlet Government
encouraged FPS dealers to convert their routine FPSs into
model FPSs. There are
total 16,402 FPS.
11,004 model FPSs at present out of the
Committee was informed
by the Principal
secretary of Department of Food and Civil Supplies that
in
remote salt producing areas , GSCSC operates 4 mobile Vans in 4
Districts. These mobile Vans sell PDS as well as non- PDS
items to the people
living in these areas at their door step.
Committee visited many Fair price shops including Model fair price
shops and observed following:
1.
List of beneficiaries attached to a Shop was not available with the
dealers of the Shop visited by the Committee.
2.
Dealers stated that No. of persons in a family is not known to
dealers, and when they issue Ration they check the Ration card as
the same is written on ration card and they give ration by seeing
the units mentioned on the card.
3.
There were no signature of beneficiaries on Sales Register. The
Dealer stated entry in Sales register is not made at the time of
sale and same is filled later on. As there is receipt system and he
gives receipt to beneficiaries, he later does the accounting and fills
sales register.
37
4.
Shops do not open regularly. For instance, there were two Fair
price shop in the Aslali village, one conventional Fair Price shop
and other Model Fair price shop Both were closed.
shop of Ganesh Mal Hansraj ji Purohit
Fair price
at Kalupur was found
closed. The FPS shop for Village Anadu , Taluka Dediapada ,
Narmada District
is in village Patvali and dealer opens shop
only for 5-7 days. The distribution of foodgrain to beneficiaries is
irregular and in adequate.5
5.
Beneficiaries in Aslali village, Draskoi District, Ahmedabad stated
i.
The dealer opens the shop only twice a week.
ii.
Many of the ration cards did not have leaflets for the year 2009
and thus no entries were being made by the dealer on the
card. The beneficiaries had not obtained a fresh ration card
once leaflets of the previous one was over.
iii.
The AAY beneficiaries used to take atta but it was of bad
quality and inedible so they have started taking wheat grain
instead. How the dealer managed to allocate wheat grain to
AAY beneficiaries could not be ascertained as the shop was
closed.
iv. Ration cards of some beneficiaries had been lying at the FPS
for the past 2-3 years. Though they were getting their monthly
entitlement of ration.
v.
BPL beneficiaries were not getting ration in the village. FPS
dealers told them that government is not issuing any ration for
their category.
vi. Few beneficiaries who deserved to be in AAY category had
APL-1 card.
6.
Dealers stated they do not receive sample of grains from GSCSC.
Representation of Residents of Village Anadu, Taluka Dediapada, Narmada
District.
5
38
7.
FPS dealers were indulging in malpractices like incorrectly filling
entries in the ration cards of the beneficiaries. For instance on
inspection of records of FPS dealer Narendra Suresh Bhai Vaghela,
Registration No.09133 at Shahibag Ahmedabad, he was found to
make false entries in the Register.
8.
The Committee visited the FPS of Haroon A. Bakhar (License
No.22/04) located in Satpur Society, Faizalpur Road in Godhra
Dealer was running shop since 1998. The Committee inspected
the stock register and found that in every commodity the FPS
dealer had accounted for the loss of grain. The Stock register for
wheat showed a loss of 2.5 kg. for 3 days. It was explained to the
Committee by the officials that a loss of 1% was allowed towards
transportation. The FPS dealer in turn stated that this loss was
towards spillage. The Committee found that there was a lot of
discrepancy in the closing stock reflected in the stock register and
the actual stock present in the FPS. Closing stock of rice was
reflected as 3.61 Quintal whereas only 0.15 Quintal was available
in stock whereas closing stock of wheat was reflected as 6.81
Quintal whereas only 0.50 Quintal was available in stock.
Furthermore, closing stock of atta was reflected as 41 bags
whereas only 13 bags were available in stock. The inspector was
directed to file a report before the Committee with regard to the
action taken against the FPS dealer with respect to the above
discrepancies. The Committee also spoke to a large number of
beneficiaries who had gathered around the FPS. They complained
of various problems like bad quality of wheat and atta and
incorrect entries by the FPS dealer in their ration cards. They also
complained of less allocation of grain.
9.
Committee met few Beneficiaries of Kalupur in Ahmedabad.
Makshud Bhai, Md. Umar Bhai stated APL -1 beneficiary do not
39
take foodgrain from Firoz Store. They also stated that
lorry /
Hawkers sell kerosene oil only 3 days in a month at 4 a.m they
also black market kerosene oil @ Rs. 30 per litre. Price at which
Government gives Kerosene oil to PDS beneficiaries is Rs. 8.80 /per litre.
10.
At Aman Park Colony (Rehabilitated Colony), Satpur in Godhra,
the Committee spoke to a number of AAY beneficiaries mainly
with regard to the atta received by them. The beneficiaries in
general were not satisfied with the quality of atta which they felt
was too coarse and had a high proportion of bran. The Committee
took a sample of atta from a beneficiary. The beneficiary informed
that sometimes the atta is of even worse quality. Upon further
enquiry the beneficiaries informed the Committee that they did
not have a problem with fortification of atta per se, however, they
are not satisfied with the quality of the atta. They stated that they
often find it too coarse and with a high proportion of bran. They
also find insects in the atta.
11.
The Committee spoke to a number of beneficiaries at village
Jasalpur, Rajpeepla in Narmada District. most of whom were
being overcharged by the FPS dealer. A number of beneficiaries
were also unaware of their actual entitlement. Some AAY
beneficiaries informed that some times they get wheat grain
instead of atta. The Committee received the complaints against
atta
regarding
high
chaff
content,
Presence
of
insects,
Consumption of which causes stomach indigestion. None of the
APL 1 beneficiaries were aware that they were entitled to wheat
grain. Thus they did not ask for it. The FPS dealer of these
Beneficiaries Mr. Ramesh Bhai Machhi stated that he did not
receive the entire allocation.
40
12.
Village Gadeth, Rajpeepla in Narmada district is the village of
forest tribals who are doing mazdoori on agricultural land. They
were not aware of their actual entitlement of ration. They also
complained of being wrongly identified as BPL instead of AAY.
They had no complaints against the FPS dealer.
13.
Visit to Siddhivinayak Trust FPS in Rajkot reveals the following
details pertaining to AAY wheat flour distribution
i. on 01.08.09 Stock came at GSCSC godown.
ii. On 07.08.09 it was issued to the FPS.
iii. On 08.08.09 it was received at the FPS
iv. On 24.08.09 the last bag was distributed to the beneficiary.
Thus, 25 days had already lapsed by the time the atta reached
the beneficiary. Besides this, the number of days at the flour mill,
the days from the Mill to the godown have not been taken into
account Some of the atta bags at the FPS did not bear the date of
packaging.
14.
Bileshwar Grahak Sarkari Bhandar License No.63/05 situated at
Gandhigram, Junagarh. Name of the dealer is Rajabhai.
The Committee spoke to a number of beneficiaries in the colony in
which the said FPS is functioning found the following :
i.
The dealer was overcharging to the tune of about Rs.15/from beneficiaries who purchased wheat, rice and sugar.
ii.
Many AAY beneficiary strongly complained against the quality
of the atta being given to them under PDS. They complained
that it was either of bad quality or so coarse as to make it
inedible.
41
iii.
None of the of the APL 1 beneficiaries were receiving any
ration other than kerosene. They were not even aware that
they are entitled to wheat as well.
2.6
FINDINGS
1.
There was complaint about bad quality of wheat and atta
provided to the beneficiaries.
2.
No sample is issued by GSCSC to FPS.
3.
Shops do not open daily in villages, though MFPS are better
option still committee found that MFPS also do not open
daily in rural areas.
4.
APL-1 Beneficiaries are not getting ration and they were not
aware of their entitlement.
5.
BPL beneficiaries at some places are not getting foodgrain
and they are also not aware about their entitlements and are
told by the FPS dealers that no ration has been allotted by
Government for them.
6.
As per the directions of the Hon’ble Supreme Court, the
beneficiaries are entitled to 35 kg of foodgrain. Thus,
considering that a family has 5 members on an average, If
State Government follows the unit system and distributes
foodgrain as per the number of members in family, it should
be 7 kg per unit. The State is however distributing lesser
quantity.
7.
Atta bags contain 40-50% chaff and is often insect infested.
8.
At some places it was found that beneficiaries were not
aware of rates and FPS dealer was charging higher rates.
9.
Lack of awareness among beneficiaries about their rights
and also about the grievance redressal mechanism. People
do not know which authority they should approach to get
their problems solved.
42
10.
List of BPL beneficiaries was not available at shops visited by
the Committee.
11.
The sales Registers maintained by all the FPS dealers do not
contain signatures of beneficiaries.
12.
Sarpanches of Villages are not aware of the quantity of stock
received by FPS dealer.
It is pertinent to mention that
Sarpanch is the member of Vigilance Committee. Many
Sarpanches of tribal villages complained that they do not
have information about the quantity of stock received by the
FPS dealers.
13.
The FPS dealers have to submit Stock Patra to get Permit for
allocation of next month. However, the same Stock Patra is
not required to be signed by members of Vigilance
Committee. The members of the Vigilance committee should
certify the Stock Patra that the stock mentioned was properly
distributed to beneficiaries and was not diverted.
Thus,
proper monitoring of distribution of foodgrains by FPS
dealers be done.
14.
There is no check regarding the quantity received or lifted
by FPS dealer from GSCSC as no officer visit the FPS shop to
sign the stock register.
43
Chapter 3
APPOINTMENT OF FAIR PRICE SHOP DEALERS
3.1
Government of Gujarat vide their Order dated 31st May, 2004
regulated the licences to Fair Price Shops in the State. This Order
is called as Gujarat Essential Commodities (licencing to Fair Price
Shops) Order 2004. This order has been issued by the Government
of Gujarat in exercising powers conferred by Section 3 of the
Essential Commodities Act, 1955 and the Order of the Government
of India, Ministry of Consumer Affairs, Food & Public Distribution,
Department of Food & Public Distribution No. GSR / 630 (E) dated
31st August, 2001 which is popularly called Public Distribution
(Control) Order, 2001.
3.2
Procedure for allotment of Fair Price Shops: The procedure for allotment of Fair Price Shops in Gujarat has been
adopted as per the Government Resolution No.VBD/10/2002/487/C
dated 30.04.2002 and 31.05.2002 of the Department of Food, Civil
Supplies & Consumer Affairs, Government of Gujarat. As per the
above mentioned resolutions, the earlier resolutions for governing
the procedure for the allotment of FPSs have been repealed and
now the resolution dated 30.04.2002 and 31.05.2002 are relevant
and in force for allotment of FPSs.
3.3
(1)
Norms for opening the shops:One shop for population of every 5000 in urban areas of the
State.
(2)
One shop for population of every 2000 in rural of the State. The
village having less population is connected to the nearest shop
provided that by doing so the distance between such village and
shop generally should not be more than 3 km. If the distance of
44
a village having population less than 2000 exceeds 3 km., one
shop may be sanctioned for such village irrespective of a
population of the village.
(3)
There is also separate arrangement of the Gujarat State Civil
Supplies Corporation (GSCSC) for running mobile shops in
inaccessible, tribal and areas backward in other respects. There
are no such binding norms for mobile shops. Government of
Gujarat informed that in remote areas GSCSC operates four
mobile vans in 4 districts. These mobile shops sell PDS as well
non-PDS items to the people living in these areas at their door
step. Details are as follows:District
Taluka
Kachchh
Rapar
Patan
Santalpur
Rajkot
Maliya-Miyana
Surendranagar
Halvad
Patdi
Dhrangadhra
(4)
State Government has authorized the concerned officers of the
Department to give sanction for opening shops on temporary or
permanent basis relaxing the above mentioned norms to meet
the requirement in inaccessible and tribal areas as well as
scarcity, semi scarcity, lean agriculture areas or in order to meet
the
situation
in
other
extraordinary
circumstances.
The
Competent authority shall immediately send the report to the
State Government in such situation.
3.4
Opening of new Fair Price Shops:
45
3.4.1 Reasons for opening of new Fair Price Shops may be – dismissal of
the dealership, opening of new shop due to increase in the number
of cards and attachment of the cards on rationalization. Distance
condition, tribal and inaccessible areas. Vacancy is advertised
indicating the category to whom the FPS is to be allotted as per the
reservation roaster adopted for this purpose.
The reservation
adopted by the State Government is as follows:(i) The village in which there is population of ST at 50% or more, in
such villages the shop is to be allotted to the candidate of SC, ST
only. While in the other areas allotment is to be made as per
percentage as mentioned below:(a) 7% shops are to be allotted to the educated unemployed
candidate of SC.
(b) 27% to be allotted to the candidates of SEBC.
(c) Rest of the shops can be allotted to educated and unemployed
of other classes.
(d) 3% reservation for physically handicapped persons.
(e) The above reservation is to be considered Taluka-wise and the
Taluka Mamlatdar is required to maintain register for this
purpose and the Collector is to verify implementation of the
reservation.
(f) In case educated and unemployed persons are not found the
Sahakari Mandlis (Co-operative Societies) are considered for
allotment of shops. There is a condition that Sahakari Mandlis
should have registration before 3 years from the date of
advertisement and that should be graded as either ‘A” or “B” by
audit.
Only one shop can be allotted to such Mandli / Co-
operative Society.
46
(ii) There should a minimum 200 sq. ft. land in possession of
applicant of his own or rented and in the big city like Ahmedabad,
Vadodara., Rajkot, Bhavnagar, Jamnagar, Surat and Junagadh and
in Municipal Corporation areas, the space requirement is 100 sq. ft.
(iii) The applicant should be in position to invest at least Rs.10,000/.
(iv) Age of the applicant should be 18 years and not more than 35
years.
(v) Minimum educational qualification is 10th standard.
(vi) The applicant should be resident of the village / ward for the
last 10 years.
(vii) A format has been prescribed for applying for the allotment of
FPS.
(viii) Only one member of the family can be allotted the FPS.
(ix) The towns having population of 15,000 or more in the State are
considered as city areas.
(x) Educated unemployed means any person who has passed SSC
or equivalent exam and has not service or business and who has
not income and such candidate is less than 35 years.
3.5
Resolution dated 21.08.2006
Through another resolution dated the 21.08.2006 the Government
of Gujarat decided that the Bachelor educated unemployed will be
given priority in the educated unemployed category. By the same
47
resolution it has been stipulated that the candidates with the higher
qualification will get priority.
In case the applicants have same
qualification then the applicant having more percentage will be
given priority.
3.6
Processing of the applications
3.6.1 On receipt of the applications in pursuance of the advertisement the
Mamalatdar recommends the qualified candidates after consideration
by the Committee constituted for this purpose. The members of the
Taluka Civil Supplies Advisory Committee are as follows.
1.
Mamalatdar
2.
Taluka Panchayat President
3.
Local MLA
4.
Home Guard Officer
5.
Representative of FPS owners
3.6.2 The above mentioned Committee prepares the priority list and
recommends the same to the District Civil Supplies Advisory
Committee.
3.6.3 District Civil Supplies Advisory Committee further recommends the
priority list to the District Collector as per Government norms. The
District Advisory Committee consists of –
i. All MLAs of the District
ii. All MPs
iii. District Panchayat President
iv. Chairman of Social Justice Deptt.
v. Food & Supply Controller
vi. Registrar Consumer Forum
vii. Representative of Grahak Suraksha Mandal
48
viii. Representative of Yuva Mandal
3.6.4 As per the recommendation of District Advisory Committee and as
per the Government Rules, FPS dealership is granted by Collector.
3.6.5 Panel is prepared for three eligible persons for one FPS dealership.
In case applicant at No.1 is not found interested the next
recommended candidates are considered for allotment of FPS
dealership.
3.7
Appeal and revision
There is a provision of appeal and revision for the unsuccessful applicants.
3.8
Observations of the Committee
3.8.1 Grant of licence is not a largess which the State is bestowing on the
FPS dealer. It is a well known fact that an FPS, if run honestly, will
result in loss to the owner. Perhaps FPSs are opened in each
District every year as the policy of the State Government is that
there should be an FPS for a population of 2000 in the rural areas
and 5000 in the urban areas and the distance of one FPS from
residence of beneficiary should not be more than three kilometers.
There is no rationalization of ration cards and the number of ration
cards with an FPS may range from 150 to 2000. For an FPS owner
to sustain himself and his family, black-marketing or diversion of
PDS food grain is a rule rather an exception. In this unholy deal
there is collusion between the FPS owners and the official
concerned breeding corruption. Considering these factors, it is
meaningless to make categories for grant of licence to run FPS.
PDS food grain in the FPS is meant for the beneficiaries and not for
the owner of the FPS.
49
3.8.2 The Committee during the visit to the State perused some of the
files pertaining to the grant of licences in some districts.
It is
observed that there are number of applicants for getting the licence
of the FPS. On the one hand there is a complaint from the FPS
dealers that their income is very low and they cannot survive on the
basis of the income of FPS and pleaded that the Commission may
be increased for their survival. On the other hand there is a great
demand for FPS dealership. This paradoxical situation needs to be
analysed critically. It is no secret that FPS dealer cannot earnestly
earn enough to sustain himself and his family. He indulges in black
marketing. At the same time he gets a status, being the holder of
licence for FPS. All the FPS owners who met the Committee said
they were having side business.
One FPS owners who met the
Committee said they were having side business. One FPS owner
even contested for election of MLA.
These FPS owner are not
interested in running FPS regularly unless they have kirana /
grocery
3.8.3 The Committee observed that FPS as per the present system of
commission is not a viable proposition.
Study of the Committee
shows that merely increasing the commission will not result in
making the FPS a profitable or viable proposition. The Committee is
of the view that the concept of stand alone FPS should be changed.
It should be the condition of FPS licence that the dealer runs a
kirana / grocery shop.
He should be permitted to sell all items
except non-PDS rice and wheat. It is well documented fact that the
FPS owner is in business for the purpose of diversion or for political
influence or other influence that he can wield by being an FPS
retailer.
There is a massive corruption woven around it where the
participants are the shopkeepers, officials of the department /
Corporation, transporters and the politicians. Though there is
clamour for allotment of FPS, the FPS does not rehabilitate or
50
support sustenance to any category or gender, it rather breeds
corruption.
3.8.4 The Gujarat Government’s endeavour to convert the FPS into model
FPS is an earnest effort for making the FPS viable. By converting
the routine FPSs into a model FPS or village mall the income of the
dealers have increased and now they are in a position to earn more
and can support and sustain their family.
More efforts may be
made by the State Government to provide all possible assistance to
the FPS dealers in converting their traditional shops into the model
FPS. The Committee is also of the view that the reservation for
various categories provided in the State Government’s Order
appears rather unnecessary.
FPS licences should be allotted to
persons of the locality who are already running kirana / grocery
shops and who have the sufficient funds, sufficient space to run
the FPS and capable of converting the traditional FPS into village
mall or model FPS to make the FPS viable.
This will help in
checking the diversion and making the PDS really worthwhile for
the targeted population for which the scheme was introduced by
Government of India.
51
Chapter 4
VIABILITY AND MODEL FAIR PRICE SHOPS
4.1
Viability of FPS is linked with the rate of commission to be paid to
FPS dealers. The Committee discussed the issue of viability with
FPS owners and their associations, government officials and also
invited suggestions from the public.
4.2
Viability of Fair Price Shop is critical to sustenance of Public
Distribution System and to minimize leakages of PDS grains. The
number of ration cards attached to FPS in each category, offtake of
grains, margin on commodities, cost incurred on transport and
handling, rents etc. are the determinants of viability of Fair Price
Shops.
4.3
Programme
Evaluation
Organisation
(PEO)
under
Planning
Commission in its evaluation Report on TPDS defined Viability of
FPS to mean an annual return of 12% or more on the working
capital.6
4.4
Average gross income of an FPS is calculated as an average of the
total margins generated from the sale of sugar, kerosene, rice and
wheat (APL, BPL, AAY) and other receipts out to the sale of gunny
bag in which PDS grains are packed and sent in to the FPS.
4.5
The PEO report, 2005 brings out the importance of kerosene in the
income composition of the FPS. The Report states that the income
from kerosene almost equals the combined share of income
generated from sale of BPL rice and wheat and thus speaks of the
PEO, Performance Evaluation of Targeted Public Distribution System-2005, (at
pg vi and 50).
6
52
importance of keeping kerosene within the PDS retail trading to
improve their viability.
4.6
The
Gujarat
State
Civil
Supplies
Department provided
the
Committee with the following calculation with respect to viability of
FPS.
Cards – BPL (including Special BPL) – 400; AAY – 100
Commodity
BPL Wheat & Rice
Fortified Atta
AAY Rice
Sugar
Gunny
Sugar Gunny
Total
S. No.
1.
2.
3.
4.
5.
6.
Quantity
80 quintals
100 bags
16 quintals
12 quintals
96 bags
12 bags
Commission Income
Rs.35/Rs. 9.10/Rs.35/Rs.10/Rs.13 per bag
Rs.25 per bag
Particulars
Building Rent
Light Bills
Stationery Expenses
Helper
Telephone Bills
Transportation
Total
Urban
4.7
Rural
1000
200
200
1500
100
1500
4500
Net Income (Income – Expenditure)
2800
910
560
120
1248
300
5938
500
100
200
1000
100
1500
3400
Urban
1438
Rural
2538
However, it stated that the figures taken by the Department are not
correct. The following is a more likely position with the following
alterations
(i) Sugar is @ 2.5 kg per card
(ii) The actual number of bags are calculated on the basis that
every quintal will result into 2 empty gunny bags
Commodity
BPL Wheat & Rice
Quantity
80 quintals
Commission
Rs.35/53
Income
2800
Fortified Atta
AAY Rice
Sugar
Gunny
Sugar Gunny
Total
100 bags
16 quintals
12.50quintals
192 bags
13 bags
Rs. 9.10/Rs.35/Rs.10/Rs.13 per bag
Rs.25 per bag
Net Income (Income – Expenditure)
4.8
Urban
2768
910
560
125
2548
325
7268
Rural
3868
The FPS owners were also asked to submit a chart on their viability
and they submitted the following expenses for each FPS
irrespective of the number of cards attached to the FPS.
Expenses per month:
Particulars
Shop Rental
Stationery (Books, Bill Book etc.)
Electricity
Helper
Labour
Municipal Tax
Total
4.9
Amount (in Rs.)
3000
500
500
3000
250
400
7650
The dealers stated that they also had to pay bribe running into
lakhs for obtaining a FPS. They also put the following points before
the Committee –
-
The Commission should be increased from 4% to 10%
-
Sufficient quantity of food grain is not given to FPS. Further,
Ahmedabad should be treated as Mega City and extra grain may be
allotted to the FPS located in Ahmedabad
4.10
FPS dealers have to incur huge expenses in the city for running PDS
operations from the FPS shop. Thus, compared to the expenses the
income was too low, in fact some times they had to incur loss. The
FPS owners wanted the commission to be increased from 4% to
10%. The Department calculated the income on the basis of an
54
average of 400 BPL Cards and 100 AAY Cards for sale of Wheat,
Rice and Fortified Atta at Rs 6000/- per month. The expenses were
calculated to be at Rs. 4500/- for shops in urban areas and at Rs.
3400/-for shops in rural areas. It was seen that considering the
income and expenses, there is hardly any income for FPS owner to
earn his livelihood having a family of 5 members.
4.11
The following is the viability of few FPS visited by the Committee in
the State of Gujarat
1.
Visit to FPS dealer at Gandhigram, Junagarh
FPS Bileshwar Grahak Sarkari Bhandar. FPS dealer Rajabhai. He is
running the shop since 1992. Licence No.63/05.
No. of cards - 1712
AAY – 90; BPL – 356; APL 1 – 1256; APL 2 – 10
Commodity
Wheat
Fortified Atta
Rice
Sugar
Gunny
Total
Quantity
175.44 quintals
90 bags
35.76 quintals
8.92 quintals
441 bags
Expenditure
Rent
Electricity
Helper
Stationery & Miscellaneous Charges
Transportation
Total
Commission Income
Rs.35/6140.40
Rs. 9.10/819.00
Rs.35/1251.60
Rs.13.94/124.34
Rs.10 per bag
4410.00
12745.34
Amount
1500
300
2000
100
4410
8310
Net Income (Income – Expenditure)
4435.34
2. Visit to FPS dealer at Saliya, Morwa Taluka
The said FPS was being run by a Saliya Arthshan Seva Sarkari
Mandali, a Cooperative Society
55
No. of Cards - 552
AAY – 43; BPL – 46; APL – 463
Commodity
Wheat
Fortified Atta
Rice
Sugar
Gunny
Total
Quantity
52.74 quintals
43 bags
9.64 quintals
1.78 quintals
129 bags
Expenditure
Salary
Electricity
Stationery & Miscellaneous Charges
Transportation
Total
Commission Income
Rs.35/1845.90
Rs. 9.10/391.30
Rs.35/337.40
Rs.13.94/24.81
Rs.10 per bag
1290.00
3889.41
Amount
2000
750
100
850
3700
Net Income (Income – Expenditure)
4.12
189.41
Apart from this there was also some other income from kerosene
for which the person incharge of the FPS was not able to give any
details. He stated that the profit from the shop was around Rs.
3,000/- per month.
4.13 Model Fair Price Shops
4.13.1 Gujarat is the first State in India, which has presented a new
concept of Fair Price Shop viz., a model centre, which would be
beneficial to the shopkeepers running the FPS and also attract
more customers to these shops. At present, the shopkeepers of the
FPS get Rs. 1500/- to Rs. 3000/- per month towards commission or
even suffer loss depending upon the number of cards attached to
the FPS.
4.13.2 To improve the economic viability of the FPS, the Government of
Gujrat has permitted the FPSs to sell other items. They can have
56
distributorship or agency of various products, so that they can sell a
variety of goods and services, in addition to rationed (essential)
commodities. These are now called the model Fair Price Shops
(MFPs) and are run on the concept of village malls.
4.13.3 With a view to increasing their income, MFPs are allowed to sell
various commodities, like packaged foods, cosmetics, mobile
recharge coupons, non-subsidized LPG cylinders, fertilizers, certified
seeds, toiletries detergents, etc. Other products include PLI policy,
ST bus bookings, STD telephone, pharmaceuticals and bio-diesel.
4.13.4 To increase the clientele and attract more consumers, the MFPs
are going through a face-lift in looks as well as attitude which is
expected to be consumer-friendly. The MFPSs owners have been
given training at Ahmedabad Management Association. An MFPS
requires two or three windows, the articles arranged in an attractive
manner, facility of sitting for the consumers.
4.13.5 In order to see that, they may be able to effect the said changes,
financial linkages have been provided to FPSs. For upgradation, the
State Government ties up with the State Bank of India to advance
loans to FPS owners. The State Bank is holding “Loan Mela” in all
Districts to promote renovation of MFPSs.
4.13.6 National Institution of Designing (NID), Ahmedabad has developed
uniform design and colour code for the MFPs.
4.13.7 Formation of Vigilance Committee at Village level would take stock
of the MFPs activities and ensure that there is no diversion of the
quota, and at the same time demand, supply and nutrition issues
are converged at village level.
57
4.13.8 With the initiation of such Fair Price Model Centres, a variety of
articles, which are useful to the customers, will be made available
at these shops and the business of the shopkeeper also will
increase, and his profit will also rise. At the same time, the goods,
which were used to be diverted and disposed elsewhere from such
FPS, would also stop. The scheme has raised the monthly income of
the shopkeepers, which is estimated to be Rs. 2,000/- (Rupees Two
Thousand) to Rs. 10,000/- (Rupees Ten Thousand).
4.13.9 One more advantage of the said MFPS is that, because of their
creation in the villages, the people residing in the rural areas would
get such articles and services in their own villages and they would
not have to go to the cities for getting the same. As a result, time
and money of the people living in the rural areas would be saved.
Thus, this mall may also be styled as the ‘Rural Mall’.
4.13.10 The Committee also visited a few Model FPS in the State of
Gujarat and found the concept of Model FPS was very successful 1. Visit to Model FPS at Dariyapur, Ahmedabad
Name of dealer – Pravin Bhai Bhogilal Bhavsar
Shop No.10144
No. of Cards – 1924
APL 1- 1540; APL 2 – 28; BPL – 311; AAY – 45
Commodity
Wheat
Fortified Atta
Rice
Sugar
Gunny
Total
Quantity
58.94 quintals
45 bags
25.86 quintals
7.12 quintals
184 bags
Expenditure
Commission
Rs.35/Rs. 9.10/Rs.35/Rs.13.94/Rs.7 per bag
Amount
58
Income
2062.90
409.50
905.10
99.25
1288.00
4764.75
Rent
Electricity
Helper
Stationery & Miscellaneous Charges
Transportation
Total
0
250
1600
100
700
2650
Net Income (Income – Expenditure)
2114.75
The dealer stated that his profit from PDS items was Rs.1500/- to
Rs.2000/-. His total profit from the Model FPS i.e. by selling other
grocery items was Rs.4000/- to Rs.5000/-. The shop remains open
throughout the day.
2.
Model FPS at Bodidra, Godhra
Licence No. 08/04. He is running the shop since 1935.
Name of dealer – S. J. Shah
The shop was converted into Model FPS in 2006.
No. of cards – 839
AAY – 78; BPL – 255; APL – 506
Apart from this he has 115 cards of Gas connections.
He is running a huge Kirana shop and was is selling clothes,
jewellery and other assorted items.
Commodity
Wheat
Fortified Atta
Rice
Sugar
Gunny
Total
Quantity
86.30 quintals
78 bags
27.78 quintals
6.66 quintals
242 bags
Total Expenditure of Model FPS
Rent
Electricity
Helpers
Stationery & Miscellaneous Charges
Transportation
Commission Income
Rs.35/3020.50
Rs. 9.10/709.80
Rs.35/972.30
Rs.13.94/99.84
Rs.11 per bag
2662.00
7464.44
Amount
0
6000
7500
100
1130
59
Total
20730
Net Income (Income – Expenditure)
(-)13265.56
The above figure is negative as the expenses are for running the
entire Model FPS whereas the income is only from PDS items. The
dealer stated that the income from PDS items was approximately
Rs.4,000/-. He stated that his income from the shop is Rs.3 Lakhs
per year (Rs.25,000/- per month).
The shop is being run by 2 brothers and they also have a family
cloth business. Apart from this they also own a vast agricultural land
of which they had also donated 3 acres for a local school
3. Model FPS, Piplod
Name of the dealer – H.Y. Dalal
Shop No.220/179
He was running the shop since 1972 and was a resident of Godhra.
The FPS is an Agro Business Center and it also sells fertilisers. Apart
from this the FPS dealer has also applied for a licence to sell seeds
which is still pending.
No. of cards – 244
APL -182; BPL- 6; AAY- 56
Commodity
Wheat
Fortified Atta
Rice
Sugar
Gunny
Total
Quantity
19.04 quintals
56 bags
9.32 quintals
1.24 quintals
60 bags
Total Expenditure of Model FPS
Landline phone
Electricity
Helpers
Stationery & Miscellaneous Charges
Commission Income
Rs.35/666.40
Rs. 9.10/509.60
Rs.35/326.20
Rs.13.94/17.28
Rs.11 per bag
660.00
2179.48
Amount
270
450
1600
100
60
Transportation
Total
500
2920
Net Income (Income – Expenditure)
(-)740.52
The above figure is negative as the expenses are for running the
entire Model FPS whereas the income is only from PDS items. He
stated that his income from PDS is approximately Rs.3,500/-.
The FPS has 10 rooms most of which had fertiliser bags. The FPS
had about 900 bags of fertiliser in storage. The income from
fertiliser is Rs.7-Rs.9/- per bag and the FPS dealer sells about 600800 bags in a season. Thus the income of the dealer from fertiliser
ranges from Rs.4200/- to Rs.7200/-. He also stated that his
income would increase by Rs.2000/- to Rs.3000/- per annum after
he gets the licence to distribute seeds. Apart from the FPS he is
also earning income from rent.
4.13.11 As stated by the Committee in its earlier reports that stand alone
FPS is not profitable and even if the Commission is increased to
100% it will not result into sufficient income for the FPS dealer. It
is a matter of common knowledge that in order to survive, an FPS
owner diverts PDS food grains in the black market and shares the
ill-gotten money with the officials of the Department.
4.13.12 In Gujarat, the FPS are now being made as model shops
considering that stand alone FPS is not feasible. The Committee
visited a number of model FPS and found that from the PDS
operation, the FPS owner earns an income of Rs. 1500/- per
month, he earns a further income of Rs. 4000 to 5000/- per month
in a model FPS. As a matter of fact, on a visit to one such model
shop, which in fact can be termed as Village Mall, the FPS dealer
told the Committee that he is having an income of Rs. 1500/- per
61
month from PDS operation and from the Mall, the income is as
much as Rs. 4000 to 5000/- per month. The FPS dealers who met
the Committee also stated that they were being in such a business
to make an earning. The Committee is of the view that since any
amount of increase in commission would not make an FPS viable, it
is, therefore, necessary that FPS dealers should have grocery shops
along with PDS licence. The condition should be that in the
Grocery/Kirana shop, the sale should only be of non PDS
commodities.
This
condition
is
also
imposed
by
Gujarat
Government on Model FPS. The Committee feels that the condition
should be put in the licence that FPS owner must have a running
Kirana/Grocery shop, in case of default or non compliance with the
condition the FPS licence should be revoked.
4.13.13 Now, the State Government policy is that FPS is to be opened in a
place where there is population of 2000 persons and that the
beneficiary should not have to travel more than 3 Kms to FPS for
his entitlement. This has led to a number of FPS being opened all
over without any emphasis on the concept of income from such
FPS. Also, the shops are being allotted to various categories of
persons like schedule caste, schedule tribe Women Self help Group,
unemployed graduate etc. but no thought is being given whether a
person to whom a FPS licence is granted is able to earn sufficient
income for his maintenance. The Committee has observed that it is
only after indulging in black marketing that FPS owner can earn
more income. In a way, the State Government is the party to this
diversion of FPS food grains in the black market, which is in
collusion with FPS owner and corrupt Department officials.
The
FPS licence is to be granted to a person having a Kirana/Grocery
shop and belonging to the particular locality or has sufficient
means to run a Kirana/Grocery shop along with FPS food grains.
62
The Committee is of the view, therefore, the stand alone FPS is not
feasible.
4.13.14 It is certainly heartening to know that the State of Gujarat has
started the concept of Model Fair Price Shops in the State. This
innovative concept introduced by the State is to help FPS dealers
establish higher level of accountability, and to attract customers in
large numbers. With an objective to make FPS more viable, the
FPS dealer is encouraged to convert his routine FPS into a model
FPS. FPSs are supported by the Gujarat State Civil Supplies
Corporation (GSCSC) as a facilitator to avail loan facilities from the
Nationalised Banks. If the FPS operator gets the loan of Rs. 1 lakh,
an amount of Rs. 15,000/- is paid by the Government as margin
money (subsidy). The State of Guajrat has also passed a
Government Resolution in this regard and plans to convert all FPSs
into model FPSs by 31.03.2010 with an objective to make FPS
more viable. At present, there are 11,004 model FPS out of the
total 16,402 FPSs.
4.14 Conclusions
1.
Increase in commission will put an unnecessary burden on the State
exchequer or on the consumer if it is passed on to the consumers. It
should rather be the condition of the licence that FPS owner must
run grocery / kirana shop. His inaction to do so should entail
cancellation of licence to run FPS. The authorization of FPS should
be given to grocery / kirana shop in that area itself and it should
also be seen that owner himself resides in that area. A stand alone
FPS should not be allowed as it is an inherently unworkable model
and leads to malpractices. A system needs to be developed where
general stores are given licences to sell PDS grains. There should be
a restriction on sale of non PDS wheat and rice at such shops. For
this FPS can be made the supply units for goods produced and
63
marketed by public and cooperative agencies like Khaadi and Village
Industries, cooperative marketing federation and can also be
allowed to sell products by women self help groups like pickles, jams
dry masala etc.
2.
There has been a general suggestion that the commission of the fair
price shops should be increased to approx 10%. However, the
Committee reiterates its stand which it stated in its Delhi report that
in order to improve the viability of fair price shop, the consumers
should not be burdened and also no additional burden should be
there on the government.
3.
It was observed by the Committee that some FPS dealers have very
few beneficiaries attached to their shops while other have a large
number of beneficiaries. Number of ration cards attached to a shop
has a direct bearing on the income of FPS. There have been a
number of demands that each FPS should have sufficient number of
ration cards attached to it. Thus, there should be rationalization of
cards for each FPS. There is a need for rationalization of the number
of beneficiaries attached to the FPS to make the shops financially
viable.
4.
Efficient retailing would require pre-conditions such as experience
and ability to undertake certain investment and sustain an adequate
return. FPS licences should be granted to people/ groups who have
adequate liquidity of fund. Integrity and rapport of person in the
local area are other aspects to be considered. Pattern of ownership
of FPS can have important bearing on their viability. Self help groups
and Cooperatives can be given priority for granting licences to
rationalize the cost structure of FPS.
64
5.
The State of Gujarat has also embarked on a project to convert all
the Fair Price Shops into Model Fair Price Shops for which a separate
chapter has been created.
65
Chapter 5
IDENTIFICATION OF BENEFICIARIES AND ISSUE OF
RATION CARDS
5.1 Introduction
According to the provisional results of Population Census 2001, the
population of Gujarat as on 1st March 2001, stood at 5.06 crore,
including the estimated population of earthquake affected areas. The
density of Gujarat is 258 persons per sq. km in 2001. About 37.67
per cent population of Gujarat resides in urban areas (Excluding
earthquake affected areas). According to the provisional results of
population census 2001, the total number of households were 96.44
lakh.7
Total no. of Ration Cards in the State8
AAY - 8.1 LAKHS
BPL - 25.7 LAKHS
APL- 89.4 LAKHS
5.2
Identification of BPL
5.2.1 Presently, the BPL population figures in the State are based on the
survey done in 1997-98 (which is based on BPL census for 8th Five
year Plan for year 1992-93) The BPL census for the 8th Plan used
income as the criterion, and those families whose annual income
was below Rs 11000 were considered as BPL.
5.2.2 The BPL census for Ninth Five Year Plan (1997-2002) was
conducted in two stages. First on the basis of several ‘exclusion
criteria’ and secondly on the ‘total consumption’. The BPL census
http://www.gujaratindia.com ( official website of Government of Gujrat)
8 Presentation by the Principal Secretary of Food and Civil Supplies Dept. before
the Committee on 24th August 2009 at pg 6
7
66
adopted in the Ninth Plan was criticized
particularly for the
exclusion criteria, mainly the fourth point according to which if the
family owns consumer durables like TV, ceiling fan etc, family is
considered to be ‘Not Poor’. The State Government did not follow
this criteria because as per the 9th plan BPL census number of BPL
families estimated in the State were 23.29 lakh families i.e. lesser
than the number of BPL families as per the 8th Plan census which
were already identified in the State. It is pertinent to mention here
that the above said exclusion norm was not present in the 8 th Plan
census criteria which is being followed by the State. The Committee
received complaints that the Zonal Officers / Inspectors, while
conducting the ground verification, ask for certain items such as cell
phones, television, electricity etc. Upon enquiring why such
objections are put by the officials even though the same criteria is
not provided in the 8th
Plan BPL census followed by State, the
Committee was told that this was simply done by the Inspectors
themselves since they did not want to issue the BPL cards.
5.2.3 As per the 10th Five Year Plan BPL census (2002-2007), families
were surveyed based on scores obtained in assessment of relative
deprivations to determine
those who were actually BPL. 13
scorable indicators with scores ranging from 0-4 are assigned. ‘0’
being most deprived and ‘4’ being least deprived. Food security was
one of the criteria out of 13 indicators, thus food security accounts
for maximum 4 out of 52 (13X4) marks i.e. less then 10% . As the
weight to the factors for food security was very less and State was
of the view that there are more number of BPL families than that
determined as per 10th Plan BPL census the State of Gujarat did
not follow these criteria and continued with the 8th plan BPL census.
As per the 10th plan BPL census there are 14.51 lakh families in the
0-16 marks which is qualifying marks for getting BPL status, 14.49
lakh families scored 17-20 marks.
67
The families who scored
between 17-20 were not much different from those who scored 116. Again new census was not followed and the State continued
with 8th plan BPL census.
It is pertinent to mention that the
Guidelines of GOI issued in year 1997 were though important as it
directed the State Government to identify BPL families for TPDS
scheme separately were ignored by most of the States and later
totally forgotten.
5.2.4 The BPL cards as per the State government’s policy are 25.68 lakhs.
As per 9th Plan BPL 23.29 lakh families were BPL in the State. As
per the 10th plan BPL census there are 14.51 lakh BPL in the State.
9
5.2.5 The State Government has adopted the procedure to issue BPL
Ration
card as per their Letter No. KTK/102004/M-4K dated
17.04.2006. According to the procedure for urban area a family having
income less than Rs. 500 per person and Rs. 2500 per month per family
is entitled
for BPL Ration Card. For rural Areas a family having income
of Rs. 323
per month per person and Rs 1615 per month per family is
entitled to
BPL ration card.
In addition to the above income limits, applicant should meet any of
the following criteria in rural areas.
1.
Applicant should be agricultural or migrant labourer or owner
of land less than one acre.
2.
Allottee of house under Indira Aawas Yojna or similar
housing scheme.
Presentation by the Principal Secretary of Food and Civil Supplies Dept. before
the Committee on 24th August 2009 at pg 7
9
68
The proposal to issue new BPL ration card should be submitted in
Gram Sabha, after approval of Gram Sabha the appropriate
authority has to issue the card. After verification of the application
and source of income of the applicant by the Field supply officer,
eligible applicants are given new BPL card. However, the survey as
per the State Govt. instructions dated 17.4.2006 regarding BPL
identification is going on. BPL cards have not been issued since
2001. However, if a BPL applicant applies for a ration card then his
application is kept in record for the purpose of referring to it for
issuing BPL card as per the new BPL list to be formulated as per
the instructions dated 17.4.2006 of Government of Gujrat..
5.3
Identification of AAY beneficiaries
5.3.1 Identification of AAY beneficiaries is based on following criteria
1. Landless Agricultural labours, Marginal Farmers, Rural Artisans/
Craftsman such as potters, tanners, weavers, blacksmiths informal
sector like porters, coolies, rickshaw pullers, land cart pullers, fruit
and flower sellers, snake charmers, rag pickers, cobblers, destitute
and other similar categories in both rural and urban areas.
2. Households headed by widows or terminally ill or HIV+ persons/
disabled persons/ Persons aged 60 years or more with no assured
means of subsistence or societal support.
3. widows or terminally ill persons or disabled persons or persons
aged 60 years or more or single women or single men with no
family or societal support or assured means of subsistence.
4. All primitive tribal households.
5.3.2 On perusing the records at Jamnagar it was found that in the past
4- 5 months 25 AAY cards had been issued to HIV+ persons.
Verification of such cases was done twice before issuance of ration
cards.
69
5.3.3 For Antyodaya Scheme number of cards to be issued is decided by
Central Govt. and accordingly the State govt. issues the card.
Committee found that many families who deserve to get AAY
scheme benefits are left out. For instance in village Aslali, Taluk
Draskoi, the Committee met Kamlaben Jeshaji Thakur, (APL-1 Card
no. 0502285) who is the only member in family and is very old lady
of more than 70 years age and was not in condition to earn her
livelihood. As per the AAY norms she should be given AAY card
however, she had APL-1 card.
5.4
There were complaints about errors in identification of BPL/ AAY
beneficiaries. The Committee during interaction with beneficiaries
and NGO’s in public hearings observed that following communities
are demanding BPL card.
a) Nomadic and De-notified communities
b)
Widows of persons died due to Silicosis.
c) Salt workers
d) Small fishermen
e) Riot victims
f)
Widows
g) Orphans
5.5
The residents of unauthorized colonies do not get ration cards
beneficiaries are required to show residence proof. The demand for
ration card from the people residing in such unauthorized colonies
is also because once they get ration card the same will be used for
claiming various rights of BPL beneficiaries. The PDS control order
also prohibits use of ration card as identity proof or for any other
purpose. It was was
suggested by the people in various Public
hearings that Food security of a person should be de-linked from all
70
other facilities provided by Government under the poverty
elimination schemes.
5.6
Roaming Ration Cards
An Initiative was taken by the State Government to provide
Roaming Ration cards to the migrating families in the State of
Gujrat by providing temporary extension of the validity of the ration
card to any Fair Price Shop in the destination block of choice. The
migrated family in turn gets the ration items at his temporary
destination for which the FPS dealer of that area is allotted extra
PDS items for distribution for such migrant families. As per the 2002
census, there were 21 lakh migrant labourers in the State, but they
are not listed in any category. Roaming Ration cards is only
applicable for intra-State migration. The population migrating from
other States has to follow the proper procedure to get the ration
card made in the State after submitting their surrender certificate.
5.7
It is to be noted that Expert group report on BPL identification
methodology for the 11th Five Year Plan provides following
criteria:10
1. Automatic Exclusion : Exclusion Criteria would automatically
exclude those households that have at least one member working
in the formal economy either in Public Sector or Private sector. In
addition to this 5 more categories like income tax payee, families
having four wheeler etc are excluded.
2. Automatic inclusion of primitive tribe, Maha Dalit Groups, Single
women households, household headed by a minor, homeless,
bonded labours, Destitute.
3. Survey of the left out households.
10
http://www.sccommissioners.org/documents/download/140
71
5.8
Ghost and Bogus Cards
5.8.1 Ghost and Bogus ration card is a major problem in the State. This is
clear from the fact that 7.01 lakhs ghost cards (about 5.62%) were
cancelled in the State in the period 1.4.08 to 15.8.09. In District
Vadodara 42,972 bogus Ration cards were cancelled during the
period of January 2008 to December 2008. Again in January 2009
1,212 bogus ration cards were cancelled in Vadodara. 202 Bogus
ration cards were again cancelled in Vadodara in June’ 2009.
Committee was informed that such bogus cards were issued with
the connivance of the officers of the department. It is through the
bogus cards that PDS food grain finds its way to open market thus
depriving the needy of his right to PDS food grain. Bogus cards
when found are just cancelled and no further action is taken either
against FPS owner or the officials who had issued the bogus cards.
When the Committee put it to the officer as to why action was
taken only against the FPS owner if bogus cards were found while
the concerned officers who had issued the ration card is not
proceeded against the answer was that if action is taken against
the officer either by way of suspension or prosecution, the whole
system will collapse.
5.8.2 This appeared rather odd to the Committee that a corrupt system is
allowed to be continued frustrating the very purpose of PDS. The
Committee suggests that a general amnesty should be announced
for surrendering of bogus cards for a month or so. Thereafter door
to door survey should be conducted and if any bogus card is found
strict action should be taken not only against the FPS owner but
also against the official concerned.
5.9
Issuance of Ration Cards
The State is currently using Computer software for issuance of
ration cards. In case of issuance of ration card, the Zonal Officer /
72
Mamlatdar peruses the application and enters the information on
the database. In the process, the surrendered ration card number
of the beneficiary is also entered on the system. However, if the
previous/ surrendered ration card has not been deleted form the
database, then this fact will be reflected on the software and the
officer issuing the card will get to know that the ration card of the
beneficiary has not been formally surrendered. In this case, the
beneficiary will have to ensure that his old ration card is deleted
from the database. APL-1 card is issued to persons having annual
income less than Rs. 1 lakh. Applicant has to show his residential
proof, Certificate of cancellation of name from previous ration card
or Affidavit and has to pay Rs. 10 as fees. For issuance of BPL card
applicant has to show his income certificate.
5.10
1.
Procedure for issuing ration card
The applicant submits the hand filled Application Form along with
documents of deletion of old cards, identity proof and proof of
current residence.
2.
The applicant is given a receipt in lieu of his application. This
receipt is taken back once the ration card is issued.
3.
The concerned official verifies whether the previous card has been
surrendered and deleted from the list of the previous district/ area
from where the beneficiary is coming. This is done by using the
software which has the database of all new and surrendered ration
cards of the State. In case the deletion of the previous ration card
of the beneficiary is not reflected on the database then the
beneficiary is asked to take appropriate steps to ensure the same.
The officials also help the beneficiary in the process.
4.
Thereafter, the Supply Inspector conducts a physical verification of
the details of the application.
73
5.
After verification, the ration card is prepared at the Zonal Office and
sent to the office of the Mamlatdar on the same day for
authorization. This is in accordance with a Government Resolution.
6.
The card is sent back to the Zonal Office the next day.
7.
The applicant can then collect the card from the Zonal Office during
the office working hours. The entire process is to take not more
than 1 week.
5.11 Suggestions
1. There should be an amnesty period of four weeks where persons
holding bogus cards could surrender them without liability.
However, on the expiry of this period the above mentioned
intensive door to door verification should be conducted and during
that verification if any bogus card is detected both the holder as
well as the officers who had recommended the bogus card would
be prosecuted under Section 7 and other Sections of the Essential
Commodities Act, 1955 without exception. The Officers can be
proceeded against departmentally and severely punished. Widest
possible publicity must be given to the amnesty scheme.
2. Strict disciplinary and penal action is taken against the officers
involved in issuing bogus cards
74
Chapter 6
FORTIFICATION OF WHEAT FLOUR / ‘ATTA’
6.1
With reference to the report of the Committee pertaining to Delhi it
appears Dr. N.C. Saxena of his own wrote to Dr.
Veena
Shatruguna, Deputy Director, National Institute of Nutrition,
Hyderabad. The subject of the reply dated 1.10.2007by Dr. Veena
Shatruguna to Dr. N.C. Saxena read as under:-
“Your letter seeking my opinion on the desirability of
introducing fortified Atta instead of whole wheat through
PDS (Based on the recommendations of the CVC. On the
PDS, headed by Justice(Retd.) D.P. Wadhwa).”
In her letter dated 1.10.2007 to Dr. NC Saxena, she stated that “
there are serious problems in using wheat flour instead of whole
wheat in the PDS.” Dr. Veena Shatruguna
thereafter in her letter
described life of wheat flour from one to two months and
disadvantages of fortification of the wheat flour. Dr. S.K. Nanda,
Principal Secretary, Food & Civil Supplies & Consumer Affairs
Department, Gandhinagar Gujarat sought opinion of Dr. B.
Sesikeran, Director, National Institute of Nutrition, Hyderabad. Dr.
Nanda referred to a Writ Petition pending in the Gujarat High Court
wherein the Petitioner had submitted an affidavit to prove that
fortification of wheat flour was not in the interest of the society and
endorsed letter dated 01.10.07 written by Dr. Veena Shatruguna to
Dr. Saxena. Dr. Nanda further wrote that
in fortifying edible oil
Gujarat had succeeded
with Vitamin A & D and wheat flour (Atta)
with iron and Folic Acid. He wrote that the Government of Gujarat
was fighting with malnutrition problem in the State through Food
Fortification for the last three years. Dr. Nanda therefore sought
75
opinion of the Director, National Institute of Nutrition , Hyderabad
and also enclosed letter of Dr. Veena Shatruguna to Dr. Saxena.
Dr. B. Sesikeran, Director sent his opinion with his letter dated
03.10.2008 to Dr. Nanda.
Shatruguna
Nutrition.
The opinion given by Dr. Veena
did not find favour with the National Institute of
The opinion rendered by Dr. B. Sesikeran appreciates
the stand taken by Gujarat Government. It states that the notes
made by Dr. Veena Shatruguna were
in her faculty as an advisor
to the Committee and had to be considered in that context only and
not in the capacity of her being a Scientist at the National Institute
of Nutrition.
The
opinion of Dr. B Sesikeran, Director, National
Institute of Nutrition, thus does not approve the comments made
by Dr. Veena Shatruguna in her letter dated 01.10.07 to Dr. N.C.
Saxena. The opinion ends up with the following appreciative
remarks:-
“It is encouraging to add that wheat flour can be used to
fortify several other nutrients other than iron and foliate like
thiamine, riboflavin, niacin and Vitamin A. Since the basic
principle of fortification
programmes is to address
deficiencies of public health importance the measure taken
by the Government to address the major nutritional
deficiencies in India (iron and folate) should be appreciated
and the choice of vehicle is also ideal for Indian situations
particularly to Gujarat where wheat flour is the staple.”
Letter of Dr. Veena Shatruguna, Dr. S.K. nanda and of Dr. B.
Sesikeran with the opinion are annexed to this Report.
6.2
Gujarat Government is supplying
“fortified atta” (wheat flour) to
the beneficiaries of Antyodaya Anna Yojana (AAY) instead of wheat.
It has now proposed to supply “fortified atta” to beneficiaries of
76
Below Poverty Line (BPL) as well instead of wheat. To
fortify the
atta Folic Acid and iron are added and there is a proposal now to
add soya as well. There is considerable opposition to supply of atta
instead of wheat and this opposition is mostly from the FPS owners
and some NGOs. The Committee has examined this aspect and is of
the opinion that benefits of supply of quality fortified atta instead of
wheat out-weighs any criticism that shelf-life of atta is only 45
days.
6.3
During the meetings with FPS owners and NGOs the Committee did
not find any one raising objections to the fortification of PDS flour
with Folic Acid and iron. The objection of the FPS to wheat flour
instead of wheat to AAY category is understandable in as much as it
checks the diversion of PDS food grains
by them.
NGOs who
oppose fortification of wheat flour are perhaps are not well
informed and are guided by the opinion of Dr. Veena Shatruguna
which opinion did not find acceptance by the National Institute of
Nutrition.
In the various meetings the only objection to issue
”fortified wheat flour” instead of wheat to AAY category persons (to
whom fortified wheat flour is presently issued) is that quality of
wheat flour is poor
and the quality of wheat flour
is likely to
deteriorate, its shelf life being 45 days.
6.4
Since shelf life of wheat flour (Atta) is only 45 days it has to be
ensured that the product is distributed and consumed within the
stipulated period of shelf life so as to avoid product deterioration.
6.5
Some of the women in Public meetings also complained that
because it is fortified the chapati made from such atta were not
good, had black colour and chapatti would also break by just
folding. To address all these problems the Committee visited flour
mills. In one flour mill PDS wheat was being ground into fortified
77
wheat flour and packed into HDPE bags weighing16.700 Kgs. These
bags were being stitched. The bag contained the date of grinding
and other particulars. The Committee took sample of the wheat
flour and members of the Committee and others in the Circuit
House ate chapatti made out of that wheat flour. No difference
could be pointed out in the chapati made of fortified wheat flour
brought from the flour mill and those made from the flour obtained
from wheat. Thinking that there may be some mistake or error as
that sample was lifted from the flour mill before its distribution to
AAY beneficiaries, a team of the Committee visited slum area and
obtained fortified wheat flour from the kitchen of an AAY
beneficiary. Chapaties were made from that fortified wheat flour.
The chapaties were of good quality and there was no difference
found with the chapatti made from wheat flour. The quality of the
fortified wheat flour obtained from these two sources, one from the
Mill and other from the House of the AAY beneficiary was good.
But then the Committee also observed that:i)
In the flour mill visited by the Committee non-PDS flour was also
lying. The grinding of this wheat flour had been done earlier. The
Committee was told that the grinding of PDS wheat was done
thereafter and some grinding of non-PDS wheat will also be done.
The Management of the mill had advance notice of the visit by the
Committee.
ii)
In another mill it was found that the PP/HDPE empty bags already
bore date 02.09.09 as the date of grinding when the Committee
visited the mill only on 29.08.09. In yet another mill visited by the
Committee there were about 15 bags of fortified wheat flour (Atta)
which had been ground just before the visit of the Committee as
Management was informed of the visit. It was stated that grinding
of non-PDS wheat was being done but having come to know of the
78
visit of the Committee that grinding was stopped and grinding of
PDS fortified wheat was being done.
6.6
Some women in the public meetings no doubt desired that they be
issued wheat instead of atta notwithstanding the time and labour
they would be required to put in e.g. (i) going to FPS for getting
wheat; (ii) cleaning (iii) going to atta chakki for grinding and (iv)
paying grinding charges.
.
6.7
Members of the Atta Chakki (Nukkad Chakki) owners also met the
Committee
and
gave
their
views.
A
representation
was
subsequently received from Gujarat Ghanti Malik Mandal. It was
represented that the State Government had issued a circular dated
26.7.2007
requiring the flour mills and Atta Chakki owners to
fortify the
wheat flour with iron and folic acid. It was submitted
that Atta Chakki owners do not sell flour but only do grinding of the
wheat for their customers and charge for labour. It was submitted
that procedure for fortifying was rather cumbersome and that Atta
Chakki owners could not add anything extra to the wheat brought
for grinding without the consent of the customers. The aforesaid
circular also requires collecting the charges for fortification from the
individual customers. It was however, accepted that cost of
fortification was rather minimal (Rupees 4/- for every M.T. of
wheat). The representation further said that requiring fortification
of the wheat flour as per the circular would be against the
provisions of the various Acts.
During the course
of these
submissions it was brought to the notice of the Committee that a
Writ Petition had earlier been filed
by Ahmedabad Ghanti Malik
Mandal questioning the validity of the circular dated 26.7.2007.
This Writ Petition (Special Civil Application No.2621/2007) was
dismissed by the Gujarat High Court by order dated 18.10.2007.
The Hon’ble Court considered all the submissions which were
79
similar to the submissions now made before this Committee, and
they did not find any favour with the Court which rather
commended the fortification of wheat flour.
6.8
It was also mentioned before the Committee that it was difficult to
accept the stand of the Gujarat Government that each and every
individual has deficiency of folic acid and iron in their body. Until
and unless medical experts opine that there is a deficiency of any
kind of minerals and vitamins in the human body, it is not advisable
to administer any kind of drugs to remove the deficiency. The
representatives of these atta chakki
owners and others were
however, unable to tell if any harm has been caused to any
individual by consuming the fortified atta.
6.9
State Government embarked upon the scheme of supplying fortified
atta (wheat flour) not only to AAY beneficiaries but all over Gujarat
as surveys by Govt. of India organizations showed high levels of
nutritional deficiency in Gujarat in some significant categories of
population – children, adolescent girls, expectant and nursing
mothers.
State Govt. was of the view that though there were
district-wise variations in the State but as a whole it showed
general need to tackle the problem of iron and folic acid and
protein deficiency. Stand of the State Government is that it had
considered all the pros and cons and that stand has been upheld
by the Hon’ble High Court.
6.10
Circular dated 26.7.2007 was issued to maintain the level of iron in
women, children and men and therefore wheat flour fortified with
iron and folic acid was required to be distributed to assure the
availability of micro nutrients to the population of the State.
Considering the benefits of the scheme and taking into account the
instructions given by the Government of India as per its letter dated
80
17.1.2002 the State Government issued yet another circular dated
24.3.2008. This circular specified the issue of PDS food grain to
AAY beneficiaries i.e. issue of 16.7 Kg. of fortified whole wheat flour
instead of 19 Kg. of wheat every month. The circular gave the
details as to how the calculation was made for the purpose. Circular
also specified various other terms and conditions of the scheme for
fortification of the wheat flour and also with respect to delivery of
wheat from FCI godowns directly to the flour mills to convert the
wheat into fortified whole wheat flour.
6.11
There is yet another Writ Petition pending in the Gujarat High Court
(Special Leave Application No.3055/2008) titled Suo Motu Petition
by Petitioners v/s State of Gujarat and Others. In this there is an
affidavit dated July 2008 by Ms. Sejal Dand of ANANDI, an NGO,
wherein various submissions are made and attention of the Hon’ble
Court is drawn to orders of the Hon’ble Supreme Court in PUCL Vs
UOI and Ors (WP (Civil) 196/2001). The affidavit mentions that
wheat provided to the beneficiaries was red wheat which was now
converted into fortified flour. The flour provided was beyond
consumer’s inspection as insects cannot be noticed in the flour as
they are crushed while the red wheat was ground in the flour mill.
It is stated that this was not
the case with
earlier poor quality
wheat, and by this move of converting wheat to flour, beneficiaries
are bound to eat the poor quality wheat in the form of flour. It
was submitted that issue of flour be stopped and quality of wheat
be improved. The Committee, however does not
find any support
for these statements in as much as red wheat is issued by FCI and
it is only the grinding which is done as per guidelines under the
instructions of the State Government, by the flour mills appointed
for the purpose. It was also submitted before us by the officers of
FCI that issue of red wheat
as such has been stopped for last
about 2-3 months. Strict vigilance has been ordered by the State
81
Government while wheat is ground into flour.
However, this
Committee has made some comments on the working of mills for
the purpose of grinding wheat and is making certain suggestions.
6.12
In the Public hearing, one of the complaints were that atta supplied
through the PDS was coarse and was not fine. It was stated that
there was too much bran in the atta. The Committee was also
informed that some families in Gujarat do prepare chapati in the
evening made of coarse atta which is called Bhakhri and that in the
morning the chapati is made with fine atta.
6.13
The Committee met Ms. Sejal Dand, Ms. Neeta and Ms. Seema of
ANANDI, an NGO during the
visit to various places in Gujarat
particularly Ahmedabad, Godhra AND Rajkot.
At Godhra
the
Committee met Ms. Seema and another person of the NGO. They
were accompanied by some women who had brought atta in
packets to show the poor quality which was insect infected. It was
not
known if these women belong to AAY category or from which
FPS they had obtained the atta and when. But it would appear that
neither Ms. Sejal, nor Ms. Neeta nor Ms. Seema themselves had
any experience of cooking with the fortified atta supplied to AAY
category from any particular FPS. As noted above, Committee has
itself the experience of getting small quantity of fortified atta from
a house-hold of AAY family and getting chapaties made from
that. When these chapatis were shown, neither Ms. Seema nor any
other person could point out any fault or difference in the
chapaties.
The argument all through of the NGO before the
Committee has been against the quality and shelf life of only 45
days of the wheat flour (atta) and not the fortification.
6.14
During its visit to one of the flour mills, the Committee found rotten
wheat with live insects. One of the employees whispered that the
82
wheat was for Mid Day Meals but then another person corrected
him and stated that these bags were meant to be destroyed. The
Committee also found rotten wheat and wheat of poor quality
stacked in the Mill right next to PDS wheat. This can not be
permitted under any circumstances. The Committee was informed
that the State Government was proposing to supply fortified atta to
BPL families also instead of wheat grain. This would result into
tremendous amount of PDS wheat being ground by the flour mills
and thus, greater care needs to be taken in this regard. The
Committee was also informed that the State Government had
decided to supply atta in a bag of 18.5 kg. and not 16.7 kg. as
presently being distributed to AAY beneficiaries. Out of the
entitlement 19 kg of wheat, ½ kg is considered as wastage. Hence
forth the entire cost of cleaning, grinding & fortification shall be
borne by the State Government.
6.15
In a W.P. (Civil) 274 of 2005 entitled U.P. Roller Flour Mills
Association & Ors Vs Govt. of India & Ors, Hon’ble Supreme Court
noticed that Govt. of Assam found that the beneficiaries were not
interested in taking the whole grain and instead wanted atta and
further that this aspect was also examined by the Central
Government and it was noted that the workers in the Tea gardens
had shown reluctance to take whole grain and instead preferred
atta. In the Writ Petition the petitioners had highlighted that there
had been alarming increase in diversion of food stock meant for
supply under PDS.
The Court examined the suggestion that
distribution can be made through Gram Panchayats which in turn
get wheat converted into atta for supply to the beneficiaries. The
Court also took note of the submission that there could be
possibility of manipulation and lack of accountability.
The Court
then directed that considering the intention behind the programme
following modalities be adopted:
83
(i) The concerned Associations/Gram Panchayats/Local bodies shall
assess the need of wheat for the intended beneficiaries. The
need shall be indicated to the State Government.
(ii) They shall indicate the quantum of wheat which is to be
converted into Atta to be given to the beneficiaries on the basis
of their option. In other words, those beneficiaries who want to
take wheat shall indicate to them and those who want to take
Atta shall similarly indicate their option. On the basis of such
intimation as noted above, Associations/Gram Panchayats /Local
bodies shall convey their requirement to the State Government.
(iii) The quantity indicated for conversion into Atta shall be given to
the Mills, who after converting wheat into Atta, shall supply it to
the FPS so that the intended beneficiaries can get them from
the FPS at rates fixed by the concerned governments.
(iv) The State Governments shall ensure that the actual requirement
is being projected by the Associations/Gram Panchayats/Local
bodies and similarly whether after milling the supply is made to
the FPS to be supplied finally to the consumer.
(v) The State Governments shall quarterly supply the necessary
data for the information of the Central Government who shall
also ensure that all possible steps are being taken by the State
Governments to fulfill the intended objectives.
The Committee would suggest the following steps: (1) There should be a dedicated flour mill for grinding PDS wheat. In
case that is not immediately possible, it should be ensured that the
84
day on which the PDS wheat is ground no other wheat will be
ground in that flour mill.
(2) Quality of the flour manufactured has to be strictly monitored.
Grinding should be perfect and flour should be of fine consistency;
(3) There should be strict vigilance to ensure that no other wheat is
mixed up with PDS wheat;
(4) Grinding of PDS wheat should be in a flour mill where there is no
human intervention except at the time of pouring the wheat grain
in the machine and at the time of sealing the atta in right quantity
in the bags as it comes out. The process may include fortification of
wheat with proper folic acid, iron and other nutrients.
(5) Atta is transported to the GSCSC godown from the mill at the cost
of the State Government and from the godown the packed atta
should be supplied to the FPS by the GSCSC at its own expense.
(6) There should be strict adherence to the time schedule to ensure
that the atta is consumed within the prescribed period and its
quality is maintained. It is necessary that the atta reaches the FPS
within 5 days of its grinding. A period of 30 days must be given to
the beneficiary for consumption of atta from the date he lifts the
atta from the FPS as he is given ration for one month. Thus, atta
must be distributed by the FPS to all the beneficiaries within 15
days of grinding. In case, some bags are left undelivered in the
FPS after 30 days of grinding, the dealer should inform the
Mamlatdar and steps should be taken by the GSCSC to remove the
undelivered bags from the FPS. Those beneficiaries who do not lift
their entitlement of atta from the FPS, should be allowed to lift the
same in the subsequent month.
85
(7) The atta bags which are removed from the FPS should never again
be delivered to any FPS and if the delay is on the part of the
GSCSC, then it is the GSCSC which should suffer the loss of such
quantity of atta and fix responsibility.
(8) The date of grinding of the wheat and the date on the HDPE bag
should be same and the bags should also contain all other relevant
particulars like the expiry date, batch no., name of the mill, etc.
(9) The provisions of Prevention of Food Adulteration Act and
Packaging and Measurement Act should be strictly observed. It
must be understood that any adulterator can cause great harm to
the health of the public and the responsibility in that case will have
to be fixed.
6.16
State Govt. was of the view that the programme for fortification of
wheat flour with soya flour would result in increase in body mass
and ensure better growth of the target groups and improve general
health and reduce morbidity.
State Govt. has budgeted about
Rs.250 crores for fortified items in TPDS. Govt. has issued
instructions for Nukkad chakkis to mix powder of iron and folic acid
while grinding wheat. Govt. has further taken up fortification of
wheat flour programme with the help of Gujarat Flour Mills
Association. As noted above though there is objection to the
distribution of fortified atta no instance has been brought to the
notice of the Committee where such programme caused any harm
to any person or any section of the society by the use of fortified
atta.
86
Chapter 7
TRANSPORTATION
7.1
Foodgrain is transported from FCI godowns to GSCSC godowns and
then the FPS dealers lift the same from GSCSC godowns. However,
in case of fortified atta, wheat is transported from FCI to flour mills
and then the fortified atta packed in HDPE bags is transported from
Flour mills to GSCSC godowns. Transportation cost for transporting
foodgrain from FCI to GSCSC godown is born by GSCSC. In case of
AAY wheat transportation charges from FCI to Flour Mill and again
from Flour Mill to GSCSC godown is borne by GSCSC. In Kutchch
region where there is no Flour Mill 50% Transportation cost is
borne by Mill and 50% by Corporation.
7.2
The foodgrain is lifted from FCI by the Transporters of GCSC whom
GSCSC appoints on Contractual basis for a year through tender
process. Contract is for one year and 2 months extension is given
to contractors till the appointment of new transport Contractor. For
appointment of Transporters Tenders are published in newspaper
and e-tendering is done district wise.
Negotiation with Lowest
tender applicant is done by Managing Director of the Corporation
and the Scheme representative of government who finalise the
rates. It is then forwarded to the Principal Secretary of Food and
Civil Supplies Department who is chairman of GSCSC. The Tender
Committee comprises of the following officials:
i.
Principal secretary
ii.
Secretary finance of State Govt.
iii.
Managing Director, GSCSC Ltd.
iv.
Director of Food and Civil Supplies Department
v.
Director of schemes
87
7.3
The tender committee finalizes the same and approves it and
agreement is entered into with the Transporter so approved. The
agreement is entered and signed by Dist. Supply Officer and
Transporter. Presently there are 27 contractors in Gujrat one in
each district (26 dist. in state) and one in Ahmedabad city.
7.4
Presently transit loss is allowed to transporters which are as
follows:
a. Upto 30 km transit loss of 15 kg / 10 ton
b. For distance of more than 30 kg transit loss of 20 kg /
ton
7.5
However from 24th August 2009, no transit loss will be allowed. This
will be implemented in phases and will be enforced fully within one
month which is being done in pursuance to the recommendations of
Indian Institute of Management in order to implement effective
transportation
system
and
to
reduce
the
overall
cost
of
Transportation.
7.6
District Godown Inspector (DGI) does the quality check at FCI.
Weighment check is done at GSCSC godown as they weigh the
truck while receiving same at their godown in the weighbridge.
7.7
The Lifting in charge of GSCSC remains at FCI during the lifting of
grain. (There is no permanent person and it depends on the area..
ie. Lifting incharge from the concerned area remains present at the
FCI). The Gujarat State Civil Supplies Corporation (GSCSC) merely
identifies the wheat from the stock in the FCI godown which is to
be lifted by GSCSC under PDS.
Thereafter, the wheat bags is
weighed in the truck by FCI and the driver is given gate-pass and
weighment memo.
It is the driver who takes the truck to the
particular flour mill specified where the wheat supposedly is again
88
weighed but in fact only bags are counted. After the wheat is
ground into fortified atta and packed in HDPE bags/plastic bags, the
bags are sent to the godowns of GSCSC where the bags are
counted. Again, it is the truck driver who takes the atta bags from
GSCSC and no officer accompanies the Truck. There is no check
when the truck leaves FCI godown and reaches the flour mill and
when the truck brings bags of atta from flour mill to godowns of
GSCSC. Committee would suggest bar-coding of wheat bags from
FCI to flour mills. Bar-coding for wheat bags from FCI godowns to
State godown may not be necessary as much as it was stated
before the Committee that bags arriving from FCI godowns are
opened and each bag is standardized by ensuring that each bag
has 50 Kg. of food grain. There is no check of either quality of
wheat coming to mill or the atta leaving the mill. It is necessary
that samples of atta are taken from the flour mill and tested by an
independent agency. There should be bar-coding of wheat bags
from the FCI godowns and bar-coding machine reader be installed
at the flour mill. There can not be any compromise in the quality of
the wheat and fortified atta. It is the FPS owner who lifts atta bags
from GSCSC godown according to his entitlement, at his own cost
of transportation.
Time schedule should be strictly maintained
and adhered to. Considering the time factor for consumption of
atta,
is essential that there should be door step delivery of the
atta bags to FPS.
This will also add to the income/commission
earning of the FPS owner as he will save on transportation.
7.8
Rates of transportation:
Distance
Rate per ton per km ( Rs)
0-10 km
14.50
0-25km
6.00
0-50km
4.59
89
0-100km
3.30
0-200 km
2.11
0-350 km
2.00
More than 350 km
7.9
2.00
The above mentioned rates vary to this extent because these are
standard rates for Transporters to transport all commodities which
include sugar, edible oil etc.
7.10
FPS dealers themselves lift and transport foodgrains from GSCSC
godown to their FPS. Foodgrain is given to FPS after weighing the
same in Electronic Weighing machines, and manual weighment slips
are issued to FPS dealers. No officer of the Department or GSCSC
visits and checks whether the stock lifted from Godown by FPS
dealer has reached FPS or not. Though it was informed by the
officials that they do regular inspections but Committee found that
inspections are rarely done. Hence there is no check regarding
transportation of foodgrain from GSCSC Godown to Fair Price shop.
7.11
Suggestions
1. A proper vigil has to be kept on transportation of foodgrain at all
level ie from FCI to GSCSC and from GSCSC godown to FPS.
Similarly the transportation of foodgrains to flour mill and then
transportation of fortified atta from flour mill to GSCSC godown be
strictly monitored.
2. Fortified wheat flour has a shelf life of only 45 days. To ensure that
wheat flour is supplied to the consumer at least 30 days before the
expiry date it is necessary that bags of fortified wheat flour are
90
delivered to the FPS dealers at the door step by GSCSC within 5
days of the date of grinding.
3. Delivery of foodgrain to the door step of FPS will curb the diversion
of foodgrain.
4. GPS system can be used for tracking the movement of trucks
carrying foodgrains. Attachment of device of GPS in the trucks
engaged in PDS may be made part of the tender conditions. There
should be routine checking of the GPS units to detect tempering
etc. The task of monitoring of the GPS system should be with the
Department however, the ombudsman will also have access to the
system to ensure its proper implementation.
5. Bar coding may also be done on the wheat bags from FCI to GSCSC
and of atta bags at flour mills.
91
Chapter 8
VIGILANCE, ENFORCEMENT & COMPLAINT MECHANISM
8.1
The Statutory framework of the PDS Control Order, 2001 provide a
detailed layout for the vigilance, enforcement and monitoring of the
Public
Distribution
System,
particularly
with
regard
to
the
functioning of the Fair Price Shops.
8.2
The Committee found that though, on paper, there is a
comprehensive procedure for constitution of Vigilance Committees
at the Village, Taluka, District level and State level in practice these
Committees are not functioning as per rules. The enforcement
mechanism in the State is functional but the rate of inspections is
so low that identification of those indulging in malpractices is
difficult and thus ‘action taken’ records are also low.
8.3
Vigilance
8.3.1 Composition and Functioning of Vigilance Committees
The Vigilance Committees in the State function at 4 levels which
are:
(i)
Village Vigilance Committee
(ii)
Taluka/ District Vigilance Committee
(iii)
District Vigilance Committee
(iv)
City Vigilance Committee
(v)
State Vigilance Committee
The term of all the Committees is for 2 years.
8.3.2 Village Vigilance Committee
Vide Resolution No.PDS/102005/3685/K dated 26.09.2005 the
Government
of
Gujarat
issued
instructions
with
regard
to
constitution of Vigilance Committee at the Village level. Accordingly,
the constitution of Village Vigilance Committee shall be as under:
92
Chairman of the Committee : The Sarpanch of the Village concerned
shall be Chairman of this Committee.
Members of the Committee: The Committee shall consist of the 9
members as follows:(1) One Chairman :Sarpanch of the Village Panchayat concerned
(2) Eight Members
The cardholders attached to the FPS of the area concerned or the
family members whose name has been entered into the ration
cards
may be appointed as the members out of which there shall be:
(i)
2 members from BPL cardholders
(ii)
2 members from Antyodaya Card holders
(iii)
1 member from the teachers of the Primary School
(iv)
2 members as the representative of the women
(v)
1 member: an eminent person of the Village.
Out of four members from BPL cardholders and the Antyodaya
cardholders as mentioned above, there shall be appointed one
member from the Scheduled Caste, one member from the
Scheduled Tribe(in the village where there is population of ST) and
one member from SEBC.
Appointment and recognition of the members of the Committee :
(i)
The Mamlatdar of the Taluka concerned shall constitute such
committee
at every
village
under
his charge
and
appointment of the members of such committee shall be
made by the Taluka Mamlatdar concerned.
The Taluka
mamlatdar shall have to complete the process of such
appointments within 15 days upon expiry of the term of
every two years. He shall have to communicate the orders
of the appointment to the Collector, the District Supply
Officer concerned and every member of the Committee.
93
(ii)
The District Supply Officer, after collecting details of such
Committees of every taluka and preparing a typed copy as
well as a compact Disc of the detail shall have to
communicate the same to the Director(Civil Supply)
The
Director(Civil Supply), on collecting information of every
district and preparing a computerized CD shall submit same
to the Food, Civil Supplies & Consumer Affairs Department.
Every member of the Committee shall be given appointment
with the signature of the Taluka Mamlatdar in which it the
term of appointment shall have to be mentioned.
Meeting of the Committee : Such Committee shall meet at every
month between 15th and 20th day of the month.
In cases of
urgency, more meetings may be called with shorter intervals. The
minutes of the meetings shall have to be communicated to the
District Supply Officer/Collector. The Chairman of the Committee
shall have to summon the meeting of the Committee. The members
of the Committee shall be communicated about the meeting in
writing. Presence of more than four members shall form quorum of
the meeting.
8.3.3 Taluka Vigilance Committee
Vide Resolution No.PDS/102006/GOI-117(1)/K dated 21.08.2006
the constitution of the Taluka Vigilance Committee shall be as
under:
Chairman and Vice Chairman :
The Taluka Mamlatdar concerned
shall be Chairman of this Committee and the President of the
Taluka Panchayat concerned shall be Vice Chairman of the
Committee.
94
Members of the Committee: The Committee shall consist of the
members as follows:(i)
MLA of the Taluka - Member
(ii) Taluka Development Officer – Member
(iii) Three women members from the members elected in the
Taluka Panchayat – out of which one member should be
women belonging to scheduled caste.
(iv) Other three members from the elected members of the Taluka
Panchayat.
(v) Chairman of the Village Vigilance Committees - the number of
such Chairman in this committee should not exceed 10% of
the aggregate Chairmen of the Village Vigilance Committees
in the Taluka concerned.
(vi) The President of one NGO in the Taluka concerned.
(vii) President of Taluka FPS Association – 1 Member
Appointment and Recognition of members:
1.
The
Taluka
Mamlatdar
concerned
shall
constitute
such
Committee in his Taluka and appointments of the members in such
Committee shall be made by the Taluka Mamlatdar concerned, but
he shall have to observe this
process in consultation with the
Minister-in-charge of the District and he shall obtain the signature
of the Minister –in charge.
2. The District Supply Officer, after collecting details of such
Committees of every Taluka and preparing a typed copy as well as
a compact disc of the detail shall have to communicate the same to
the Director (Civil Supply). The Director (Civil Supply), on collecting
information of every district and by preparing a computerized CD
shall submit same to the Food, Civil Supplies & Consumer Affairs
Department. Every member of the Committee shall be given an I95
card for his appointment with the signature of the Taluka
Mamlatdar in which it shall have to be mentioned the
term of
appointment and such I cards shall have to be withdrawn upon
expiry of the term of appointment.
Meeting of the Committee: Such Committees shall meet at every
month between 15th and 20th day of the month.
In case of
urgency, more meetings in shorter intervals may be called
The
minutes of meetings shall have to be communicated to the District
Supply Officer/Collector.
The Chairman of the Committee shall
have to summon the meeting of the committee. The members of
the committee shall be communicated about the meeting in writing.
Presence of
more than four members shall form quorum of the
meeting.
8.3.4 District Vigilance Committee
Vide Resolution No.PDS/102006/GOI-117(2)/K dated 22.08.2006
the Government of Gujarat directed that the constitution of the
District Vigilance Committee shall be as under :
Chairman and Vice-Chairman of the Committee :The District
Collector of the district concerned shall be Chairman of the
Committee and the President of the District Panchayat concerned
shall be Vice-Chairman of the Committee.
Members of the Committee : The Committee shall consist of the
members as follows:
(i)
District Development Officer, the Member
(ii)
District Supply Officer-Member-Secretary
(iii)
All the Members of Parliament-Members
(iv)
All the MLAs of the District – Members
(v)
Three Presidents amongst the Presidents of the Taluka
Vigilance
96
Committees shall be Members (Out of which there shall be
one woman member).
(vi)
Three members of the District Panchayat from whom one
must
be woman member and one member belonging to SC-
Members
(vii)
Two members from the NGO of the district - Members
(viii)
President of the District FPS Association –Member
Appointment of members :
(i)
The District Collector shall constitute such Committee in his
district concerned and appointment of the members in this
Committee shall be made by the District Collector but he
shall make such appointments in consultation with the
Minister-in-Charge of his district by obtaining the approval.
The District Collector shall have to complete the process of
such appointments within 15 days upon expiry of the terms
of every two years. He shall have to communicate the order
of appointment to every member of the Committee.
(ii)
The District Collector shall have to furnish all the details of
this Committee to the Director (Civil Supply). The Director
(Civil Supply) by collecting the details and preparing
computerized CD, shall submit the same to the Food, Civil
Supplies & Consumer Affairs Department.
Meeting of the Committee: The Committee shall meet between 20th
and 25th day of every month. It may be called upon more meetings
with shorter intervals in cases of urgency.
The minutes of the
meetings shall be communicated to the Controller (Food & Civil
Supply). The meeting shall be summoned by the Chairman. The
members of the Committee shall be communicated in writing.
97
Presence of more than eight members shall form the quorum of the
meeting.
8.3.5 City Vigilance Committee
Vide Resolution No.PDS/102006/GOI-117(4) K dated 23.08.2006
the Government of Gujarat directed that the constitution of the
City Vigilance Committee shall be as under :
Chairman of the Committee: The Corporator of the Municipal
Corporation concerned / Nagar Panchayat concerned shall be the
Chairman of this Committee
Members of the Committee : Chairman and eight members.
The Committee shall consist of the nine (9) members namely:The cardholders attached to the FPS of the area concerned or their
family members whose names are entered in the ration cards may
be appointed as the members out of whom, there shall be –
(1) Two members from the BPL card holders.
(2) Two members from the Antyodaya cardholders
(3) 1 (one) member from teachers of the primary school.
(4) 2 members as women representatives..
(5) The eminent person of the area concerned –as a member
Out of the four members from the BPL cardholders and the
Antyodaya cardholders as mentioned above, there shall be
appointed one member from the Scheduled Caste one member
from the Schedule Tribe ( in the area where there is population of
ST) and one member from SEBC.
Appointment and recognition of the members :
(i)
Taluka mamlatdar concerned shall constitute such committee
for every shop in every city and appointment of the
members in the committee shall be made by the Taluka
98
Mamlatdar but the Taluka Mamlatdar shall constitute this
Committee in consultation of the Minister-in-charge of his
district concerned.
The Taluka Mamalatdar shall have to
complete the process of such appointments within 15 days
upon expiry of every term of the two years. He shall have to
communicate the orders of the appointment to the Collector
concerned. The District Supply Officer concerned, the
manager of the FPS as well as to every member of the
Committee.
For
Ahmedabad
City,
Food
Controller,
Ahmedabad City shall constitute such committee for every
shop.
(ii)
The District Supply Officer, by collecting details of such
committee and by preparing a type copy and a CD, shall
submit to Food, Civil Supplies and Consumer Affairs
department. Every member shall be given and I-Card with
the signature of the Taluka Mamlatdar in which it shall be
mentioned the term of appointment and such I-Card shall be
withdrawn on the expiry of the term.
Meeting of the Committee : The Committee shall meet between
15th to 20th day of every month.
It may be called upon more
meetings with shorter intervals in cases of urgency. The minutes of
the meetings shall be communicated to the District Supply Officer
and the Collector.
The meeting shall be summoned by the
Chairman. The members of the Committee shall be communicated
in writing.
Presence of more than four members shall form the
quorum of the meeting.
8.3.6 State Vigilance Committee
99
Vide Resolution No.PDS/102006/GOI/117(3)/K dated 24.08.2006
the government of Gujarat has instructed that the constitution of
the State Level Vigilance Committee shall be as under :
Chairman of the Committee : Hon. Minister (State level) Food, Civil
Supplies & Consumer Affairs Department shall be Chairman of this
Committee.
Members of the Committee: The Committee shall consist of the
members namely:(i)
Principal Secretary, Food, Civil Supplies & Consumer Affairs
Department
(ii)
Joint Secretary(PDS). Food, Civil Supplies & Consumer Affairs
Department – Member Secretary.
(iii)
Director, Food and Civil Supplies – Member Secretary.
(iv)
Managing Director, Gujarat State Civil Supplies Corpn. Ltd –
Member
(v)
Each MP from North, Central, South and Kutchh Saurashtra
Zone – Member.
(vi)
Two MLAs of Vijaypur, Kalol, Khambhat, Lunavada, Lathi,
Halvad, Surat (west) and Kamrej.
(vii)
Each Presidents of the district Panchayats of the North,
Central, South and Kutchh – Saurashtra Zone – (8)
President of CERC – Members.
(viii)
President, The Gujarat State Fair Price Shops Association Member
Appointment and Recognition of the members :
There shall be constituted such Committee at the State Level and
the appointments of the members in this Committee shall be made
by the Government. The Government shall complete the process of
such appointments within 15 days upon expiry of the term of every
two years. The Government shall communicate to every member of
the Committee about such appointment.
100
Meeting of the Committee: This Committee shall meet at every
quarter month. More meetings may be called upon with shorter
intervals in the cases of urgency. The minutes of the meeting shall
be prepared by the Director (F&CS). The meeting shall be
summoned by the Chairman.
The function of calling upon the
meeting shall be carried out by the Director (F&CS). The members
of the Committee shall be communicated in writing in regard to the
meeting.
Presence of more than eight members at the meeting
shall form quorum.
8.3.7
Functions of the Committees
The main object of the Committee shall be to ensure timely and
complete withdrawal of quantum of the commodities by the
beneficiaries as allotted to it by the authorized authority and in time
and proper distribution by the said shop.
The members of the
Committee shall take frequent visits and may inspect upon the
matter mentioned below and ensure the following:(i)
That the FPS dealer performs his duties as per the duties
mentioned in PDS (Control) Order, 2001 and he shall have
to communicate to the concerned official in writing in case
of any breach of any provisions by such shopkeepers.
(ii)
That the FPS dealer has drawn the quantum of the essential
commodities as allotted to the FPS from the Supply Officer.
(iii)
That the FPS dealer has displayed at the conspicuous place
the notice declaring the stock situation of the quantum of
the supply of the essential commodities in the shop on the
day.
101
(iv)
That the FPS dealer has displayed on signboard the list of
prices of the commodities at the conspicuous place for public
view.
(v)
That the distribution of the essential commodities is made to
the valid cardholders or not. In case of any lapse, the
committee/member of the committee shall draw attention of
the Mamlatdar forthwith and accordingly, the Mamlatdar
shall have to initiate actions forthwith to remove the lapses
or to remove the defects.
(vi)
The District Supply Officer as well as the Mamlatdar, during
the visit, shall have to remain in contact with the members
of the Committee and initiate actions to redress the
complaint by paying the attention to the complaint.
8.4
Enforcement
8.4.1 Inspections of FPS :
The administration has been assigned specific duties with respect to
the monitoring and inspections of the system. The inspections are
to be conducted in the following manner:
Authority
Inspections per month
State Level
Directorate of Civil Supplies
District Level
District Supply Office
(a) Team wise
(b) Supply Inspector (if not team)
(c) Prant officer
Ahmedabad City
Food Controller office
(a) Team wise
102
3
5
4
1
6
(b) Supply Inspector (If not in team)
(c) Office of the Zonal Officer
(i)
Zonal Officer
(ii)
Supply Inspector
Taluka Level
(a) Mamlatdar
(b) Dy. Supply Mamlatdar
(c) Supply Inspector
(d) Circle Officer/ Circle inspector
4
2
3
1
2
4
1
8.4.2 However, the Committee observed that the rate at which the
inspections are conducted at the FPSs is very low. For instance, as
per the information provided to the Committee, there are total 612
FPS in the Jamnagar District of the State. During the year 2008, the
total number of inspections conducted in the district was 1255.
That is, each FPS was approximately inspected only twice in one
year. The figures for the years 2007 and 2006 were also similar.
Accordingly, ‘action taken’ under the Prevention of Black Marketing
Act was also low. In the year 2008, there were no cases booked
under the said Act. In 2007 and 2006, respectively, 4 and 3 cases
were booked for the entire district.
Similarly, in Panchmahal district, there are total 692 FPSs and in the
year 2008- 2009 only 637 inspections were carried out. That is, on
an average some of the FPS would not even have been inspected at
all during this period. Only one case was registered under the
Prevention of Black Marketing Act.
In Ahmedabad city, during August 2008 to July 2009, for total 857
FPS only 2798 inspections were conducted. This amounts to about
3 inspections per FPS per year.
Therefore, since the FPSs are not being inspected regularly the
probability of identifying errant FPS dealers is also low. This is
reflected in the low rate of action taken reports.
8.5
Complaint Mechanism
103
8.5.1 There is no specified complaint mechanism which is dedicated to
dealing with grievances pertaining to PDS. There is provision for the
FPS dealers to maintain a Complaint Book at their shops wherein
the beneficiaries may enter their complaint against the dealer if
any. However, as was expected, all the FPS visited by the
Committee either did not maintain such a book or did not have any
complaint registered therein. None of the beneficiaries that the
Committee spoke to were aware of Complaint Books at their
respective FPS.
8.6
Legal Metrology Department
8.6.1 Legal Metrology Department of the State is responsible for
certifying the weights and scales of all establishments.
8.6.2 The FPS dealers are to take certification from the Weights and
Measures Department after getting their weighment machine
checked. The certification expires every two years.
8.6.3 The FPS dealers are supposed to take their weighment instruments
including the weights and the scales to the office of the Legal
Metrology Department which stamps the instruments and gives
receipt of the amount paid by the dealer.
8.6.4 However there is no coordination between the Legal Metrology
Department and the PDS enforcement agencies. The Metrology
department does not conduct regular or random inspections of the
FPSs, the FCI and the GSCSC godowns to ensure that the weights
and scales used therein are correctly aligned. Since there are no
inspections, the question of initiating action against errant
establishments also does not arise. Thus the role of the Legal
Metrology department is limited to giving annual certification.
104
8.7
Observations and Findings
8.7.1 The Committee observed that though on paper there is an
elaborate scheme of constitution of Vigilance Committees at various
level, in practice the Vigilance Committees are not functional in
most parts of the State. The Committee inspected files pertaining to
Vigilance Committees in various districts and found that either the
Vigilance Committee had not been constituted or
wherever
constitution of the Committee had taken place, the meetings were
not taking place. Upon inspections of some files it was observed
that though the meetings took place, however, the only information
recorded in the minutes was that the quorum of the Committee was
not complete and thus no decision could be taken in the said
meeting. For instance, during its visit to the office of the
Mamlatdar, in Taluk Shahera in Panchmahal district, the Committee
was informed that meetings of Vigilance Committees are to be
conducted every month, however, upon inspection of files it was
found that only one meeting had taken place in the last two years.
Once a Committee is constituted, it functions for 2 years. The
previous Committee was formed in November 2006. Its
term
expired in November 2008. Till August 2009, new Vigilance
Committees
had
been
not
been
constituted.
Proposal
for
constitution of new Committee was sent on 20.08.2009. However,
the same is still pending. It was stated that there was delay in
constituting fresh Vigilance Committee because of the Election code
which was in force from 2nd March 09 to 28th March 09. More than 5
months had already lapsed since the end of the election code.
During its visit to the Model FPS at Piplod, district Dahod (Name of
the dealer – H.Y. Dalal, Shop No.220/179), the dealer informed that
the Vigilance Committees in the area were dysfunctional.
105
8.7.2 During the various field visits conducted by the Committee it was
also observed that at none of the places visited by the Committee,
were the beneficiaries aware of the existence of Vigilance
Committees. Thus, one of the main purposes of the functioning of
the Committee, that is active participation of people in vigilance of
functioning of PDS, was not being fulfilled.
8.7.3 There is no separate system of implementation of enforcement and
vigilance in the PDS as currently there is no separate cell for the
purposes of monitoring PDS. The Zonal Officer / Mamlatdar, and
other such officers are responsible for supervising not only PDS
activities but also have the responsibility to supervise and achieve
inspection targets on other projects of the government like
distribution gas through various gas agencies. The Mamlatdars have
also been assigned important roles in the functioning of the
Vigilance Committees. Thus it becomes difficult for these officers to
sincerely meet all their targets of inspections and then continue a
follow up on the same. It is recommended that a separate division
of enforcement and vigilance of PDS be started in the State in order
to deal with the specific problems of PDS.
8.7.4 The Legal Metrology Controller does not play an active role in
monitoring and enforcement of the PDS. At many of the FPSs
visited by the Committee, upon probing it was found that often the
FPS dealers get a certificate without actually taking their weighing
instruments to the office by bribing a clerk. In such a situation,
though the FPS dealers get a certificate and even get their
instruments stamped, they however do not have a receipt for
having made the payment for the said process. The Committee
came across such an instance during its visit to the FPS No.09/103
at Shahibag, Ahmedabad. The officials of the Legal Metrology
106
department should also be made accountable for any act of
omission or commission in fulfilling their duties.
8.7.5 AAY beneficiaries in Gujarat are given atta (wheat flour) instead of
wheat grain. This grain is sent directly from the FCI to the flour
mills where it is ground. These mills are not purely for grinding PDS
food grain but also undertake grinding of privately procured food
grain. The Committee observed that there was no system of
ensuring that the PDS and the private grain is not exchanged or
mixed up. There was no vigilance on the process of grinding PDS
food grain to ensure that inferior quality food grain is not
exchanged with good quality PDS food grain. The Committee was
informed that the inspectors from GSCSC make conduct inspections
to check the quantity of food grain at the mill. They also check on
the general quality of the wheat flour however they do not check
whether the flour is from the PDS grain received from FCI.
8.7.6 The Committee observed that at the time the FPS dealers come
with their monthly requisition of food grain to the office of the
Mamlatdar/Zonal Office, they only submit a Stock Patra/Sheet and
an Indent Form. The FPS dealer shows only these documents while
making his requisition. There is no system of verifying the details
mentioned in the Stock Sheet and Indent Form by going through
the Stock and Sale Registers. The Committee was informed that the
Stock and Sale registers are checked during inspections conducted
by the concerned officials. However the Committee observed that
such inspections are random and are rarely conducted. It is only by
chance that an officer may ever come across a discrepancy in the
accounts of the FPS dealer and the demands that he makes. Thus
the allocation of grain to FPS dealers must be made only after
thoroughly verifying the Sale and Stock registers maintained at the
FPS.
107
8.7.7 Upon its visit to the FPSs in the various Districts, the Committee
found that the inspection books of all the FPS dealers were either
blank or had only a few entries. During its visit to FPS at Swami
Narayan Mandir Street, Taluka Shahera, district Panchmahal (FPS
Dealer – Mr. P.S. Soni, Licence No. – 37/04),the Committee
perused the inspection / visit book at the FPS and found that the
inspection book was issued in 2004 however, no inspections were
recorded from 2004 to August 2008. Thereafter, inspections were
made on 14.09.2008 by Supply Inspector, Godhra & Deputy
Mamlatdar, 17.11.2008 by Assistant Regional Director, 23.05.2009
and 16.07.2009 by the Supply Inspector, Godhra. During its visit to
the Model FPS at Piplod, district Dahod (Name of the dealer – H.Y.
Dalal, Shop No.220/179), the dealer informed that the last
inspection made by the inspector was on 29.07.2009 and prior to
that on 24.04.2007. During the Committee’s visit to FPS licence
No.63/05 at Gandhigram, Junagarh also the Committee observed
that the inspection/ visit book was issued on 10.09.2003 but only 4
inspections had been recorded therein. The inspections recorded
were on 10.09.2003, 10.12.2004, 21.09.2005 and 10.04.2009.
8.7.8 Unlike in many other States, the State of Gujarat does not have a
concept of joint sampling of grain at any of the State Godowns at
the time of disbursement of grain. Thus there is no way to ensure
that the food grain being sold at the FPS is of the same quality as
has been allocated by the government. Thus, there is no check on
the quality of grain which is disbursed from the GSCSC godowns to
the FPSs. It is recommended that a system of joint sampling of
food grain be started and all FPS dealers be instructed to keep
officially sealed samples of food grain at their shops.
108
8.7.9 There is no effective and systematic complaint redressal mechanism
for the common people. During the course of its visit to various
districts in the State, in particular the villages and the far flung
areas, the beneficiaries were completely unaware of their rights and
the forum of redressal of their complaints. There is no system of a
toll free helpline number, or for that matter any telephone number
where the beneficiaries can register their complaint or call to ask
specific queries with regard to their entitlement. It is recommended
that there be a PDS specific complaint mechanism and that the
State set up a 24 hours toll free helpline where a beneficiary can
lodge his complaint. The toll free number should be printed or
stamped on the Ration Card.
There should be a system of the
follow up of the complaint. A post of Ombudsman/Regulator should
be set up as suggested by this Committee in its Delhi Report. The
Ombudsman/Regulator should look into the complaints received
through the helpline and take appropriate action against the
defaulting licencees and the officials concerned.
8.7.10 A Public hearing for PDS on the lines of the Lok Adalat ( Bijlee/
telephone/ water) must be convened at a designated place, time
and day every 2/3 months where general public can seek to resolve
outstanding issues pertaining to the PDS. These may include those
relating to their category / entitlements, non-issuance of the cards,
bifurcation of cards, wrong inclusion of APL, complaints regarding
under-weighment etc.
PDS Lok Adalat so constituted should be
presided over by District Judge next to the Principal District Judge
and should include the Collector of the District / the District Supply
Officer. A system of accountability must be put in place to ensure
the implementation of decisions taken during these hearings.
109
Chapter 9
COMPUTERISATION
9.1
The Public Distribution System (Control) Order, 2001 provides that
the State Government shall ensure monitoring of the functions of
the Public Distribution System (PDS) at the Fair Price Shop (FPS)
level through the computer network of the National Informatics
Center (NIC) installed in the District NIC centers. For this purpose
computerized codes shall be issued to each FPS in the district.11
9.2
The Committee has already submitted a detailed report on
Computerisation of PDS which may be read as part of this report.
The present chapter deals specifically with computerisation of PDS
in the State of Gujarat.
9.3
The PDS is a network of various entities that are linked to each
other. In order to ensure effective functioning of the PDS the
transactions between these entities have to be transparent,
accurate and updated. The same can be best achieved by linking
the PDS through an online computer network.
9.4
Online networking of PDS will ensure that all latest information is
available online for the benefit of everyone. The communication
gap between the Zonal office/ office of the Mamlatdar, the FPS and
the Godown will cease to exist. Online availability of information will
keep a check on overstocking and ensure maximum godown uitility.
JIT12 concept can be introduced to control wastage of food grain.
Para 6(6) of the Annex to the Public Distribution System (Control) Order, 2001
JIT- Just in Time refers to a concept of bringing the right material at the right
time at the right place. Items must arrive exactly at the time they are needed,
that is ‘just in time’, neither earlier nor later. Goods arrive when needed for use
rather than becoming expensive inventory that occupies costly warehouse space.
11
12
110
There will also be a check on whether the FPS dealers are lifting
their entire quota in time and that the PDS commodities reach the
actual beneficiaries.
9.5
Thus, the Food, Civil Supplies and Consumer Affairs Department,
the office of the District Collector, the office of the District Supply
Officer, the office of the Mamlatdar, the Gujarat State Civil Supplies
Corporation, the office of the District Supply Manager, the
Godowns, the FPS and the Banks where the FPS dealers deposit the
Demand Drafts; all have to be linked through an online network.
9.6
Current status of Computerisation of PDS in Gujarat
9.6.1 The Committee was informed that computerization of the FCS &
CAD has been done in four parts :
(i)
Computerisation of ration cards
(ii)
Commodity Price Monitoring
(iii)
Web sites
(iv)
Development of PDS
9.6.2 In order to ascertain the extent of computerization in the PDS in
Gujarat, the Committee visited the Zonal Office-1 at the Lal
Bungalow Campus, Jamnagar with the purpose of ascertaining the
procedure for issuance of ration cards and allocation of grain to
each FPS.
9.6.3 The Committee was informed that for the purpose of issuing ration
cards and allocation of grain the department relies upon a
computer software which contains the database of information
pertaining to the details of all ration cards in the State. The
This aims at controlling wastage and saving valuable resources like time, money
and labour.
111
software also contains an updated monthly district wise and zone/
Taluka wise allocation of food grain. The Committee was informed
that this web based solution for computerization of issuance of
ration cards in Gujarat was launched in April – 2007.
9.6.4 Issuance of Ration Cards
In case of issuance of ration card, the Zonal Officer/ Mamlatdar
peruses the application and enters the information on the database.
A new registration number is generated. In the process, the
surrendered ration card number of the beneficiary is also fed on the
system. However, if the previous/ surrendered ration card has not
been deleted from the database, then this fact will be reflected on
the software and the officer issuing the card will get to know that
the ration card of the beneficiary has not been formally surrendered
or deleted from the database. In this case, the beneficiary will have
to ensure that his old ration card is deleted from the database.
9.6.5 The software is such that the officer in a particular district or zone
cannot access all details of all the ration cards in the State.
However, by putting a specific query on the database, he can get to
know if a particular card has been surrendered/ deleted or not in
any part of the State.
9.6.6 Allocation of grain
At the time of making FPS wise allocation, the Zonal Officer/
Mamlatdar refers to the database in the software which contains
the list of FPS along with its details. The Zonal officer/ Mamlatdar
also refers to the database to determine the monthly allocation to
his Zone/Taluk. Thereafter, on the basis of the demand received
from the FPS dealers in his Zone/ Taluk, the Zonal Officer makes
FPS wise allocation of grain. The allocation and the list of
beneficiaries in each FPS is updated online regularly.
112
The Committee observed that though extent of the software was
limited to allocation of grain to FPS and issuance of ration cards,
the software was comprehensive and contained all details that were
relevant for its purpose.
9.6.7 Roaming Ration Card
To ensure that cardholders of both BPL and AAY categories are not
deprived of their food needs while they migrate in search of job
opportunities, the Government has initiated a Roaming Ration Card
system. This card is in the form of a booklet with all details about
family members registered in the card and attached to a shop. The
system has the provision for an additional slip showing prorated
ration quota for original cardholders. A roaming card is also
registered on the web portal and saved in the database, which
could be viewed in other Talukas using the portal. The system will
also ensure that the total ration does not exceed the entitlement
and will allow access rights to designated functionaries for
designated purposes only.
9.6.8 Websites
The Committee observed that currently the following websites have
been hosted on the internet: www.fcsca.gujarat.gov.in, www.dcsdof.gujarat.gov.in and www.imdca.gujarat.gov.in. These websites
contain
information
on
departments
with
regard
to
their
functioning, projects, rules etc. The websites also contain statistical
data and financial reports that are updated from time to time.
9.7
Proposed e-Governance solution for PDS in Gujarat – Smart
PDS
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9.7.1 For the implementation of the various Central Government and
State Government schemes under the Public Distribution System
the State Government has devised the concept of a complete eGovernance Solution.
9.7.2 This concept aims at use of modern technology to minimize the
existence of ghost ration cards, to have more accurate information
on ration cards, to increase efficiency and effectiveness of Public
Distribution System in the State.
9.7.3 The proposed system envisages a central database stored in a
server at the head quarters connected to the district servers
through RAS13 and leased line support with firewall which in turn
are linked to zonal database and finally to the FPS.
9.7.4 The consumer is provided with a Smart Ration Card. The data of
the Election Commission will be used for issue of ration cards and
only persons below 18 years will be added. Smart roaming Ration
Card will be given to needy people. The FPS has a database of the
consumers, a terminal, a smart card reader and a printer. He is
linked to the Zonal Office through Dial Up or ISDN connection and
the Zonal Office is similarly linked to the Godown. The FPS owner is
also given a smart card which contains the details about his
entitlement. As he inserts his card in the terminal at his shop the
details of the distribution made by him are transferred to his FPS
card. He then takes it to the Zonal Office and the information from
the FPS card is read into the database of the Zonal Office His
entitlement for the next month is determined and permit details are
stored in his card. The FPS owner then goes to the bank and
RAS - Remote Access Service is a Windows NT/2000 Server feature that allows
remote users access to the network from their Windows laptops or desktops via
modem.
13
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deposits the money. Then he goes to the godown and on the basis
of permit details in the FPS card he is given the allocation for the
next month. He then has to bring his card and transfer the
allocation details to his database.
9.7.5 The system will run seven software modules:
At the Zonal level, FPS level, Godown Level, at the level of the
District Supply Manager level, at the level of the District Supply
Officer, at the Head Office of the Government, at the Head Office –
GSCSC
9.7.6 The Committee was informed that currently the work on Smart PDS
project has been put on hold as the Government is waiting for the
details of the Unique Identification project proposed by the Central
Government and may consider using the data of UID for issue of
ration cards. The Unique Identification Authority of India is a body
of the central Government responsible for implementing the
Multipurpose National Identity Card or the Unique Identification
Card project. However, once the proposed project is implemented,
it will help in making the PDS in Gujarat more effective.
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Chapter 10
RECOMMENDATIONS
1.
Considering that huge quantity of PDS wheat is now sought
to be ground into duly fortified wheat flour/atta, it is
incumbent that there should be dedicated flour mills for the
purpose, with captive production. The flour mills can be
established on Public Private Partnership (PPP) basis.
2.
The date of grinding of the wheat and the expiry date should
be prominently given on the atta bag. The bag should also
contain a warning in bold letters that the atta must be
consumed before the expiry date.
3.
The beneficiaries should be educated as to the necessity of
consuming the atta within the prescribed period and the
consequences of the atta getting deteriorated if it is not
consumed within the prescribed period. Hoardings should be
put up at important public places in the districts, Talukas and
villages giving information about the advantages of fortified
atta, the time limit of consumption of atta, and the helpline
numbers to lodge complaints, category wise entitlement of
PDS food grain to card holders, closing day and working
hours of the FPS.
4.
An officer of the GSCSC should always be present in the flour
mill when PDS wheat is being ground. He must certify that
grinding and sealing of the atta bag was done in his
presence and that fortified atta is of the quality prescribed.
5.
A sample should be taken from the fortified atta in three
parts which should be sealed under the signatures of GSCSC
officer present and of the flour mill owner. One part of the
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sample should be tested by an independent agency. If any
deficiency is found in the sample upon testing it or if any
beneficiary suffers on account of the quality of atta supplied
to him, the responsibility should be fixed both on the officer
concerned and on the flour mill owner.
6.
Fortified atta produced should be fine, of highest quality and
containing proper proportion of nutrients.
7.
Wheat bags leaving the FCI should be bar-coded and when
these are delivered at the flour mill, bar-coding should be
checked by the officer of the GSCSC present at the mill and
certify receipt of proper quantity and good quality of the
wheat.
8.
After the bags of fortified atta are sealed/stitched, these are
to be transported to GSCSC godowns where the bags should
be counted and the bags should be certified to have been
received in proper condition by the officer of the GSCSC.
9.
It should be the responsibility of the GSCSC to deliver the
fortified atta to the FPS. There should be door step delivery.
10.
GSCSC must ensure that atta bags are delivered at the FPS
within 5 days of its grinding.
11.
Atta supplied to the beneficiary should remain good for 30
days and as he is getting ration for 30 days therefore, the
last delivery of atta bags to FPS should be within 5 days from
the date of grinding as printed on the atta bag. The FPS
dealer must ensure that the atta bags are distributed to the
beneficiaries within 10 days of the receipt. Thus, the
beneficiary will get the supply of atta 30 days before the
expiry date. At the time of manufacturing of the bag itself, it
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must be ensured that the date of grinding being printed on
the bag corroborates with the actual date of grinding and
that a future date is not printed on the bags.
12.
If any of the atta bags are not lifted from FPS within 30
days of the production of the atta, FPS dealer, shall inform
the Mamlatdar and GSCSC godown concerned. In case of
failure to give such information, the FPS dealer will be liable
to be penalized. Thereafter those bags of atta shall be
withdrawn by the GSCSC from the FPS. FPS owner shall also
give information as to which ration card holder has not taken
delivery of his entitlement of atta bags.
13.
At the Public Hearings conducted during the Committee’s
visit, there were multiple complaints by the people on the
functioning of PDS. The meetings were well attended and
the
complaints
were
as
regards
FPS,
Civil
Supplies
Department and GSCSC. One of the grievances at the Public
Hearings was there is no forum to address and redress
grievances with regard to the functioning of the PDS. Thus it
is recommended that a PDS Lok Adalat be held in every
district every second month, on a fixed date, time and venue
to be presided over by a Judicial Officer immediately below
the rank of the Principle District and Session Judge of the
District. The PDS Lok Adalat should be attended by District
Magistrate, the DSO of the district and the higher officials of
GSCSC. All complaints and grievances should be noted and
redressed and made note of in the next meeting.
14.
There should be a separate mechanism for dealing with the
complaints of the consumers who are beneficiaries under
PDS. For this purpose a toll free helpline be provided. The
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number of the helpline should be prominently displayed at
the FPS. Helpline number should be stamped on the ration
card. The aggrieved person should be able to follow up his
complaint and must be told of the action taken on his
complaint.
Other details regarding working hours, closing
days, number of ration cards attached with the FPS should
be mentioned
on a signboard outside the shop. The
entitlement of the beneficiaries and the price of the
commodities being sold should also be stamped on the ration
card.
15.
To deal with the complaints and to ensure the proper
functioning of PDS in the State, there should be an
Ombudsman.
16.
It is not possible to recommend any increase in the
commission payable to FPS. According to the Committee,
stand alone FPS is not feasible and it only results in loss. The
Committee finds it heartening that in Gujarat, the concept of
Model FPS has been developed and steps have been taken to
convert all FPS into Model FPS.
17.
Enforcement in PDS has to be strengthened when it is a
known fact that PDS is a corrupt institution and there is web
of corruption woven around the FPS which involves its
dealer, officials of Civil Supplies department and GSCSC and
the transporters. There has to be a separate department for
the purpose. Flying squads should also be constituted to
check the menace of black marketing of PDS food stuff.
18.
The Vigilance Committees have been constituted at various
levels as per government circulars. However in practice these
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Committees are non functional. Vigilance should be given
utmost importance. The Vigilance Committee must meet
every month on a fixed day, time and venue. The minutes of
the meeting should be recorded and necessary action be
taken thereon. Non official members should be provided
certain honorarium. If any non official member does not
attend two consecutive meetings, his name should be
removed from the Committee. If any official does not attend
this meeting, departmental action should be taken against
him.
19.
Another aspect of the Vigilance Committees that was
observed was that the Mamlatdar has been assigned
important functions with regard to the functioning of the
Vigilance Committees. In fact, at the Taluka level, the
Mamlatdar has been made the Chairman of the Taluka
Vigilance Committee. There are two objections to this. First,
the Mamlatdar does not perform PDS specific duties and
already has numerous functions and inspections targets to
meet. It was observed that the Mamlatdars are not being
able to meet with the demands of these administrative duties
itself.
Assigning
them
the
supervision
of
Vigilance
Committees is an added responsibility which will be seldom
fulfilled and thus should be avoided. Secondly, the functions
of Vigilance Committees include keeping a vigil on the fact
that the Mamlatdar takes action on errant FPS dealers. In
fact, one of the mandates of the Mamlatdars and the DSO is
to stay in touch with the members of the Vigilance
Committees during their inspections and initiate action to
redress complaints highlighted by the members of the
Vigilance Committee. In such a situation, the Mamlatdar
becomes a judge of his own cause. Thus it is recommended
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that the Vigilance Committees must be constituted in such a
way that they can function as independent bodies.
20.
An amnesty scheme should be put into operation to weed
out bogus/ ghost ration cards as these cards result in
diversion of PDS food grain to black market. If any bogus /
ghost card is found after the amnesty, not only action be
taken against FPS dealer but also against officers of the
department who certified issuance of these bogus/ ghost
ration cards.
21.
FPS is meant for the beneficiaries and a licence for running
FPS should be allotted on that basis. A person of the locality
having a kirana/grocery shop should be preferred. It should
be the condition of the licence that the licencee should have
kirana/grocery shop along with FPS for selling non PDS
items. Any breach of the conditions of licence should result in
revocation of the licence. Ration cards attached to each FPS
should be properly rationalised so that there is equal
distribution of these cards.
22.
Survey of BPL households should be taken immediately and
there should be no error of inclusion and exclusion. There
should be an yearly review of BPL and AAY families for
purposes of deletion of ineligible families and inclusion of
eligible families.
23.
There has been computerization of PDS in the State, done
with the help of National Information Center with the object
of issuing “Smart PDS”, but for the present this has been
kept on hold in view of the Unique ID Number project.
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24.
It was observed that at the time of allocation of grain at the
Zonal Office/ Mamlatdar office, the Sale and Stock Registers
of the FPS dealer is not verified. The monthly allocation of
food grain is made to the dealer only on the basis of what he
has demanded and on the basis of the availability of food
grain. There must be a provision for the concerned officers
to verify the sale and stock of the previous month before
issuing food grain to the dealers.
25.
The Committee observed during its visit that beneficiaries of
APL 1 category are not getting their due entitlement of food
grain. In fact none of the APL-1 beneficiaries that the
Committee spoke to were even aware of the fact that they
are entitled to food grain. They were only aware of their
Kerosene entitlement. However, most FPS dealers were
found to be taking a monthly allocation for APL 1 card
holders. It is clear that this allocation is being misused. Thus
a widespread awareness has to be created amongst the APL1 beneficiaries with regard to their food grain entitlement.
Allocation of APL-1 food grain has to be monitored strictly.
26.
Panchayat / Municipal body should be informed about the
stock received at the FPS by sending a copy of allocation
order and the same should be displayed at prominent places
of the Panchayat.
27.
A system should be evolved wherein there is a check on the
quantity and quality of the food grain that reached the FPS
for distribution. It must be ensured that the beneficiaries
receive full quantity as per their entitlement. It must also be
ensured that the quality of food grain reached the
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beneficiaries is the same as that has been disbursed by the
GSCSC.
28.
The Stock Patra submitted by FPS dealers should be certified
by the members of the Vigilance Committee to the fact that
stock mentioned to be distributed was properly distributed to
the beneficiaries and was not diverted.
29.
State Government may examine the supply of atta in
vacuum packed bags considering the advantages of vacuum
packing
30.
Appeal under the provision of the PDS Control Order 2001
should be heard by Judicial Officer of the rank of Additional
district Judge. State government should appoint such an
officer in consultation of the High Court.
31.
Prosecution should be initiated for contravention of the PDS
control order under Section 7 of the Essential Commodities
Act. Fast Track courts should be designated for the purpose.
32.
There must be strict monitoring of the PDS at all levels.
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