1. Class-3- Tools for Policy Making and Programme Delivery
Dr. M.K.Satish

2. Public Distribution System-Orissa

3. Public Distribution System-Orissa
The Food Supplies and Consumer Welfare Department is a department functioning under Government of Orissa responsible for providing PDS
The Primary objectives of this Department are:
 To ensure distribution of PDS commodities to the people at reasonable prices
To act as a catalyst to strengthen the Consumer Protection movement in the state.
Functions of the Department:
 Formulation and implementation of policy relating to procurement, storage and distribution of food grains
Implementation of the Targeted Public Distribution System (TPDS)
Administration of Essential Commodities Act, 1955, Prevention of Black-marketing and maintenance of Services of Essential Commodities Act, 1980 various control orders of Central Govt. and State Government
Procurement of Paddy
Study, collection of intelligence and monitoring of prices of various commodities in the market
Implementation and enforcement of standards of Weights and Measures Act and standards of Weights and Measures (Enforcement) Act and Rules made there under

4. Public Distribution System-Orissa
Strengths of PDS implementation in Orissa:
Orissa is one of the states where food-grain procurement is not completely Food Corporation of India based. In fact Orissa is allowed decentralised procurement, especially of paddy
The Panchayati Raj Department has 6,000 storage facilities each of 50 MT capacity and 300 facilities each of 100 MT capacity; but these storage facilities have not been used by Orissa State Civil Supplies Corporation
Mobile Van based PDS delivery called “Maitree” had been introduced in some areas with Primitive Tribal Groups
The Dept has a dedicated toll-free help-line for PDS related grievance recording
World Food Programme is supporting the state in the district of Rayagada in 100% multi- modal bio-metric enumeration along with biometric-reduplication, distribution of new ration cards against biometric validation
30,000+ fair price shops in a state with 6234 gram panchayats means the penetration/presence of FPS in this state is fairly good

5. Public Distribution System-Orissa
Challenges of PDS in Orissa
The PDS targeting is layered on dated BPL survey of Hence even though the Ministry of Rural Development (MoRD) did its own survey and the figures of BPL for Orissa spiked, yet there has been a dispute between the state and the Planning Commission leading to inadequate allocations. The state claims 5.5 million BPL households while the GoI’s figure is 3 million
The knock-on impact is while 35 kgs of food grain is the entitlement, the state is providing 25 kgs
Even factoring in Panchayati Raj Department’s ware-house, there is a deficit of 300,000 MT ware- housing capacity
Supply chain for the logistics and transportation of food-grains is under-costed leading to the suppliers, storage agents et al colluding for pilferage to recover operating costs. Transportation is ridiculously low, budgeted at Rs 10 for every 1 kilometers
Vigilance Committees have been reduced to just doing the functions of convenient application (read with political connection) review, recommendations of licensees’ et al.
Between the Food Corporation of India go-downs and Fair Price Shops, there is another level of non-State actor i.e. the storage agent
51% leakage in kerosene oil, though this figure needs to be read with caution, considering the fact that Chandigarh has 85% leakage and Delhi has 58% + leakage

6. Strategic Options State Level:
Support the Dept in formulating Supply Chain Management Rationalisation Process Roadmap constituting of:
Costing
Ware-housing
Automation (to plug leakages i.e. electronic Weighing Systems integrated with automated allocation and delivery system) from the point of ware-housing with automated weighing systems, electronic memo at FCI godown, storage agents’ and FPS’ point of sale
Computerisation of the system including the platform provided by Sevottam initiative and the Wadhwa Commission Report recommendations
Costing of National Food Security Act (when the Bill-under-draft becomes an Act) for the state at current prices and updated beneficiary list for budgeting exercise intra-department and negotiation with central government for assistance
Even though beneficiary list is an issue and the BPL numbers’ updation is the major challenge for any targeted social protection programme with BPL being the primary eligibility criteria

7. Strategic Options District Level:
Stream-lining the Supply Chain system of PDS from food-grain procurement for two food-insecure districts of Orissa
Supporting the setting up, functioning and scaling up of District Vigilance Committees mandated by the Supreme Court in four districts from the gram panchayat, taluk/block level till the district levels with the core remit of vigilance and enforcement:
This committee will go beyond FPS application scrutiny and recommendation to doing spot checks on the FPS not functioning properly et al
It will cohere its function with the Ombudsmen institution in the districts where Ombudsman has been appointed for the MGNREGS

8. Roles and Responsibilities
Activity
Task
Responsibility
State Level
Supply Chain Management Rationalisation
Process Roadmap
GoO, Dept of FS & CW:
Acceptance of the report and identification of the sub-components
Computerisation of the system
Computerisation of PDS from weighing automation to point of sale delivery weighing
Dept of FS & CW:
Capacity Building of the staff across the board
Costing of National Food Security Act
Once the Bill is finalized, costing the components with a progressive interpretation of entitlements
Gets a negotiating tool for negotiating grants from the Federal funds
District Level
Stream-lining the supply-chain system of PDS
From point of procurement till point of sale: Mapping the entire process and suggesting the stream-lining
Implementing the recommendation
Supporting setting up and functioning of Vigilance committees
Setting up, building capacity and supporting the initial year of functioning
Cohere the DVC functions with the Ombudsman institution

9. Conditions pre-requisites for success
Dependencies (conditions/pre-requisites for success):
 The two non-state actors and their continuance in the existing PDS system:
Storage Agents
Fair Price Shops
Political interest in the programme
Increase judiciary and media interest in functioning of the programme

10. Risk Mitigation Factor Risk Probability of Occurence Impact
Mitigation Action
Left wing extremism
Could result in PDS institutions facing the ire if perceived dysfunctional/Corrupt
High
Would be important to reclaim the perception of the institutions being pro-people
Possible backlash to District Vigilance Committees
Would lead to clientele-ism continuing and the corruption
Need for rational, realistic costed FPS to ensure corruption is delegitimized
Provide due enforcement powers to DVCs
Cheap staple grains will always be a political winner
This would affect the true cost to deliver and the financial feasibility of the programme
Real costing has to be re-adjusted to populist announcements to provide the state with realistic estimates
But federal ministry is not necessarily going to respond

11. Thank You