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CHAPTER 1

INTRODUCTION

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1.1 PUBLIC DISTRIBUTION SYSTEM OVER VIEW
The Public Distribution System has a great role in our economy. It was
established by Government of India under ministry of consumers’ affairs, food and
public distribution. It is managed jointly by state and government of central India.
Public Distribution System(PDS) is also known as ration shop. The function of PDS
is to distribute subsidized food items and non food items to the poor people. To buy
these items through PDS the people must have a ration card. The items distributed
under PDS are kerosene and food grains such as rice, wheat, sugar etc... Consumers
get food grains at reasonable and fair price i.e. price lower than market price through
these ration shops. It is one of the important food security systems in India.

Recently there are many changes introduced in public distribution system


inorder to ensure transparent functioning of PDS and food security. These changes
includes installation of E-POS machines in all ration shops is fast progressing as a
part of the National Food Security Act, linking Aadhar with the ration card of every
card holders, issues colour coded ration card to different categories of consumers,
introduce portability scheme and sending messages to consumers through mobile
phone.

Now the sale of ration articles across Kerala is completely in digital form
with the Food and Civil Supplies Department deploying E-POS machines in all the
14374 ration shops in the state. The Department of Civil Supplies completed the task
of installation of E –POS machines across all retail ration outlets after connecting
the 3.41 crore ration beneficiaries in the state with the ration card management
system utilising the Aadhar data base. Once this process was completed, all ration
card holders in the state would be linked to the ration card management system,
ensuring total monitoring of the ration distribution system in the state.

Public Distribution System is an Indian food security system. This system


ensures food security to all people on a reasonable price. It aims to reduce the
poverty among poor people and also to make a balanced growth in the economy. In
our state, Kerala Government is the controller and regulator of PDS. As a part of the
PDS renovation the entire functioning of the system are changed. Which has a big
impact on consumers.

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.1.2 STATEMENT OF THE PROBLEM

The PDS is a rationing mechanism that entitles households to get selected


commodities at subsidized prices. Eligible households are given a ration card that
entitles then to buy fixed rations (varying with household size and house
composition) or selected commodities. As per the new scheme the ration cards are
available in four different colours and has issued to different categories of
consumers. The recent changes introduced in ration shop is help to issue ration to
the genuine card holders across the counter. It also helps to make the entire PDS
system error free and corruption free. It prevent the diversion of PDS stocks which
is the greater merit of the new scheme.

Now a days, ordinary people in rural area depend heavily on PDS. To certain
extent PDS helps to bridge the gap between have and have not. Therefore it is an
attempt to examine the perception of beneficiaries on the new changes introduced in
PDS. It is also an attempt to study the effectiveness of the new rules.

1.3 RESEARCH QUESTION

1. What are the changes introduced in ration shop?


2. What are the perceptions of the consumers of PDS towards the changes introduced
in ration shop?
3. Whether the new scheme is beneficial to consumers?
4. What are the main factors that affecting the changes introduced in ration shop?
5. What are the problems being faced by consumers in PDS regarding the changes?

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1.4 OBJECTIVES OF THE STUDY

The study is based on the following objectives:-

 To know the changes introduced in ration shop.


 To understand the perception of consumers towards the changes introduced in ration
shop.
 To analyse the benefits of changes to the consumers.
 To identify the factors affecting the changes in ration shop.
 To examine the difficulties faced by the beneficiaries due to the introduction of
changes in ration shop.

1.5 HYPOTHESES OF THE STUDY

Ho: There is no significant relationship between changes introduced in PDS and


problems of the change.

Ho: There is no significant difference between education of the consumers and


perception of the consumers towards the changes in PDS.

Ho: There is no significant relationship between the benefits associated with the
changes in PDS and satisfaction regarding the changes.

Ho: There is no significant relationship between the factors influencing changes in


PDS and benefits associated with the changes.

Ho: There is no significant difference between gender and the problems of changes
introduced in ration shop.

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1.6 SIGNIFICANCE OF THE STUDY
The programme is running under thecontrol ofGovernment to eliminate
poverty and to ensure food security and there of make a balanced economy. But it is
not out of criticisms especially in its functioning. In this fast moving techno based
world, the changes introduced in PDS are necessary. This study will enable to get a
clear picture about the perception of consumers towards the changes introduced in
ration shops and the factors that influence the perception of consumers

1.7 SCOPE OF THE STUDY

The scope of the study is limited to Tirur municipality. This study focuses the
perception of consumers towards the changes introduced in ration shop. Today most
of the households are depends on PDS. So the relevant changes in PDS made a big
impact among them. Therefore the study has a wide scope in this context.

1.8 RESEARCH METHODOLOGY

Research methodology is the specific procedures or techniques used to


identify, select, process and analyze information about a topic. It is a systematic way
to solve problems. In other words, it is a branch of logic that deals with the general
principles of the formation of knowledge. Thus research methodology is a set of
working methods.

1.8.1 RESEARSH DESIGN

Research design is the blue print for the study. It is basic framework which
provide guidelines for the rest of the research process. The research strategy
employed for this study is the survey strategy which allows an efficient way to
gather the needed information from the population of the study. Survey strategy uses
questionnaire to collecting the data and this study then uses quantitative approach in
analyzing the data. The target population under this study is ration shop consumers
in Tirur area.

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1.8.2 SAMPLING DESIGN

a) TECHNIQUE OF SAMPLING
Random sampling method is used for the research study. The samples are taken
from the consumers of Tirur municipality. A detailed questionnaire is prepared and
administered among the selected samples.

b) SAMPLE SIZE
The number of samples covered under this study is 100 consumers of PDS in
Tirur municipality.

1.8.3 SOURCE OF DATA


The study is conducted by using primary data and secondary data.

a) PRIMARY DATA
The study mainly used primary data for drawing inferences. Primary data were
collected using structured questionnaire from the PDS consumers in Tirur
municipality.

b) SECONDARY DATA
For this study, the secondary data were collected from internet, journals and other
publications.

1.8.4 AREA OF THE STUDY


Tirur municipality of Malappuram district is selected for the purpose of the study.

1.8.5 PERIOD OF THE STUDY


The study is conducted for a period of 21 days from first week of April.

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1.8.6 INSTRUMENTS USED FOR DATA COLLECTION
Data required for the study was collected through structured questionnaire.
The questionnaire was administered among the sample population of Tirur locality.

1.8.7 TOOLS FOR ANALYSIS

The data will be analyzed using various mathematical and statistical tools. The
relationship between the variables will be analyzed using computer software like SPSS.
The statistical package for social scientists (SPSS-X1) was used to process the data.
Relevant statistical tools and techniques such as correlation, t-test and one way ANOVA
are used for analyzing and interpreting the collected data.

 Correlation Analysis
Correlation is a statistical tool which studies the relationship between two variables.
 t-test
The t- test is any statistical hypothesis test which is most commonly applied when
the test statistic would follow a normal distribution if the values of a scaling term in
the test statistics were known.
 ANOVA(Analysis of Variance)
ANOVA is a statistical technique that is used to check if the means of two or more
groups are significantly different from each other. ANOVA check the impact of one
or more factors by comparing the means of different samples.

1.9 LIMITATIONS OF THE STUDY


The study has the following limitations:
 Consumers perceptions and opinions are supposed to change from time to time.
 Some respondents are refused to disclose the fact due to lack of time and interest.
 There may be errors due to bias of respondents.

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1.10 CHAPTER SCHEMING
This study has been structured in the following manner:
Chapter 1. Introduction
Chapter 2. Review of Literature
Chapter 3. Theoretical Framework
Chapter 4. Data Analysis and Interpretation
Chapter 5. Findings, Suggestions and Conclusion

Chapter 1 INTRODUCTION
This section includes discussions concerning the practical and theoretical
importance of the topic as well as a description of the research problem. And also
highlight over the objectives, scope of study, research methodology, sources of data,
tools and techniques, period and limitations of study.

Chapter 2 REVIEW OF LITERATURE


It deals with the review of the related literature describes and analyzes the published
studies that are directly related to, and have some relevance to, the topic and
research questions at hand.

Chapter 3 THEORETICAL CONCEPT


It highlights the theoretical concept ad framework of the topic. This chapter provides
available data from published sources regarding the PDS.

Chapter 4 DATA ANALYSIS AND INTERPRETATION


It deals with the statistical techniques that were applied to the data analysis and the
results of each analysis summarized, tabulated, and then discussed. For each
research hypothesis, the statistical test of significance selected and applied to the
data is briefly described, followed by a statement indicating whether the hypothesis
was supported or not supported. Tables and figures are used to present analysis
results.

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CHAPTER 2

REVIEW OF LITERATURE

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Review of literature provides a critical summary of research already done
on the relevant topic. It provides readers with a quick overview of the problem
addressed, stress the need for the new study, and the demonstrates how it will
contribute to existing evidence. Review of literature is conducted to generate
theoretical and scientific knowledge about a particular phenomenon and results in a
synthesis of what is known and unknown about that phenomenon. The primary
purpose of literature is to gain a broad background available related to problems in
conducting research. Thus it facilitates selecting a problem and its purpose,
developing a framework and formulating a lesion plan. In brief, review of relevant
literature is an analysis and synthesis of research source to generate a picture of what
is known about a particular situation and to expose the knowledge gaps that exist in
the situation.

In the last 50 years of existence of the PDS, various studies have been
made by both officials and academicians and large volume of literature has grown
around the same. Articles have appeared in a number of journals throughout the
period examining and commencing upon the different facets of the system. Many
research projects have been undertaken on PDS in India. Important studies are
presented here.

Agro-Economic Research Centre (AERC-I3 (1957) Madras, has examined the


impact of Government's food control measures on the agrarian economy of the
erstwhile-Madras Presidency for the period 1938 to 1953. In general, it perceived
the food control measures as "necessary evils" and the rationing of food as a positive
service, especially when food availability remained very low and food prices rules
very high.

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Agro-Economic Research Centre, (1965) Madras, has examined the actual
working of the Fair Price Shops in the Southern Region, covering the three States of
Tamil Nadu, Kerala and Andhra Pradesh. The study could not identify the really
poor among the consumer households since income statements were not available. It
was found that the open market prices could not be brought down by Fair Price
Shops operations as at the Fair Price Shops supplies of food grains were only
limited.

Uma and Leles (1973) in the study pointed out the significance of the relationship
between the private trading activities and the Government's food policies. It
confirmed that the grain trade in India operated efficiently within the technological
and policy confines. It concluded that if Government's policies could be made to
facilitate investment in the new storage and transport sectors and could be made to
encourage technological improvement, the traditional market structure will be able
to function economically andstill more efficiently. This study did not examine the
question of how to solve the food problem of the weaker sections under the free
market system, given the real problem of extreme economic inequality in the
society.

Ramamurthy (1974) in his study, he examined the levels of poverty and destitution
in Tamil Nadu vis-a-vis the trends in the production and distribution of wage goods
(cereals, pulses, sugar, tea and cotton) for the period 1960-61 to 1970-71.
Ramamurthy emphasized the significant role that the Public Distribution System
could play in the eradication of poverty and destitution in Tamil Nadu after
establishing that the Public Distribution System is superior to all other anti-poverty
measures.

Rajapurohit (1978) in his study, he stated the segments of the population who
consumed less than thestate average quantity of cereals were treated as the target
group. The study suggested the exchange of superior cereals like Rice and Wheat
with coarse cereals like Jowar, Ragi andBajra through open market operation and
distribution of coarse grains through the Public Distribution System.

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AmartyaSens (1982) in his study, he concentrated on the three serious conflicts
encountered (or battlespersistently waged) by the Economically Vulnerable Sections
even during the non-famine situations. Sen remarked thus "India's so-called self-
sufficiency in food goes hand in hand with a quarter-perhaps a third of the rural
population as persistent losers in food battles, suffering from regular hunger and
systematic malnourishment.

Indian Institute of Public Administration (1987) in its study presented a "Status


Report" on the PublicDistribution System in India, covering the period upto 1986-
87. The papers of BhabatoshDatta, Kamal NayanKabraand Anil ChandyIttyerah and
of Barbara Hams discussed the problems and issues of the Public Distribution
System and offered certain alternative strategies to be adopted for achieving the
maximum effectiveness of the Public Distribution System.

Ittyerah and Kabra (1990) in their study, they analyzed the utilization of and
access to the PublicDistribution System in India. They found the utilization index
for rice was very low and that for sugar was very high. According to them about 80
per cent of the sample households were generally satisfied with the Public
Distribution System while 20 per cent were not.

Singh (1991) in his study, he analyzed the Public Distribution System in Bihar. He
stated a number ofserious deficiencies in the system. He prescribed a package of 27
measures to improve the working of the system. He emphasized the important
contribution of the Public Distribution System towards poverty alleviation in rural
areas.

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Government of India (1992 1993) indicated that, the several weaknesses emerged
in the publicdistribution system which diluted the essence of the system to benefit
the vulnerable section. The financial liabilities of the state government in
maintaining this system have increased. Leakage and black marketing in PDS items
have also increased the full impact of PDS in containing inflation. Government of
India (1992 1993) reported that the PDS as a social safety net has to be understood
in the sense of this limited perspective. The perspective as announced by the
government of India is that essential commodities such as rice, wheat, imported
edible oils, sugar and kerosene are distributed at prices below the market prices
through a network of fair price shops. The government accepts this as an essential
element of governments’ safety net for the poor.

Geetha, and Suryanarayan, (1993) in their study, they have reviewed the
objectives of food policypursued in different, five year plans. They examined
interstate PDS disparities, and their implications for the current ongoing PDS
reform. Their study confirms the general impression that there have been significant
disparities in the state wise PDS quantities, be it with respect to total population or
population covered by the PDS. This is largely in conformity with the objects of
global coverage as enunciated in the sixth plan. Part of the reason seems to be the
lack of proper infrastructure for the PDS in some states and hence their inability to
lift their allotted quota, by the Centre. Thus PDS revamping is not merely a question
of targeting but also involves the creation of the necessary infrastructure.

Government of India in the tenth plan (1995) the document admits that there is
overflowing stock offood grains in the country. This means that the distribution of
food grains is not managed properly and the areas of food shortage are still unable to
receive support from the Government overflowing stocks.

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Rao (1995) says "the persistent weaknesses observed in FCI operations are a clear
symptom of over-centralization. While efforts to tone up the personnel and working
of the corporation need to be undertaken, the more fundamental task is to reorganize
the food security system itself on a decentralized basis. In the event of such
reorganization, FCI with its specialized experience and expertise would be in a
position to play a major supporting role to help the decentralized food security
system to become operational.

Indrakanth (2000) using data collected in 1994-95 in five villages in Andhra


Pradesh with diverse socioeconomic characteristics, shows that in several cases
households that were to a ration card did not have one. Instead, contrary to what
seems to happen in other Indian states, in the selected villages complains about low
quality of PDS supplies were not frequent.

ReetikaKhera [2001]in her work entitled “India’s public Distribution system:


utilization and Impact”,studied the effectiveness of India’s public distribution
system (PDS) as a food security intervention, using field survey data collected by
the author in Rajasthan, utilization is low, and many households purchase wheat
from the market at higher prices before exhausting PDS quotas.

Jena.A.C. [2002] in the study of “Public Distribution System Impact, status and
Future Programmes”.He argues that PDS is a still an essential requirement in India,
given that the 30% of the population is still living below the poverty line and
another 20% needs support so as not to go below the poverty line and not become
food insecure. The PDS is also required at the time of disasters and natural
calamities. In addition to this, while the country has been witnessing huge stocks of
food grains on the one hand the food security has remained a far cry for the large
number of people of the country on the other hand

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Planning Commission (2005) concluded that the estimated 4.6 million tons of
TPDS grains purchasedby poor households – with and without BPL or AAY ration
cards corresponds to 15.5% of the total off-take of TPDS grains (29.65 million tons).
This means that for each kg of subsidized grains bought by the poor, the off-take
from theCentral pool was 6.4 kg. This estimate is considerably higher than the 2.4
kg estimate for 2003-04.

Ranjana Singh (2010) in his paper on “Impact of the Public Distribution System on
Poverty and FoodSecurity” opined that there is need to shift from the exiting
expensive inefficient and corruption ridden institutional arrangements to those that
will ensure cheap delivery of requisite quality grains in a transparent manner and are
self-targeting.

Chandra Kant Singh and Rakesh Kumar Singh (2010) in the study of “Role of
Public DistributionSystem in Food Security” observed that there is need to amend
law to ban controls and restrictions on trade between states. There should be free
movement of all kinds of commodities including agricultural produce.

RatanLalBasu (2011) in the study of “Public Distribution System in India and Food
Security” observedthat the basic causes of food security in India lie not in supply
failure but in declining income and employment intheunorganized sector and failure
of the TPDS that excludes a large segment of the poor because of definitions and
methods of implementation. So far as policy of introducing the TPDS is concerned,
it may be said that the policy as such is not unsound but the real problem lies in the
way it is implemented.

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Anju Singh, Kalanand Singh and Asha Dubey (2011) in their study on
“Management of PublicDistribution System in India – An Arrangement for Food
Security” observed that 70 Per cent of people living in village’s and40 Per cent of
landless labourers, beside this 20 crores of the poor people are rural agricultural
labourers. Food problems can be solved by the integration of the PDS with other
anti-poverty programme like Antyodaya and other programmes. The public
distribution system is a vital programme to ensure distributive justice to the weaker
sections of the community. Lastly, it maybe quote the line of Mother Theresa, “if we
have no peace, it is because we have forgotten that we belong to each other”.

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CHAPTER 3
THEORETICAL FRAMEWORK

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PDS: Concept and Definition

PDS can be distinguished from the private distribution in terms of control


exercised by public authority and the motive predominantly being social welfare in
contrast to private gain. Broadly, the system includes all the agencies that are
involved from procurement stage to the final delivery of goods to the consumer. The
agency that is involved in the process of procurement, transportation, storage and
distribution are Food Corporation of India (FCI). At the state level it is the civil
supply departments/corporations and the fair price shops, which are the agencies,
involved in the PDS. The fair price shops are the last link in this process, which are
mostly owned by the private individuals. Hence, the most important aspect that
distinguishes PDS is the involvement of government agencies and government
control over the entire distribution system.

1. In the narrow sense, PDS is identified with fair price shops. According to Dholakia
and Khurana, PDS is “a retailing system supervised and guided by the state”.
2. Progress Evaluation Organisation (Government of India 1985) defined as “a setup
under which specified commodities of everyday use are procured and made
available to consumers through a network of FPS in urban as well as in rural areas”.
3. Procurement of cereals is undertaken by FCI on behalf of central government. Some
state government agencies also procure grain for the central pool as well as for their
own account. Allocation to definite state is made by the central government. The
state level civil supply organisations undertake the responsibility of allotment to FPS
and supervising the functioning of FPS. FPS is subject to government control. FPS’s
are not allowed to sell other than government supplied essential commodities.
Specified quantities are allotted to each FPS depending upon the number of ration
cards attached to the FPS. The prices of these commodities are fixed by the
government. The FPS dealer has to procure a license to operate ration shop and
required to maintain proper records, accounting to the stocks lifted by the dealer.

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Features of PDS

The essential features of PDS can be summarized as follows:

1. It is the system of distribution of selected essential commodities through the fair


price shops which are operated by private dealers under the government’s control
and direction.

2. Rice, wheat, sugar have continued to occupy a predominant position throughout


the period. The other items are kerosene, edible oil etc.

3. The working of PDS did not in any way hinder the functioning of the free market
mechanism except in the limited statutory rationing areas but works along with it.

4 . The required amount of food grains and other items are obtained by the
government through imports and a buffer stock is maintained with a view to meet
scarcity situations.

5. The aim is to provide at least a basic minimum quantity of essential items at


reasonable prices especially to the weaker sections of population and also stabilize
their open market prices or at least to prevent an undue rise in such prices under
conditions of shortage. The prices charged are usually lower than open market prices
and also lower than the procurement and other cost incurred by the government.

6. It is been primarily an urban oriented system. Its genesis as well as growth has
been in those sensitive areas where a shortage of food grains and other essential
commodities could become political liabilities of government.

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Goals of PDS

The goal of PDS does not restrict itself with the distribution of Rationed articles.
Making available adequate quantities of essential articles at all times, in places
accessible to all, at prices affordable to all and protection of the weaker section of
the population from the vicious spiral of rising prices is the broad spectrum of PDS.
More specifically, the goals of PDS are:

 Make goods available to consumers, especially the disadvantaged/Vulnerable


sections of the society at fair prices.
 Rectify the existing imbalances between the supply and demand for consumer
goods; Check and prevent hoarding and black marketing inessential commodities.
 Ensure social justice in distribution of basic necessities of life.
 Even out fluctuations in prices and availability of mass consumption goods.
 Support poverty-alleviation programmes, particularly rural employment
programmes (SGRY/SGSY/IRDP/ mid-day meals, ICDS, DWCRA, SHGs and Food
for Work and educational feeding programmes).

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Evolution of Public Distribution System

The PDS, as it is known in India, has evolved over a long time. Famines and
droughts causing acute scarcity conditions and the measures taken by the
government to help the victims has been the typical way in which the food security
system began to take shape. Thus, the measures have been in the nature of the fire-
fighting operation “concerned only with putting out the flames and providing a
modest measure of temporary relief to the affected population. An effort of this sort
was taken up for the first time in 1939 under the British regime when the Second
World War started. The government thought of distributing the food grains to the
poor of some selected cities, which were facing severe scarcity conditions, and also
situations – where private, failed to provide commodities affordable by the poor.
Later in 1943, after the great Bengal famine, this distribution system was extended
to some more cities and towns. Prolonged periods of economic stress and disruption
like wars and famines gave rise to a form of food security system. Initially it
concerned itself primarily with management of scarce food supplies, and
subsequently found it necessary to use a more organized and institutionalized
approach including measures suspending normal activities of market and trade. This
form of providing food security existed in India for long years, in the shape of
statutory rationing in selected urban areas and continues to be present even today in
few urban centers. The growth of PDS in India can be grouped into three time
periods.

These are i) from 1939 to 1965 (ii) from 1965 to 1975 and (iii) from
1975 onwards. In the first period, i.e. up to mid-sixties, the PDS was seen as a mere
rationing system to distribute the scarce commodities and later it was seen as a Fair
Price System in comparison with the private trade. Rice and Wheat occupied a very
high share in the food grains distribution. Need for extending the PDS to rural areas
was realized but not implemented. The operation of PDS was irregular and
dependent on imports of PL480 food grains with little internal procurement. In
effect, imports constituted major proportion in the supplies for PDS during this
period. Procurement price offered were not remunerative. By the mid 60’s it was
decided to look much beyond management of scarce supplies in critical situations.
Stoppage of PL480 imports forced the government to procure grains internally. In

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effect, India took a quantum leap in the direction of providing a more sustainable
institutional frame work for providing food security.

The setting of FCI and Agricultural Prices Commission (APC) now


known as Bureau of Agricultural Costs and Prices (BACP). Commission in 1965
marked the beginning of this phase. On the basis of BACP’s recommended prices,
the FCI procures the food grains to distribute through the PDS and a part of the
procured quantity is kept as “buffer stock” to meet any unforeseen crisis situation.
The key components of this system were institutionalized arrangements and
procedures for procurement, stocking and distribution of food grains. What is more
important to food grains to note is that the food security system during this period,
evolved as an integral part of a developing strategy to bring about a striking
technological change in selected food crops, especially rice and wheat. It provide
effective price and market support for farmers and deployed a wide range of
measures to generate employment and income for the rural poor with a view to
improving their level of well- being including better physical and economic access
to food grains. In the third period, there was an increase in the food grains
production in the country. The buffer stock accumulation too increased heavily.
With this, initial emphasis on buffer stock maintenance and price stabilization shift
to increase in PDS supplies. In the fourth plan it states that “in so far as a food grains
our concerned the basic objective is to provide the effective PDS. The procured
quantities where in excess compared to the need, PDS meets and minimum reserve
was maintained. In fifth five year plan, programmes such as food for work,
Antyodaya etc...” where started with a view to alleviate poverty as well as to reduce
the over stocking of FCI god owns. The imports gradually declined in this period
and during the year 1975; there was a net export of food grains though it was a small
quantity. Imports were continued with relatively very less quantity to maintain level
of buffer stocks. The government strengthened the PDS in this period, so that it
remained a “stable and permanent feature of our strategy to control prices, reduce
fluctuations in them and achieve an equitable distribution of essential consumer
goods”

Till late 70’s the PDS was largely confined to urban population and did not
guarantee adequate food to the rural poor in times of crises. During the late 1970’s,

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and early 80’s some state governments extended the coverage of PDS to rural areas
and also introduced the target grouping approach. The states are Kerala Gujarat
Tamil Nadu and Andhra Pradesh. This was also because there was a marked change
in the food situation particularly in the later years, during 80’s and early 90’s. thus
the net availability of food grains which had increased from 74 million tons in 1968
to 99 million tones in1977, witnessed a rapid rise in later years reaching 158 million
tons in 1991(government of india1994). Thus while the PDS was started initially to
meet the crisis situation, by the sixth five year plan, the PDS was viewed “as an
instrument for efficient management of essential consumer goods” necessary for”
maintaining stable price consideration”.

Planning and PDS

The evolution of the PDS in the country also corresponded with the planning for
PDS and the changes in the perspectives of plans over a period of time.

From the beginning of first five tear plan 1951- 56 the need for PDS on a regular
basis for the country to provide help to the poor and to some extend for generating
downward pressure on crisis has been emphasized.

In the fourth five year plan 1969-74 the initial emphasis on buffer stock
maintenance and price stabilization was shifted to increase PDS supplies.

By fifth five year plan 1974-79 a major role for PDS was envisaged in
ensuring supplies of essential goods of mass consumption to people at reasonable
particularly to the weaker sections of the society.

During sixth five year plan 1980-85 PDS was expected to develop such
that it remains here after a stable and permanent feature of the strategy to control
price s, reduce fluctuations and achieve equitable distribution of essential consumer
goods.

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Seventh plan 1985-90 has specified that the PDS will be a permanent
feature of the strategy to control prices, reduce fluctuations and achieve equitable
distribution of essential consumer goods.

During eighth five year plan 1990-95 the supply of food grains through
PDS were increased by extending the coverage to more rural areas and use of food
grains for employment generation programmes, 14 like national rural employment
programme (NREP) and rural landless employment generating programmes
(RLEG). Subsequently these programmes were modified and combined into jawahar
rozgar yojana (JRY). The introduction of providing food security through generation
of employment and linking it to programmes of poverty alleviation has added yet
another dimensions to the policies.

Procurement of food grains from farmers

The food grains provided to beneficiaries under TPDS are procured from farmers at
MSP. The MSP is the price at which the FCI purchases the crop directly from
farmers; typically the MSP is higher than the market price. This is intended to
provide price support to farmers and incentive production. Currently procurement is
carried out in two ways: (i) centralized procurement, and (ii) decentralized
procurement. Centralized procurement is carried out by the FCI, where FCI buys
crops directly from farmers. Decentralized procurement is a central scheme under
which 10 states/Union Territories (UTs) procure food grains for the central pool at
MSP on behalf of FCI. The scheme was launched to encourage local procurement of
food grains and minimize expenditure incurred when transporting grains from
surplus todeficit states over long distances. These states directly store and distribute
the grains to beneficiaries in the state. Any surplus stock over the state’s requirement
must be handed over to FCI. In case of a shortfall in procurement against an
allocation made by the Centre, FCI meets the deficit out of the central pool.

The Centre procures and stores food grains to: (i) meet the prescribed minimum
buffer stock norms for food security, (ii) release food grains under TPDS on a
monthly basis, (iii) meet emergency situations arising out of unexpected crop
failures, natural disasters, etc., and (iv) sell through the Open Market Sale Scheme

24
(OMSS).10 The central government introduced the Open Market Sale Scheme
(OMSS) in 1993, to sell food grains in the open market; this was intended to
augment the supply of grains to moderate or stabilize open market prices.

Storage of food grains

Apart from the food grains requirement for immediate distribution under TPDS, the
central government maintains minimum buffer reserves of food stocks for
emergencies. The food grains procured for TPDS and other contingencies are
maintained and stored as the central pool stock. FCI is the main government agency
entrusted with the storage of food grains in the central pool. According to the
storage guidelines of the FCI, food grains are normally stored in covered god owns,
silos, and in the open, referred to as Covered and Plinth (CAP).11 However, FCI‟s
own storage capacity has been insufficient to accommodate the central pool stock of
food grains. As a result, FCI hires space from various agencies such as the central
and state warehousing corporations, state government agencies and private parties.
In an evaluation of the storage management of food grains by FCI, the Comptroller
and Auditor General (CAG) noted that there is sub-optimum utilisation of the
existing storage capacity available with FCI and states.10 CAP storage involves
storage on elevated plinths with polythene covers specially made for this distribution
to BPL, AA.Y and APL families.

Allocation of food grains to states

Allocation for BPL and AAY families is done on the basis of the number of
identified households. On the other hand, allocation for APL families is made on the
basis of: (i) the availability of food grains stocks in the central pool, and (ii) the past
off take (lifting) of food grains by a state from the central pool. Given the food
grains stocks in FCI, the Centre has the discretion to allocate more grains to states
on an ad-hoc basis. In the past, ad-hoc allocate the central government allocates food
grains from the central pool to the state governments for ones have been provided in
the event of floods, droughts, and festivals, etc.

25
Distribution of food grains to beneficiaries

The responsibility of distributing food grains is shared between the Centre and
states. The Centre, specifically FCI, is responsible for the inter-state transport of
food grains from procuring to consuming states, as well as delivering grains to the
state god owns. Once FCI transports grains to the state depots, distribution of food
grains to end consumers is the responsibility of state governments. Distribution of
food grains is as complex as the policy of procurement. It involves the following
decisions.

1. What quantity of food grains must be allocated to different states,

2. What should be the issue price?

3. What should be the distribution agency at the retail level and the allocation agency
at the retail level and the allocation agency at the different regional levels?

4. What should be the arrangements for transportation, storage, and coordination?

5. What should be the retail price and margins of different agencies?

The fixation of the total quota to be supplied to each states is determined by the
Central Government, keeping in view the production of food grains in the state and
the off – take in the previous months, prices for the consumer are determined by
taking into consideration, marketing costs, open market prices fiscal burden and the
paying capacity of the consumer.

26
Coverage of PDS in India

The PDS is a rationing mechanism that entitles households to specified of selected


commodities at subsidized prices. Eligible households are given a ration card that
entitles then to buy fixed rations (varying with household size and house
compositions) or selected commodities. The six essential commodities supplies
through the PDS nationally, are: rice wheat, sugar, edible oils, kerosene and coal.
Additional commodities like pulses, salt, tea are supplied selectively. The
commodities are made available through a network of fair price shops. In 1994,
there were around 0.42 million ration shops in the country. These shops were run by
private agents, cooperatives and few are state owned. An important feature of PDS
is that the responsibility for implementation, monitoring and for enforcement of
legal provisions relating to public delivery with the state government.

Since the mid 1980’s the coverage of PDS were extended to rural areas in some
states. Thus it acquired the status of welfare programme. An effort was made to
extend subsidized food grains in 1985 in all the tribal blocks covering about 57
million persons. The revamped PDS has been later expanded to cover 1752 blocks
with a high incidence of poverty covering 164 million persons.

New schemes introduced in ration shops

Following are the recent changes came under PDS


I. Installation of EPOS machine.
II. Linking Aadhar with ration card.
III. Introduce colour coded ration card.
IV. Launching ration card portability.
V. Messages through mobile phone.

27
I. Installation of EPOS (Electronic Point Of Sale) machine

Installation of EPOS in all ration shops is fast progressing as part of the


National Food Security Act to ensure transparent functioning of PDS. With this
people cannot buy ration using others ration cards. Presently, the dealers of the
remaining stock in the shops is being linked to the new system. As per the new
system the card holders will be correctly identified and the allotted quantity of
supply will be distributed. The consumers will be recognized by cross checking their
fingerprint in Aadhar using the biometric system in the machine. The name and
details of all the members of the card will be displayed on the screen, when the card
number is entered. As the finger is touched on the machine the ration supply allotted
for each card and its price also will be displayed and the bill will be printed.

II. Linking Aadhar with ration card

The Government of India has directed the citizens to link the Adhaarcard with
variousvital documents such as Ration card, Bank account details, PAN card, Voter
ID card and Mobile number. It has been made mandatory to ensure that the benefits
from all the Government schemes reach the people.

Benefits of linking Aadhar to ration card

Ration cards are the legal identity proof, used by many households to get the
food grains and fuel at a subsidized rate. The main objective is to avoid the issuance
of duplicate and multiple identities by digitizing it and also to streamline the benefits
attached to it.

28
Documents required for linking Aadhar to ration card

The following documents to be submitted while linking Aadhar to ration card:


 A copy of Aadhar cards of all family members along with the originals for
verification.
 A copy of Ration card.
 A copy of Bank pass book (if Aadhar not linked with the bank account).
 Passport size photographs.

III. Introduce colour coded ration card

A ration card is a Government of India issued document which acts as a proof for
citizen’s identity and residential address, and allows Indians to access subsidized
food and basic utility products. As an identity proof documents, it can be used to
procure other essential documents such as Driving license, Aadhar card and
Passport. It can be also used as a proof of residential address for the same.
However, the most important function of the Indian ration card is its ability to
help economically disadvantaged Indians to avail cheap essential products such as
rice, wheat, sugar and kerosene. It allows these individuals to access basic daily
needs through the public distribution system.

There are four types of new ration cards that are recognized by the
Government of India for easy identification. These cards are colour coded and offer
varying levels of benefits. They are,
1. The White or Honorary Ration card
2. The Blue Ration card
3. The Pink Ration card
4. The Antyodaya Anna Yojana card

29
A brief explanation of these cards are given below.

1. The White or Honorary Ration card


This card is issued to the families who are not economically disadvantaged, and do
not require subsidized products and services, For such families, the Ration card is
called a honorary card and is only used as a proof of identity and residential address.

2. The Blue Ration card


This card is issued to the households living above the poverty line. Special subsidies
are provided to these blue ration card holders.

3. The Pink Ration card

This card is issued to households living below the poverty line. This card allows
maximum benefits to the households.

4. Antyodaya Anna Yojana card

This card is issued to poorest families and those who do not have a stable source of
income and whose monthly income less than Rs.250. They can access highly
subsidized commodities, including 35 kg of rice at Rs.3 per kg.

Types of Ration cards are tabulated below

Ration card Beneficiaries Subsidy on food on commodities

Most economically backward 35 kg of food grains completely free


Yellow card
section of society of cost(Rice-4kg, Wheat-1kg).

5kg of food grains completely free


Pink card Below poverty line for each member of family(Rice-
4kg, Wheat-1kg).

Blue card Above poverty line 2kg Rice at Rs. 2 per person.

White card Non priority Rice-8.90kg, Wheat-6.70kg.

30
IV. Launching of Ration card portability

This is the another change introduced in PDS. Through the new feature of
portability, the card holders are now be able to get commodities from any of the fair
price shop within a particular district in the state.

Right now it is a need based scheme where the card holders can use the
facility until he/she get a new card issued in the new residential location after all the
administrative delays. The main benefits of introducing ration card portability
scheme are as follows.

 Consumers are able to buy commodities from nearest ration shop.


 It is easy to buy ration quota after having moved away from home.
 It helps to reduce transportation cost.
 Through this scheme households can get rations from the shop in their new location
using the old card.
 There is no urgent need to change ration card immediately.

31
CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

32
CONSUMER PERCEPTION TOWARDS THE CHANGES INTRODUCED IN
RATION SHOP

The result of the survey conducted as a part of the research study has been
presented and analyzed in this chapter. Analysis of data is most skilled task in the
research process. Analysis of data means studying the tabulated material in order to
determine inherent facts or meanings. In other words analysis means the
computation of certain indices or measure or coefficient alone with searching for
pattern of relationship that exists among data group.

Here the researcher used different tools in order to analyze the collected
data. It consist of,
 Frequency analysis
 Ranking
 Independent t test
 ANOVA
 Correlation

33
Classification of respondents on the basis of Gender

TABLE No. 4.1

Frequencies of Respondents with regard to gender

Gender Frequency Percentage

Male 52 52.0
Female 48 48.0
Total 100 100.0

CHART No.4.1
Frequencies of Respondents with regard to gender
120

100

80

60 Frequency
Percentage
40

20

0
Male Female Total

(Source: Primary Data)

Interpretation: Table 4.1 deals with the gender of the selected consumers of PDS.
It reveals that out of 100 total respondents, 52 respondents (52.0 percent) were male
and the remaining 48 respondents (48.0) were female. Hence majority of the
selected consumers of PDS were male.

34
Age profile of respondents

TABLE No. 4.2

Age wise classification of Respondents

Age Frequency Percentage

Below 30 39 39.0
Between 30-40 11 11.0
Between 40-50 17 17.0
Above 50 33 33.0
Total 100 100.0

CHART No. 4.2


Age wise classification of Respondents

120

100

80

60

40
Frequency
20
Percentage
0
Below 30 Between 30- Between 40- Above 50 Total
40 50

(Source: Primary Data)

Interpretation: Table 4.2 deals with the age of the selected consumers of PDS. The
result identified that out of 100 total respondents,39 respondents (39.0 percent)
belong to the age category of less than 30 years, 11 respondents (11.0 percent)
belong to the age category of 30-40 years, 17 respondents (17.0 percent) belong to
the age category of 40-50 years and the remaining 33 respondents (33.0 percent)
belong to the age category of above 50 years. Hence most of the selected consumers
of PDS belong to the age category of below 30 years.

35
Classification of respondents on the basis of marital status

TABLE No. 4.3


Frequencies of respondents with regard to Marital status

Marital Status Frequencies Percentage

Single 29 29.0
Married 53 53.0
Widow 13 13.0
Seperated 5 5.0
Total 100 100.0

CHART No. 4.3


Frequencies of respondents with regard to Marital status

Single
Married
Widow
Seperated
Total

(Source: Primary Data)


Interpretation: The marital status wise distribution of respondents are given in
Table No.4.3. It shows that 29% of the respondents are Single, 53% are Married,
13% are Widower and 5% are Seperated. Hence it is concluded that majority of the
consumers are married.

36
Respondents classification on the basis of educational qualification
TABLE No. 4.4
Frequencies of respondents with regard to educational qualification

Educational Qualification Frequencies Percentage

Illiterate 28 28.0
Up to 10th 37 37.0
Plus two 11 11.0
UG/PG 21 21.0
Others 3 3.0
Total 100 100.0

CHART No. 4.4


Frequencies of respondents with regard to educational
qualification
120

100

80

60 Frequencies
Percentage
40

20

0
Illiterate Up to 10th Plus two UG/PG Others Total

(Source: Primary Data)

Interpretation: Table No. 4.4 shows that 28% of the respondents are illiterate, 37%
are up to 10th, 11% are plus two, 21% are UG/PG and 3% are above the qualification
of post graduate.

37
Classification of respondents on the basis of occupation

TABLE No. 4.5

Frequencies of respondents with regard to occupational status

Occupational Status Frequency Percentage

Private Sector Employee 7 7.0


Govt. Employee 3 3.0
Business 5 5.0
Agriculture 12 12.0
Others 73 73.0
Total 100 100.0

CHART No. 4.5


Frequencies of respondents with regard to occupational status
80
70
60
50
40
Frequency
30
20 Percentage
10
0
Private Govt. Business Agriculture Others
Sector Employee
Employee

(Source: Primary Data)

Interpretation: The occupation wise distribution of sample respondent is given in


the Table No. 4.5. Which shows that7% of respondents are private sector employees,
3% are Govt employees, 5% are engaged in business, 12% are engaged in
agriculture and 73% are doing other jobs (Coolie).

38
Classification of respondents on the basis of category of PDS consumers

TABLE No. 4.6

Frequencies of respondents with regard to category of PDS consumers

Category Frequency Percentage


APL 26 26.0
BPL 47 47.0
AAY 21 21.0
Non priority 6 6.0
Total 100 100.0

CHART No. 4.6


Frequencies of respondents with regard to category of
PDS consumers
APL
100
80
60
40
Total BPL
20 Frequency
0
Percentage

Non priority AAY

(Source: Primary Data)

Interpretation: Table No. 4.6 deals with category of PDS consumers. Which
shows that 26% of the PDS consumers are APL category, 47% are BPL category,
21% are AAY category and 6% are non priority category. Hence it is concluded that
majority of consumers are included in BPL category.

39
Classification of respondents on the basis of average income in the last
financial year

TABLE No. 4.7

Frequencies of respondents with regard to average income in the last financial


year

Income Frequencies Percentage

Less than 10000 93 93.0


Between 10000-50000 7 7.0
Total 100 100.0

CHART No. 4.7


Frequencies of respondents with regard to average income
in the last financial year

100

50
Frequencies
0 Percentage
Less than
10000 Between
Total
10000-50000

(Source: Primary Data)


Interpretation: The income wise distribution are given in Table No. 4.7. It shows
that 93% of consumers are in the income category of less than 10000/ year and
remaining 7% are in the income category of between 10000 – 50000.

40
TABLE No. 4.8
Table showing ranking of awareness towards the functioning of PDS

Sl.No Statement Mean Rank


1 Have fair price shop in my village 4.3400 2
2 Fair shop in my village are functioning for a number 4.6100 1
of years
3 I know the availability of ration items in the shop at 4.2700 3
the right time

4 I get correct information about 4.1000 4


availability,quantity,and price of ration items in the
shop
5 Matters related with PDS is discussed in 2.4000 5
municipality meetings

(Source: Primary Data)


Interpretation: The table no.4.8 deals with awareness level of consumers towards
the functioning of PDS . In this table it is clear that the consumers mostly aware
about the FPS in their village are functioning for a number of years(4.6100) and the
awareness level of consumers too low in the matters related with PDS is discussed
in municipality meetings(2.4000).

TABLE No. 4.9

Table showing ranking of familiarity of consumers towards the changes


introduced in ration shop

Sl.No Statement Mean Rank


1 Linking Aadhar card with ration card 2.4800 4
2 Installation of EPOS machine 2.9300 1
3 Ration card portability 2.5300 3
4 Colour coded ration card 2.4200 5
5 Messages through mobile phone 2.6200 2

(Source: Primary Data)

41
Interpretation: The table no. 4.9 shows the familiarity of consumers towards the
changes introduced in ration shop. In this table it is clear that consumers mostly
familiar with installation of EPOS machine(2.9300), and leastly familiar with colour
coded ration card scheme introduced in ration shop(2.4200).

TABLE No.4.10
Table showing ranking of source of information required about the changes
introduced in ration shop

Sl.No Statement Mean Rank


1 Notice Board 3.1100 4
2 Friends and Relatives 4.5400 2
3 Ration Supplier 3.9100 3
4 News paper advertisement 4.9300 1

(Source: Primary Data)

Interpretation: Table no. 4.10 deals with source of information required about the
changes introduced in ration shop. In this table it is clear that the consumers mostly
get information from news paper advertisement(4.9300), and get information from
notice board is too low.

TABLE No. 4.11

Table showing ranking of satisfaction regarding the changes introduced in


ration shop

Sl.No Statement Mean Rank


1 Fingerprint scanning 4.3100 3
2 Ration card portability 4.8400 1
3 Linking Aadhar with ration card 3.9100 4

4 Colour coded ration card 4.5400 2

(Source: Primary Data)

42
Interpretation: Table No. 4.11 deals with the satisfaction of consumers regarding
the changes introduced in ration shop. In this table it is clear that consumers are
highly satisfied with the ration card portability scheme(4.8400), and consumers
satisfaction is rare in case of linking Aadhar with ration card(3.9100).

TABLE No. 4.12


Table showing ranking of perception of consumers towards changes
introduced in ration shop

Sl.No Statement Mean Rank


1 This new system is better than earliar 4.6900 3
2 It has a bad effect on card holders when 3.9700 4
the fingerprint is not match
3 Through this change Govt aims at the 4.8200 1
welfare of consumers who depends upon
PDS
4 New changes helps to reduce the 4.7100 2
limitations of ration shop

(Source: Primary Data)


Interpretation: The above table no. 4.12 deals with the perception of consumers
towards changes introduced in ration shop. It shows that the perception of
consumers is high in case of the changes aims at welfare of consumers(4.8200), and
the perception of consumers is very low in case it has bad effect on card holders
when the fingerprint is not match(3.9700).

43
TABLE No. 4.13

Table showing ranking of factors that influence the changes introduced in


ration shop

Sl.No Statement Mean Rank


1 Food security 4.7900 1
2 To get commodities to the genuine 4.7800 2
consumers
3 To prevent diversion of PDS stocks 4.6700 4
4 To make PDS error free and 4.4300 5
corruption free
5 To utilize all ration shop by all 4.6800 3
consumers with in the district

(Source: Primary Data)


Interpretation: Table no. 4.13 describes the factors that influence the changes
introduced in the ration shop. It shows food security is the number one factor that
influence the changes in PDS(4.7900), second factor is to get commodities to the
genuine consumers(4.7800), third factor is to utilize all ration shop by all consumers
with in the district(4.6800), fouth factor is to prevent divertion of PDS
stocks(4.6700) and the last factor is to make PDS error free and corruption
free(4.4300).

TABLE No. 4.14


Table showing ranking of benefit associated with the changes in PDS

Sl.No Statement Mean Rank


1 It ensure transparent function of PDS 4.4800 6
2 It does not promote black marketing 4.8100 2
3 Commodities can purchase from nearest ration shop 4.8800 1
4 Consumers get fairly priced bills on their purchase 4.4900 5
5 Only card holders can obtain ration quota 4.4300 7
6 Priority categories of card holders get many other benefits from 4.6400 4
Govt
7 Ration dealers supply all items prescribed by Govt 4.7800 3
(Source: Primary Data)

44
Interpretation: The above table no.4.14 deals with the benefit associated with the
changes in PDS. It shows that the important benefit of the changes introduced in
ration shop is commodities can purchase from nearest ration shop(4.8800) and less
important benefit is only card holders can obtain ration quota(4.4300).

TABLE No. 4.15


Table showing ranking of problems of new changes introduced in ration shop

Sl.No Statement Mean Rank


1 Server down 1.9600 3
2 Consumers are not interested to change into a new 2.5700 2
technology
3 Inorder to buy ration articles consumers should directly 1.8300 5
approch the ration shop
4 Time consuming 1.5600 6
5 In certain circumstances the fingerprint of the consumer 1.8800 4
does not match with the machine
6 It divert people to buy commodities from ration shop into 3.6700 1
grocery store

(Source: Primary Data)

Interpretation: The table no.4.15 deals with the problems of new changes
introduced in PDS. It shows that the major problem of the changes in PDS is it
divert people to buy commodities from ration shop into grocery store(3.6700) and as
per the opinion of consumers time consuming is not a big problem(1.5600).

45
TABLE No. 4.16
Table showing ranking of need for improvement in the changes introduced
in PDS

Sl.No Statement Mean Rank


1 Need more quality server 4.6700 1
2 Find a new way instead of scanning fingerprint 4.0200 4

3 Increase the awareness level of consumers 4.5500 2

4 Uptodate information should be published in the notice board 4.3500 3

(Source: Primary Data)

Interpretation: The table no.4.16 shows the need for improvement in the changes
introduced in PDS. It is clear that consumers mostly need more quality
server(4.6700) and there is less need to find a new way instead of scanning
fingerprint(4.0200).

46
TESTING OF HYPOTHESIS

Correlation Analysis

Ho: There is no significant relationship between changes introduced in PDS and


problems of the change.

TABLE No. 4.17


Test Result of Correlation Analysis showing the difference between changes
introduced in PDS and problems of the change

Totalchanges Totalproblems
Totalchanges Pearson Correlation 1 .387
Sig. (2-tailed) .000
N 100 100
Totalproblems Pearson Correlation .387** 1
Sig. (2-tailed) .000
N 100 100

** Correlation is significant at the 0.01 level (2-tailed).


(Source: Primary Data)

Interpretation: The correlation between total changes and total problems is r =


0.387 and significant value is 0.000. This indicate that changes introduced in PDS
and problems are positively correlated (r = 0.387). Hence we can reject the null
hypothesis ie, there is significant relationship between changes introduced in PDS
and problems of the change.

47
One way ANOVA test
Ho: There is no significant difference between education of the consumers and
perception of the consumers towards the changes in PDS.

TABLE No. 4.18


Test Result of ANOVA showing no significant difference between education
and perception of consumers towards the changes in PDS

Sum of Squares df Mean Square F Sig.


Between 1.858 4 .464 2.356 .049
Groups
Within Groups 18.729 95 .197
Total 20.587 99

(Source: Primary Data)


Interpretation: ANOVA results reveals P value as 0.049 is less than 0.05. Hence
the null hypothesis is rejected. So there is significant difference between education
and perception of consumers towards the changes in PDS.

48
Correlation Analysis
Ho: There is no significant relationship between the benefit associated with the
changes in PDS and satisfaction of consumers regarding the changes.

TABLE No. 4.19


Test Result of Correlation Analysis showing the relationship between the
benefit and satisfaction of consumers regarding the changes introduced in
PDS

Totalbenefit Totalsatsfaction
Totalbenefit Pearson Correlation 1 .401
Sig. (2-tailed) .000
N 100 100
Totalsatsfaction Pearson Correlation .401** 1
Sig. (2-tailed) .000
N 100 100

** Correlation is significant at the 0.01 level (2-tailed).

(Source: Primary Data)


Interpretation: The correlation between total benefit and total satisfaction is
r = 0.401 and the significant value is 0.000. This indicate that benefit associated with
the changes in PDS and satisfaction of consumers regarding the changes are
positively correlated(r = 0.401). Hence we can reject the null hypothesis. ie, there is
significant relationship between the benefit associated with the changes in PDS and
satisfaction of consumers regarding the changes.

49
Correlation Analysis
Ho: There is no significant relationship between the factors that influence the
changes in PDS and benefit associated with the changes.

TABLE No. 4.20


Test Result of Correlation Analysis showing the relationship between the
factors that influence the changes in PDS and benefit associated with the
changes.

Totalfactor Totalbenefit
Totalfactor Pearson Correlation 1 .628
Sig. (2-tailed) .000
N 100 100
**
Totalbenefit Pearson Correlation .628 1
Sig. (2-tailed) .000
N 100 100
**. Correlation is significant at the 0.01 level (2-tailed).

(Source: Primary Data)


Interpretation: The correlation between total factor and total benefit is r = 0.628
and the significant value is 0.000. This indicate the factors that influence the
changes in PDS and benefit associated with the changes are positively correlated(r =
0.628). Hence we can reject the null hypothesis. ie, there is significant relationship
between the factors that influence the changes in PDS and benefit associated with
the changes.

50
Independent T test
Ho: There is no significant difference between gender and problems of changes
introduced in ration shop.

TABLE No. 4.21


Test Result of T test showing significant difference between gender and
problems of changes introduced in ration shop

Group Statistics

Gender N Mean Std. Deviation Std. Error Mean


Totalproble Male 52 2.1891 .29341 .04069
m Female 48 2.3056 .74244 .10716

Independent Samples Test


Levene's Test
for Equality of
Variances t-test for Equality of Means
Sig. 95% Confidence
(2- Mean Std. Error Interval of the
taile Differenc Differenc Difference
F Sig. t df d) e e Lower Upper
Totalpro Equal 14.707 .000 -1.046 98 .298 -.11645 .11129 -.33731 .10441
blem variances
assumed
Equal -1.016 60.372 .314 -.11645 .11463 -.34571 .11281
variances not
assumed
(Source: Primary Data)
Interpretation: Table no.4.21 reveals the result of independent ‘t’ test applied to
test the significant difference between gender and problems. Here the calculated P
value (0.000) and t value (14.707) shows that there is significant difference between
gender and problem, Since its P value is less than 0.05. Hence the null hypothesis is
rejected. There for it is concluded that there is significant difference between gender
and problems of changes introduced in ration shop.

51
CHAPTER 5
FINDINGS, SUGGESTIONS AND CONCLUSION

52
FINDINGS

The main findings of the study are as follows:


 The majority of the consumers of PDS are male consumers (52%).
 Most of the consumers of PDS belongs to the age category of below 30 years(39%).
 Majority of the consumers of PDS are married.
 The educational qualification of most of the consumers are up to 10th.
 73% f consumers are included in the category of others (coolie).
 A big portion of the consumers are BPL ration card holders.
 Average income of 93% consumers are less than 10000.
 The awareness level of consumers towards the functioning of PDS is differ in each
case.
 Consumers are highly familiar with the installation of EPOS machine in ration shop.
 Consumers get the information of changes introduced in PDS mostly from
newspaper report.
 Consumers are highly satisfied with the ration card portability scheme.
 Consumers perceived that , through the changes introduced in ration shop
Government aims at the welfare of consumers who depends upon PDS.
 Food security is the influencing factor to introduce changes in PDS.
 The important benefit associated with the changes is consumers can purchase
commodities from nearest ration shop.
 One of the problem arising from the changes is it often divert people to buy
commodities from ration shop into grocery store.
 Consumers need more quality server.
 It is found that there is significant relationship between changes introduced in PDS
and problems of the change.
 There is significant difference between education and perception of consumers
towards the changes in PDS.
 There is significant relationship between the benefit associated with the changes in
PDS and satisfaction of consumers regarding the changes.
 There is significant relationship between the factors that influence the changes in
PDS and benefit associated with the changes.
 There is significant difference between gender and problems of changes introduced
in ration shop.

53
SUGGESTIONS

The following recommendations are arrived from the opinion of the consumers
of ration shops in Tirur Municipality.

 Level of awareness towards the functioning of PDS among the respondents is almost
same. Inorder to increase their awareness it is better to conduct meetings related
with PDS in regular intervals as it is possible.

 All consumers are not familiar with all new changes introduced in ration shop. So it
is necessary to make familiar each and every consumers with the new schemes.

 The respondents get information on recent changes in the shop is mainly through
news paper advertisement. But most of the time it is not practical. So it is better to
ensure information availability on notice board of the ration shop and making
telephone calls.

 Level of satisfaction regarding the changes introduced in PDS is not same for all. It
is better to establish a high quality server for a speedy internet and find a new way
instead of scanning fingerprint.

 Time consuming is the main problem faced by the consumers. It can be reduced by
installing more than one EPOS machine in each ration shop.

54
CONCLUSION

India is a developing nation and second largest population in the


world. To ensure food security in India is an important function for the development
of the country. PDS in India is one of the largest welfare programmes in the world
with the primary aim of improving food and nutrition security of the socially and
economically deprived sections in the country. PDS is considered as principal
instrument in the hands of central and state government to providing safety net to the
poor against the spiraling rise of price of essential commodities. Ration shops are
grass root level functioning of the total public distribution system in India to ensure
food security. That is why the changes introduced in PDS is very essential.
This study shows the perception of consumers towards the changes
introduced in ration shop in Tirur municipality. The perception can be assessed
through the data collected from the municipal area. To conclude that with the
introduction of new changes the transparency of PDS is increased and fair
consumers get more benefit.

55
BIBLIOGRAPHY

56
REFERENCES

1. Agro-Economic Research Centre, (1965) Madras, The actual working of the Fair
Price Shops in the Southern Region, covering the three States of Tamil Nadu, Kerala
and Andhra Pradesh.

2. Uma and Leles (1973) , The significance of the relationship between the private
trading activities and the Government's food policies.

3. Ramamurthy (1974) , The levels of poverty and destitution in Tamil Nadu vis-a-vis
the trends in the production and distribution of wage goods (cereals, pulses, sugar,
tea and cotton) for the period 1960-61 to 1970-71.

4. Indian Institute of Public Administration (1987) ,"Status Report" on the Public


Distribution System in India, covering the period upto 1986-87.

5. Ittyerah and Kabra (1990), The utilization of and access to the Public Distribution
System in India
.
6. Geetha, and Suryanarayan, (1993), The objectives of food policy pursued in
different, five year plans.

7. ReetikaKhera (2001), “India’s public Distribution system: utilization and Impact”.

8. Jena.A.C. [2002] ,“Public Distribution System Impact, status and Future


Programmes”.

9. Ranjana Singh (2010), “Impact of the Public Distribution System on Poverty and
Food Security”

10. Anju Singh, Kalanand Singh and Asha Dubey (2011) ,“Management of Public
Distribution System in India – An Arrangement for Food Security”

57
BOOKS

 Soundarapandian M., “Economic Reforms and Public Distribution System”, Serials


Publications, New Delhi, 2002.

 Bapna S.L. “Food security through the PDS: The Indian Experience”, In Tyagi.

WEBSITES

www.shodhgangainflipnet.nic.in

www.scribd.com

www.wikipedia.com

58
ANNEXURE

59
QUESTIONNAIRE

I am SREEDEVI K, student of M.COM studying in THUNCHAN


MEMORIAL GOVT COLLEGE, TIRUR. As a part of my curriculum, I am doing a
project on “A STUDY ON CONSUMER PERCEPTION TOWARDS THE
CHANGES INTRODUCED IN RATION SHOP WITH SPECIAL
REFERENCE TO TIRUR MUNICIPALITY”. So may I please take some time
out of your schedule to fill this questionnaire. Information will be kept highly
confidential.

Kindly fill up the following information:


1. Name :

2. Gender : (a) Male (b) Female

3. Age : (a) Below 30 (b) Between 30-40


(c) Between 40-5 (d) Above 50

4. Marital Status : (a) Single (b) Married


(c) Widow (d) Seperated

5. Education : (a) Illiterate (b) Up to 10th


(c) Plus two (d) UG/PG

6. Occupational Status : (a) Private Sector Employee


(b) Govt. Employee
(c) Business
(d) Agriculture
(e) Others

7. Category : (a) APL (b) BPL


(c) AAY (d) Non priority

60
8. Average income in the last financial year :
(a) Less than 10000
(b) Between 10000 – 50000
(c) Between 50000 – 100000
(d) Above 100000

9. If yes, make your level of awareness towards the functioning of PDS in your
residential area. (VH= Very High, H= High, A= Average, L= Low, VL= Very
Low)

Sl.No Statement VH H A L VL
9.1 Have fair price shop in my village.
9.2 Fair price shop in my village are functioning for a
number of years.
9.3 I know the availability of ration items in the shop at
the right time.
9.4 I get correct information about availability, quantity,
and price of ration items in the shop.
9.5 Matters related with PDS is discussed in municipality
meetings.

10. Are you familiar with the new changes introduced in PDS?
(HF=Highly Familiar, NF=Not Familiar, PF=Partially Familiar)

Sl.No New changes HF NF PF


10.1 Linking Aadhar card with ration card.
10.2 Installation of EPOS machine.
10.3 Ration card portability.
10.4 Colour coded ration card
10.5 Messages through mobile phone.

61
11. From where did you get the information about the changes in PDS?
(VH= Very High, H= High, A= Average, L= Low, VL= Very Low)

Sl.No Mode of availing information VH H A L VL


11.1 Notice Board
11.3 Friends and Relatives
11.3 Ration Supplier
11.4 News paper advertisement

12. Rate your satisfaction regarding the following aspects of change?


(FS=Fully Satisfied, S=Satisfied, N=Neutral, D=Dissatisfied, FD=Fully
Dissatisfied)
13.
Sl.No Attributes FS S N D FD
14.
15.
12.1 Fingerprint scanning
16.
12.2 Ration card portability
17.
18.
12.3 Linking Aadhaar with ration card
19.
12.4 Colour coded ration card
20.

13. What is your level of perception towards the change? (SA=Strongly Agee,
A=Agree, N=Neutral, DA=DisAgree, SD=Strongly Disagree)

62
Sl.No Level of perception SA A N DA SD
13.1 This new system is better than earlier.
13.2 It has a bad effect on card holders
when the fingerprint is not match.
13.3 Through this change Govt. aims at the
welfare of consumers who depends
upon PDS.
13.4 New changes helps to reduce the
limitations of ration shop.

14. What are the main factors that influence the changes in PDS? (SA=Strongly
Agee, A=Agree, N=Neutral, DA=DisAgree, SD=Strongly Disagree)

Sl.No Factors SA A N DA SD
14.1 Food security
14.2 To get commodities to the genuine consumers
14.3 To prevent diversion of PDS stocks
14.4 To make PDS error free and corruption free
14.5 To utilize all ration shop by all consumers with in
the district.

15. If yes, what are the main benefits associated with the changes in PDS?
(SA=Strongly Agee, A=Agree, N=Neutral, DA=DisAgree, SD=Strongly Disagree)

63
Sl.No Benefits SA A N DA SD
15.1 It ensure transparent function of
PDS.
15.2 It does not promote black marketing.
15.3 Commodities can purchase from
nearest ration shop.
15.4 Consumers get fairly priced bills on
their purchase.
15.5 Only card holders can obtain ration
quota.
15.6 Priority categories of card holders
get many other benefits from Govt.
15.7 Ration dealers supply all items
prescribed by Govt.

16. Below are the various problems of new changes introduced in ration shop. Rate it as
your experience.(SA=Strongly Agee, A=Agree, N=Neutral, DA=Dis Agree,
SD=Strongly Disagree)

Sl.No Problems SA A N DA SD
16.1 Server down.
16.2 Consumers are not interested to change
into a new technology.
16.3 Inorder to buy ration articles consumers
should directly approach the ration shop.
16.4 Time consuming.
16.5 In certain circumstances the fingerprint
of the consumer does not match with the
machine.
16.6 It divert people to buy commodities from
ration shop into grocery store.

64
17. Evaluate the following factors in relation to functioning of PDS based on the
need for improvement.(SA=Strongly Agee, A=Agree, N=Neutral, DA=Dis
Agree, S=Strongly Disagree)

Sl.No Factors SA A N DA SD
17.1 Need more quality server.
17.2 Find a new way instead of scanning
fingerprint.
17.3 Increase the awareness level of consumers.
17.4 Uptodate information should be published
in the notice board.

Suggestions

“Thank you for participating in this Survey”.

65

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