Food subsidy to poor: States' failure worries Centre

At a time when the Modi government is keen on giving a push to digitisation, tardy implementation of a key Central scheme by the states to plug the loopholes in food subsidy to the poor, has raised concerns in government circles. It has come to light that even states with huge population like Uttar Pradesh, Bihar, West Bengal, and Haryana have failed to meet the target.

The achievement on this count is also found wanting in states like Assam, Uttarakhand, Punjab, and Kerala.

With a view to modernise the Targeted Public Distribution System (TPDS) and to check leakages and diversion, the Department for Food and Public Distribution has been implementing a Plan Scheme on ‘End-to-end Computerisation of TPDS Operations’, which is expected to facilitate digitisation of ration cards and beneficiaries and other databases, computerisation of supply-chain management, setting up of transparency portal, and grievance redressal mechanisms.

The scheme, approved in October 2012, was to be be implemented during the 12th Five Year Plan (2012-17) in all states and union territories. However, the deadline was later extended up to March 2018. Yet, the scheme, which was to be implemented on a cost sharing basis with states and UTs, remains to see the light of the day in many places.

In Uttar Pradesh, where 95 per cent of the population have been issued Aadhaar cards, only 77 per cent of ration cards were seeded with Aadhaar. Among the beneficiaries of food subsidy, the Aadhaar number of only 24 per cent beneficiaries were seeded with Aadhaar details.

In West Bengal, even though 99 per cent of the population has Aadhaar numbers, the seeding of it in ration cards stagnates at 63 per cent. In Bihar, where 91 per cent population have been issued Aadhaar card, only 78 per cent ration cards are seeded with Aadhaar numbers.

Despite the digital push, none of the 38 thousand fair price shops operational in Assam have electronic point of sale (ePoS) devices. Even in West Bengal and Kerala, none of the 20 thousand and 14 thousand fair price shops, respectively, have ePoS. In UP, out of 80 thousand such shops, only 13,100, which is a meagre 16 per cent of the total fair price shops, have these devices installed.

In an official communication to Chief Ministers, Minister for Consumer Affairs, Food and Public Distribution, have underlined that for advancement of the goal of digital cash economy, it is necessary to have digital payment facilities at fair price shops, which is dependent on installation of ePoS devices.

In most of these states, the automation of supply chain management, a key component of the scheme is also pending. Reforms mandated under the implementation of the Food Security Act is not possible without completing this work.

Standing Committee on Food, Consumer Affairs and Public Distribution in its report on Computerisation TPDS presented to both Houses of Parliament in November last year had noted with concern that the progress of work of computerisation is progressing "at snail's pace" and it and had apprehended that this would "negate" the benefits reaching the masses.

The panel had urged Department of Food and Public Distribution to impress upon the states/ UTs to speed up the work on war-footing and complete the work in a time-bound manner, so as to improve the over-all functioning of the TPDS operations in the country.