CHAPTER
19
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PUBLIC
DISTRIBUTION SYSTEM
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1. The public
distribution system (PDS), ensures the distribution of essential items such as selected
cereals, sugar and kerosene at subsidized prices to holders of ration cards. The PDS also
helps to regulate open- market prices for commodities that are distributed through the
system.
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2. In Delhi,
unlike most other states, the PDS distributes commodities to all card-holders irrespective
of their income group. The main items distributed through the PDS are cereals such as rice
and wheat and essential items such as sugar, edible oil and kerosene. According to the
Department of Food & Supplies, there were 3,214 PDS outlets in Delhi in March 1999. Of
these, 2,811 outlets were in urban areas and 403 in rural areas. On an average, each Fair
Price Shop handles 1,000 ration cards. The number of households in Delhi that carry ration
cards increased from 23.02 lakh in 1990-91 to 33.53 lakh in 1998-99 .
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3. The
distribution of ration cards, cereal and sugar units and other relevant data is indicated
below:
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Statement
19.1 |
Important
Indicators of PDS-Delhi
|
| S.No. |
Item |
1990-91
|
1998-99 |
| 1. |
No. of Cards (in
‘000’) |
2362
|
3353 |
| 2. |
No. of Cereal Units (in
‘000’) |
20312 |
30721 |
| 3. |
No. of Sugar Units (in
‘000’) |
11866
|
17793
|
| 4. |
Fair Price Shop (in number)
(i+ii) |
3579
|
3214 |
| (i) |
Urban |
3299
|
2811 |
| (ii) |
Rural |
280 |
403 |
|
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5. No. of
Licensed Shops of kerosene oil 1840 2342
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Year-wise details
are in Table 19.1
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4. The quantity
of cereals and sugar allotted to Delhi and its distribution through the PDS
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Statement 19.2 |
DISTRIBUTION
of Cereals in Delhi, 1998-99
|
|
(in
million tonnes) |
| Item |
Allotted
Quantity |
Quantity
Lifted for Distribution |
Percentage
Distributed |
| Rice |
1,64,680
|
1,05,831
|
64.3 |
| Wheat |
6,94,800
|
4,84,292 |
69.7 |
| Sugar |
1,45,478
|
1,45,478
|
100.0 |
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NSS Survey on
Public Distribution System
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5. To assess the
extent to which items are available to consumers through Delhi’s Public Distribution
System, a sample survey (NSS-49th Round) was conducted in January-June 1993 both in the
rural and urban areas. Informants were asked to provide information about the quantity and
value of selected commodities purchased both from the PDS as well as from other sources in
the 30 days preceding the date of the survey. Households that were not using the PDS were
asked to specify the reasons. The main findings of the survey are given below:
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(i) In the urban
areas, 63-77% of the rice and wheat requirement was met through the PDS. In the rural
areas, 71% of the requirement for rice and 54% for wheat was met through the PDS.
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(ii) About 60% of
the sugar requirement in both rural and urban areas was met through the PDS.
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(iii) The PDS
adequately met the demand for kerosene, since 86% of the kerosene purchased in the rural
sector was from the PDS. In the urban sector, 78% was bought through the PDS.
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(iv) An analysis
of the relative use of the PDS in a cross-section of consumers represented by various
fractile groups of monthly per capita expenditure (MPCE) indicated that the system was
more popular with the lower and middle income groups than with the higher income groups.
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(v) The purchase
of atta and edible oil (in percentage terms) from the PDS was insignificant.
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| (vi) The main
reasons consumers did not use PDS was either that they did not have ration cards or found
the quality of the commodities not upto their satisfaction . When the prices in the open
market are higher than through the PDS, demand under the PDS increases, resulting in
increased lifting through the PDS |