Indian Agricultural: Growth, Generation, Policy & Problem Indian Agricultural | Page 45

Pg.no. 44
4. To determine the issue prices of food grains, in consultation with the government in the light of the
recommendation of the CACP, before the commencement of marketing season. Thus, fixing of the
issue price is of crucial importance both from the point of view of regulating the market prices and of
determining the size of the commitment undertaken through the PDS. It is also a vital force for
maintaining prices at reasonable level.
Management of the Public Distribution System:
Under the existing division of the authority between central and states governments, Central
Government through the FCl procures, transports and stores the food grains. On the other hand, state
governments are liable to pick the food grains from FCI depots and make it available to the
consumers through the network of fair price shops. A fair price shop covers a population of about
2000 of a particular village/ town or cities. The overall control of the public distribution system rests
with the food and civil supplies department of the state government. All people whether rich or poor
are entitled to draw supplies from fair price shops at fixed prices. The number of fair price shops has
been increasing continuously over the years in both rural and urban areas. According to the civil
supplies department about 25 percent of the fair price shops were run by cooperatives. The scale of
PDS became massive as during the period of 1971 to 1990 public distribution of cereals ranged
between 8.9 and 15 million tons per year. Over the years the share of PDS has varied from 9 to 15
percent of the total cereal production. The distribution is quite high during lean years and quite low
when market prices are low. The quantities supplied through the PDS outlets remained below 5
million tones up to 1963 and thereafter they had gone up to 14 million tones by mid 1960s.
Throughout the seventies the quantities remained around 10 million tones and during eighties the
average was around 16 million tones. In the post reform period average distribution marginally
improved to 17 million tones (table 5.23). PDS continues to be the major instrument of Governments'
economic policy not only for ensuring food security but also for protecting purchasing power of the
poor.
According to the Economic Survey, ‘’75 percent of the ration shops were located in rural areas. More
than 70 percent of the PDS rice and more than 55 percent of the PDS wheat was sold in rural areas.
The distribution of PDS was more effective in states like Gujarat, Kerala. Maharashtra, Tamil Nadu,
Andhra Pradesh and West Bengal. There is a regular operation of PDS supplying the food at highly
subsidized prices lo those living in the Integrated Tribal Development Project Areas. Different anti-
poverty employment programme also distribute food grains as a part payment for wages to help the
poor. These operations have caused subsidy on food to increase over the years. "
Miscellaneous Schemes:
Antyodaya Anna Yojna (AAY):
Introduced on 25 December 2001, the scheme aimed to identify 10 million poorest of the poor out of
the total 65 million BPL families. Under this scheme selected families are provided 35 kg food grains
per month at the Central Issue Price of Rs 2 per kg for wheat and Rs 3 per kg for rice. Initially the
Ramesh Kumar P