MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS AND PUBLIC DISTRIBUTION
( SHRI SRIRAM CHAUHAN )
(a), (b), (c) & (d) : A well targeted and properly functioning Public Distribution System
(PDS) is an important constituent of the strategy for poverty eradication. However, the PDS
as it stood before June, 1997 was widely criticised for its failure to serve the population
Below Poverty Line (BPL), its urban bias, negligible coverage in the States with the highest
concentration of the rural poor and lack of transparent and accountable arrangements for
delivery. The Targeted Public Distribution System (TPDS) with its focus on BPL population
by assuring 10 kg. of foodgrains per family per month at highly subsidised rates was
introduced in June, 1997 after extensive and intensive deliberations with the State Governments.
By fixing the allocation on the basis of annual average lifting during past 10 years for all
States including Karnataka and Maharashtra, an attempt was made to balance the considerations
of equity and efficiency. States having significantly higher BPL population got higher
allocation. The allocation in the past did not bear any meaningful relationship with actual
offtake.
Identification of BPL families at micro level is done by States and detailed guidelines
were issued by Government of India for identification and issue of special ration cards before
introduction of TPDS. The assured allocation for BPL families to the States is based on the
estimates arrived at by Planning Commission using the methodology of Expert Group under Prof.
Lakdawala.
Recently Advisory Council meetings have been held on zonal basis wherein peoples`
representatives in State Governments and authorities of Central Government have discussed at
length on issues relating to PDS including matters of estimates of BPL population and allocation
of foodgrains for them. To make PDS better targetised for the poor and needy, the Government
of India has recently announced an increase in BPL allocation from 10 kg. to 20 kg. per family
per month in the budget presented in Parliament for the year 2000-2001. The allocations for
the Above Poverty Line population will continue subject to availability of foodgrains in the
central pool and at economic cost entailing no subsidy.