Professional Documents
Culture Documents
FUNCTIONS:
1.Procurement
The Central Government extends price support for procurement of wheat, paddy and coarse grains
through the FCI and State Agencies. All the food grains conforming to the prescribed specifications
are procured by the public procurement agencies at the Minimum Support Price (MSP)
plus incentive bonus announced, if any.
Procurement is undertaken both in direct and in-direct mode.
Under Decentralized Procurement Scheme (DCP), introduced in 1997-98, food grains are
procured and distributed by the State Governments themselves. The designated States
procure, store and issue food grains under Targeted Public Distribution System
(TPDS) and other welfare schemes of the Government.
The decentralized system of procurement was introduced to enhance the efficiency of
procurement for PDS and to encourage procurement in non-traditional States as well as to
save on transit losses and costs.
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Before the start of each procurement season, Central Government announces uniform specification
for quality of wheat, paddy, rice and coarse grains.
Quality Control Division of FCI ensures procurement of food grains from procurement
centres strictly in accordance with Govt. of India's uniform quality specifications.
FCI has also been nominated as an additional nodal Agency for procurement of Pulses and
Oilseeds.
2.Distribution
FCI meets the requirements of TPDS through grains procured which are issued at Central Issue
Price fixed by Government to fulfill the objective of helping the economically vulnerable sections
of society.
FCI delivers food grains to State Govt./ State Agencies from its base depots for distribution by the
latter through Fair Price Shops.
The role of FCI becomes even more important in the backdrop of National Food Security Act,
2013, that commits to distribute grains through TPDS and other welfare schemes, at highly
subsidized prices.
Since its inception, FCI has played a significant role in India's success in transforming the crisis
management oriented food security into a stable security system.
PDS had substantially contributed to the containment of rise in food grain prices and ensured access
of food to urban consumers. As the national agricultural production had grown in the aftermath of
the Green Revolution, the outreach of PDS was extended to tribal blocks and areas of high
incidence of poverty in the 1970s and 1980s.
PDS is supplemental in nature and is not intended to make available the entire requirement of any
of the commodities distributed under it to a household or a section of the society.
PDS is operated under the joint responsibility of the Central and the State Governments. The
Central Government, through FCI, has assumed the responsibility for procurement, storage,
transportation and bulk allocation of food grains to the State Governments.
The operational responsibilities including allocation within the State, identification of eligible
families, issue of Ration Cards and supervision of the functioning of Fair Price Shops etc., rest with
the State Governments.
Under the PDS, presently the commodities namely wheat, rice, sugar and kerosene are being
allocated to the States/UTs for distribution. Some States/UTs also distribute additional items of mass
consumption through the PDS outlets such as pulses, edible oils, iodized salt, spices, etc.
• Till 1992, PDS was a general entitlement scheme for all consumers without any specific target.But in
1992, PDS became
• But in 1992, PDS became RPDS (Revamped PDS) focussing the poor families, especially in the
far-flung, hilly, remote and inaccessible areas. In 1997 RPDS became
• In 1997 RPDS became TPDS (Targeted PDS) which established Fair Price Shops for the
distribution of food grains at subsidized rates.
REVAMPED PDS :
The Revamped Public Distribution System (RPDS) was launched in June, 1992 (8th FYP) with a
view to strengthen and streamline the PDS as well as to improve its reach in the far-flung, hilly,
remote and inaccessible areas where a substantial section of the poor live.
It covered 1775 blocks wherein area specific programmes such as the Drought Prone Area
Programme (DPAP), Integrated Tribal Development Projects (ITDP), Desert Development
Programme (DDP) were being implemented and in certain Designated Hill Areas (DHA) which
were identified in consultation with State Governments for special focus.
TARGETED PDS:
The Targeted Public Distribution System (TPDS) was launched in 1997 (9th FYP) to benefit the
poor and to keep the budgetary food subsidies under control to the desired extent following failure of
the earlier PDS system.
Conceptually, the transition from universal PDS to TPDS was a move in the right direction,
as it was designed to include all the poor households and raise the unit subsidy and ration
quota considerably for them.
TPDS aims at providing food grains to people below the poverty line at highly subsidised
prices from the PDS and food grains to people above the poverty line at much higher prices than the
poverty line.
Thus, the TPDS adopted by the Government of India maintains the universal character of the
PDS but adds a special focus on the people below the poverty line.
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(ii) Twenty-five kilograms of foodgrains were made available to each eligible family at a highly subsidised
rate of Rs 2 per kg for wheat and Rs 3 per kg for rice.
(iii) This quantity was further increased from 25 to 35 kgs from April 2002.
(iv) The Scheme has been further expanded twice by additional 50 lakh BPL family in June 2003 and in
August 2004. With this increase 2 crore families have been covered under the AAY.
In People’s Union for Civil Liberties v. Union of India case, Supreme Court contended that the “right to
food” is essential to the right to life as provided in Article 21 of the Constitution. In line with this Parliament
passed the National Food Security Act (NFSA) in 2013. The NFSA seeks to make the right to food a legal
entitlement by providing subsidized food grains to almost two-thirds of the population. It relies on the
existing Targeted Public Distribution System (TPDS) mechanism to deliver these entitlements .
1. The Act provides for coverage of upto 75% of the rural population and upto 50% of the urban
population for receiving subsidized foodgrains under Targeted Public Distribution System (TPDS), thus
covering about two-thirds of the population.
2. The eligible persons will be entitled to receive 5 Kgs of foodgrains per person per month at
subsidised prices of Rs. 3/2/1 per Kg for rice/wheat/coarse grains.
3. The existing Antyodaya Anna Yojana (AAY) households, which constitute the poorest of the poor,
will continue to receive 35 Kgs of foodgrains per household per month.
4. The Act also has a special focus on the nutritional support to women and children. Besides meal to
pregnant women and lactating mothers during pregnancy and six months after the child birth, such
women will also be entitled to receive maternity benefit of not less than Rs. 6,000.
5. Children upto 14 years of age will be entitled to nutritious meals as per the prescribed nutritional
standards.
6. In case of non-supply of entitled foodgrains or meals, the beneficiaries will receive food security
allowance.
7. The Act also contains provisions for setting up of grievance redressal mechanism at the District
and State levels.
8. Separate provisions have also been made in the Act for ensuring transparency and accountability.
PDS REFORMS:
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• Technology Based reforms: End to end computerization would bring in transparency in the whole
process. It would help to prevent leakages and diversion of food grains to a great extent.
• Adhaar Linked and digitized ration cards: This allows online entry and verification of beneficiary
data. It also enables online tracking of monthly entitlements and off-take of foodgrains by
beneficiaries.
• Computerized Fair Price Shops: FPS automated by installing ‘Point of Sale’device to swap the
ration card. It authenticates the beneficiaries and records the quantity of subsidized grains given to a
family.
• DBT: Under the Direct Benefit Transfer scheme, cash is transferred to the beneficiaries’ account in
lieu of foodgrains subsidy component. They will be free to buy food grains from anywhere in the
market. For taking up this model, pre-requisites for the States/UTs would be to complete digitization
of beneficiary data and seed Aadhaar and bank account details of beneficiaries. It is estimated that
cash transfers alone could save the exchequer Rs.30,000 crore every year.
• Use of GPS technology: Use of Global Positioning System (GPS) technology to track the movement
of trucks carrying foodgrains from state depots to FPS which can help to prevent diversion.
• SMS-based monitoring: Allows monitoring by citizens so they can register their mobile numbers
and send/receive SMS alerts during dispatch and arrival of TPDS commodities
• Use of web-based citizens portal: Public Grievance Redressal Machineries, such as a toll-free
number for call centers to register complaints or suggestions.
Scheme:
• The scheme guidelines envisage to provide cooked mid-day meal with 450 calories and 12 g of
protein to every child at primary level and 700 calories and 20 g of protein at upper primary level.
This energy and protein requirement for a primary child comes from cooking 100 g of rice/flour, 20
g pulses and 50 g vegetables and 5 g oil, and for an upper primary child it comes from 150 g of
rice/flour, 30 g of pulses and 75 g of vegetables and 7.5 g of oil.
• Free supply of food grains @ 100 grams per child per school day at Primary and @ 150 grams per
child per school day at Upper Primary.
• A separate provision for payment of honorarium to cook-cum-helper @ Rs. 1000/- per month has
been made. One cook-cum-helper may be engaged in a school having upto 25 students, tow cooks-
cum-helpers for schools having 26 to 100 students and one additional cook-cum-helper for every
addition of upto 100 students.
• Provision of mid day meal during summer vacation in drought affected areas.
Under Wheat Based Nutrition programme (WBNP) implemented by the Ministry of Women and Child
Development, food grains are allotted to states/union territories under the Integrated Child Development
Scheme (ICDS) for providing nutritious/ energy food to children below six years of age and
expectant/lactating women.
Fixation of MSP
The MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices
(CACP).
Factors taken into consideration for fixing MSP include:
development and regulation of warehouses, negotiability of warehouse receipts and promote orderly growth
of the warehousing business in the country
The WDRA is a Statutory Authority under the Department of Food and Public Distribution, Government of
India. The Authority has its Headquarters in New Delhi.
The Authority consists of a Chairperson and two Members appointed by the Central Government.
Agricultural Produce Marketing Committee:
Agricultural Produce Market Committees (APMC) are the marketing boards established by the state
governments in order to eliminate the exploitation incidences of the farmers by the intermediaries, where
they are forced to sell their produce at extremely low prices.
All the food produce must be brought to the market and sales are made through auction. The market place
i.e, Mandi is set up in various places within the states. These markets geographically divide the state.
Licenses are issued to the traders to operate within a market. The mall owners, wholesale traders, retail
traders are not given permission to purchase the produce from the farmers directly.
• Agricultural Produce Market Committee (APMC) is a system operating under the State Government
since agricultural marketing is a State subject.
• The APMC has Yards/Mandis in the market area that regulates the notified agricultural produce and
livestock.
• The introduction of APMC was to limit the occurrence of Distress Sale by the farmers under the
pressure and exploitation of creditors and other intermediaries.
• APMC ensures worthy prices and timely payments to the farmers for their produce.
• APMC is also responsible for the regulation of agricultural trading practices. This results in multiple
benefits like:
• Needless intermediaries are eliminated
• Improved market efficiency through a decrease in market charges
• The producer-seller interest is well protected
• Small Farmers’ Agribusiness Consortium (SFAC) which is the lead promoter of National
Agricultural Market (eNAM). SFAC which is formulated under the Department of Agriculture,
Cooperation & Farmers’ Welfare (DAC&FW). SFAC through open tender selects a Partner to
develop, operate and maintain the NAM e-platform.
Goal of FAO: Their goal is to achieve food security for all and make sure that people have regular access
to enough high-quality food to lead active, healthy lives.
• Iacts as a neutral forum where all nations meet as equals to negotiate agreements and debate policy
• FAO is also a source of knowledge and information, and helps developing countries and countries in
transition modernize and improve agriculture, forestry and fisheries practices, ensuring good
nutrition and food security for all.
• India is a member of FAO
Food and Agriculture organization (FAO) Council approves India’s proposal to observe an International
Year of Millets in 2023.
The Bill sets up the Central Consumer Protection Authority (CCPA) to promote, protect, and
enforce the rights of consumers as a class. It can issue safety notices for goods and services, order
refunds, recall goods and rule against misleading advertisements.
The Bill establishes Consumer Protection Councils at the district, state, and national levels to
render advice on consumer protection.\
Amendments to the 1986 Act
E-commerce now defines direct selling, e-commerce and electronic service provider.
The central government may prescribe rules for preventing unfair trade practices in e-
commerce and direct selling, this will go a long way in protecting online consumers. This
provision was not present in the 1986 Act.
Provisions on product liability and unfair contracts: Under product liability, when a consumer
suffers an injury, property damage or death due to a defect in a product or service, he can file a claim
for compensation under product liability. The Bill outlines cases in which the product manufacturer,
service provider and seller will be held guilty under product liability.
An unfair contract has been defined as a contract between a consumer and manufacturer/
service provider if it causes a significant change in consumer rights.
Unfair contracts cover six terms, such as payment of excessive security deposits in an
arrangement, the disproportionate penalty for a breach, and unilateral termination without
cause.
The consumer courts being set up under the Bill will determine contract terms to be unfair
and declare them null and void.
Establishes the Central Consumer Protection Authority (CCPA), to promote, to protect, and to
enforce the rights of consumers as a class. Such a regulator was missing in 1986 Act.
Increased Pecuniary jurisdiction of Commission at District level from 20 lakh to now 1 crore, at
the state level from 20 lakh-1 crores, to between 1 - 10 crores now and at a central level from above
1 crore to above 10 crores now.
Alternate dispute redressal mechanism: Now Mediation cells will be attached to the District,
State, and National Commissions which were absent in the 1986 Act.
Any consumer in any part of the country can register on this site and can lodge a complaint against
misleading advertisements. A well-defined protocol then ensures that the complaints are taken up with the
relevant authorities in the state or the central government concerned and appropriate action taken. The portal
also enables the consumer to be informed of the action taken. The portal will be linked to all state authorities
concerned, select voluntary consumer organizations in the country and the sector regulators in the
Government of India.
The Department of Consumer Affairs has partnered with the Advertising Standards Council of India (ASCI)
in tackling the menace of misleading advertisement through this portal. Consumers can complain about
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misleading advertisements through this portal and ASCI will exercise moral persuasion to prevent such
advertisements.
All the best
JAI HIND