logo
Crack down on PDS anomalies in UP: Pause between transactions a must, sugar overpricing under lens

Crack down on PDS anomalies in UP: Pause between transactions a must, sugar overpricing under lens

Hindustan Times03-06-2025
In a bid to streamline the public distribution system (PDS), the Uttar Pradesh government has introduced two important measures to tackle irregularities in ration distribution by curbing bogus transactions and exposing overcharging, shortchanging and underweighing etc.
As a part of the first measure, the government has mandated a minimum one-minute pause between two consecutive transactions made by any ration dealer through the electronic Point-of-Sale (ePOS) device.
'Much like the protocol followed in ATM transactions, we have mandated the one-minute interval between the consecutive transactions by a ration dealer to prevent bogus or proxy entries which have long plagued the fair price shop network across the state,' principal secretary, food and civil supplies, Ranvir Prasad said.
According to other officials, some dealers were misusing the POS system to quickly process multiple transactions—sometimes without the actual beneficiaries being present—by exploiting saved biometric data or other means.
'The idea is to ensure that every transaction is genuine and done in real time. A mandatory pause between transactions makes it difficult to carry out mass bogus entries and helps detect suspicious behaviour,' said a senior official in the food and civil supplies department.
However, the more disturbing issue has surfaced through a new initiative launched to take direct feedback from the ration beneficiaries. Using a random calling system, the department has begun reaching out to people who collect rations to get their on-ground experiences.
Early feedback has revealed a worrying pattern. Many ration dealers are overcharging poor families while distributing subsidised sugar to them. Households covered under the Antyodaya Anna Yojana (AAY), a scheme meant for the poorest of the poor.
Over 40 lakh AAY families across Uttar Pradesh are entitled to get three kg of sugar every three months at subsidised rates of ₹18 per kg. But the feedback has shown that several dealers are asking for more money than the official price.
'We have developed a new system under which we make random calls to beneficiaries asking them a few pointed questions like if their ration dealer behaves properly, dispenses full quantity, charges the right price etc,' Prasad said. 'Some citizens contacted randomly have complained about their being overcharged for sugar while many others complained about under-weighing ration' he added.
He said action on all the complaints about shortchanging, weighing less than required, misbehaviour and overpricing would be taken. 'District officials have been directed to verify the complaints and take immediate corrective steps,' Prasad added.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Why Govt has offered wheat and rice for sale in open market, but at a higher price than last year
Why Govt has offered wheat and rice for sale in open market, but at a higher price than last year

Indian Express

time12 hours ago

  • Indian Express

Why Govt has offered wheat and rice for sale in open market, but at a higher price than last year

The central government has increased the reserve prices of wheat and rice to be offloaded to private traders from its strategic reserves by about 11 per cent and 3 per cent respectively over the last fiscal (2024-25). Reserve price is the minimum price at which the Food Corporation of India (FCI) – the statutory body that procures, stores, and distributes foodgrains through the Public Distribution System (PDS) – sells from the Central Pool under the Open Market Sale Scheme-Domestic (OMSS-D). The scheme is used by FCI to offer grains, mainly wheat and rice, in the open market by e-auction as a mechanism to ensure supply and control food inflation. Why is the increase in the reserve price of India's main cereals important? The new reserve prices The Department of Food and Public Distribution (DFPD) under the Ministry of Consumer Affairs, Food and Public Distribution, which has fixed the reserve prices of wheat and rice, has not announced what quantities of these grains will be sold in the open market. That will be decided by FCI. WHEAT: On July 10, the DFPD fixed a reserve price of Rs 2,550 per quintal for wheat to be sold to private parties through e-auctions; central cooperative organisations (such as NAFED, NCCF, and Kendriya Bhandar) for sale under the 'Bharat' brand; and to community kitchens. This reserve price is for wheat of all crop years including the current rabi marketing season (RMS) 2025-26, and will be valid until June 30 next year. It is 10.86 per cent higher than the reserve price fixed in the last fiscal (2024-25), which was Rs 2,300 per quintal. RICE: The reserve price of rice has been fixed in the range of Rs 2,320 to Rs 3090 per quintal, depending on who the buyer is. The existing reserve prices of rice will continue until October 31. From November 1, the reserve price of rice containing 25 per cent broken grains for sale to private parties and cooperatives/ cooperative federations by e-auction will be Rs 2,890 per quintal. This is 3.21 per cent more than the existing reserve price of Rs 2,800 per quintal. The reserve price of rice for sale to state governments and their corporations, and to ethanol distilleries for production of ethanol will increase to Rs 2,320 per quintal from the existing Rs 2,250 per quintal. And the reserve price for sale of custom milled rice (CMR) with 10% broken rice under the Rice Milling Transformation Scheme in the open market to private parties through e-auction has been raised to Rs 3,090 per quintal from Rs 3,000 per quintal. COARSE GRAINS: The reserve price for the sale of bajra to private parties through e-auction has been fixed at Rs 2,775 per quintal, ragi at Rs 4,886 per quintal, jowar at Rs 3,749 per quintal, and maize at Rs 2,400 per quintal. Why the increase in prices The Ministry has said that the 3 per cent increase in the reserve price of rice is in line with the increase in the minimum support price (MSP) of paddy. The MSP for paddy (common) and paddy (Grade A) have been fixed at Rs 2,369 and Rs 2,389 per quintal – 3 per cent higher than the last season. However, the increase in the reserve price of wheat is higher than the increase in its MSP. The MSP for wheat was increased by 6.59 per cent – to Rs 2,425 per quintal for RMS 2025-26 from Rs 2,275 per quintal in 2024-25. BUMPER CROP, BETTER PROCUREMENT: Wheat production reached a record high of 117 million tonnes in 2024-25, the third advance estimates of production of foodgrains released by the Agriculture Ministry on May 28 show. Government procurement for the central pool too was higher compared to the previous season. In the current RMS 2025-26, wheat procurement had reached 30 million tonnes by July 6, higher than the 26.5 million tonnes of last year. SUFFICIENT STOCKS: India's granaries are full. Rice stocks are at record levels, and wheat stocks are at their highest level in the last four years. According to FCI data, 37.9 million tonnes of rice and 36.9 million tonnes of wheat was available in the central pool as on June 1. Another 32.2 million tonnes of unmilled paddy (rice in husk) and 0.45 million tonnes of coarse grains were available. With an encouraging outlook for kharif in view of higher sowing and a good monsoon, the government has the scope to offload wheat and rice in the open market. This will also keep in check the inflationary trends in foodgrains. Harikishan Sharma, Senior Assistant Editor at The Indian Express' National Bureau, specializes in reporting on governance, policy, and data. He covers the Prime Minister's Office and pivotal central ministries, such as the Ministry of Agriculture & Farmers' Welfare, Ministry of Cooperation, Ministry of Consumer Affairs, Food and Public Distribution, Ministry of Rural Development, and Ministry of Jal Shakti. His work primarily revolves around reporting and policy analysis. In addition to this, he authors a weekly column titled "STATE-ISTICALLY SPEAKING," which is prominently featured on The Indian Express website. In this column, he immerses readers in narratives deeply rooted in socio-economic, political, and electoral data, providing insightful perspectives on these critical aspects of governance and society. ... Read More

Farmers asked to register for crop insurance before July 31
Farmers asked to register for crop insurance before July 31

Hans India

time2 days ago

  • Hans India

Farmers asked to register for crop insurance before July 31

Tirupati: Farmers in Tirupati district have been urged to take advantage of the crop insurance schemes available for the kharif 2025-26 season. Joint Collector Shubham Bansal, who chaired a District Level Monitoring Committee meeting on crop insurance on Tuesday, underscored the importance of safeguarding farmers against potential crop losses. The meeting was attended by officials including district agriculture officer Prasad, horticulture officer Dasaradha Rami Reddy, Lead bank manager Guntur Ravi Kumar, and insurance representatives. The Joint Collector explained that under the Pradhan Mantri Fasal Bima Yojana (PMFBY), paddy and bajra (pearl millet) have been notified for the kharif season. Paddy insurance is calculated at the village level, while bajra is insured at the district level. Future Generali India Insurance Company is the implementing agency. For paddy, the sum insured is Rs 1,05,000 per hectare, with a farmer premium of Rs 420 per hectare (Rs 168 per acre). For bajra, the sum insured is Rs 40,000 per hectare, and the premium is Rs 160 per hectare (Rs 64 per acre). The last dates for premium payments are August 15, 2025, for paddy and July 31, 2025, for bajra. Farmers can register via the National Crop Insurance Portal (NCIP). Those with crop loans from June 2025 onwards will have their premiums deducted by the bank unless they opt out through a written application submitted a week before the deadline. Farmers who did not avail crop loans can register via Common Service Centres (CSCs) or directly on the NCIP portal by uploading necessary documents, including Aadhaar, land records and bank details. Shubham Bansal urged farmers to enroll within the deadlines and make full use of these protective measures. He also launched a crop insurance awareness poster during the meeting, attended by district agriculture and horticulture officials, banking representatives, and insurance staff.

India can't fix food security with more grain alone. FCI at 60 needs a nutrition agenda
India can't fix food security with more grain alone. FCI at 60 needs a nutrition agenda

The Print

time3 days ago

  • The Print

India can't fix food security with more grain alone. FCI at 60 needs a nutrition agenda

With the recent equity infusion of Rs 10,157 crore, FCI is expected to play the salient role in the implementation of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) — certainly until December 2028, and most likely beyond. Both its core objectives — effective price support for farmers and provisioning food grains for Public Distribution System (PDS) and Other Welfare Schemes (OWS) — are now firmly entrenched in the political economy of the country. Cut to today, India's annual food grain production stands at 332 MT, and as per Niti Aayog estimates, the last decade saw the most visible reduction in poverty — from 29.17 per cent to 11.28 per cent. The Food Corporation of India (FCI) has moved to a swank corporate office in New Delhi, and its network has expanded to include 25 regional offices and 170 district offices. After the enactment of the Food Corporations Act, 1964, C Subramaniam, the food and agriculture minister in Lal Bahadur Shastri's cabinet, invited noted academician TA Pai to helm the new organisation with an authorised capital of Rs 100 crore and an equity of Rs 4 crore. The headquarters was established in Madras — as Chennai was then called — and the first district office was in Thanjavur. India's annual harvest was at its nadir — at 62 MT. Poverty had touched 44 per cent, according to VM Dandekar and N Rath, and 54 per cent, according to Pranab Bardhan. Milestones and challenges Six decades ago, when it was established, the FCI was at the forefront of India's quest for food self-sufficiency. It received accolades for its intervention in ramping up the procurement of paddy and wheat during the Green Revolution to support an expanded PDS. By the mid-1970s, supply began to outstrip demand. The warehousing and logistics infrastructure could not keep pace with rising production, and rats had a field day at railway stations where grain was stored in the open. Unlike the National Dairy Development Board (NDDB), which kept pace with technology and insulated its operations from power brokers, the FCI failed on both counts. It was dubbed 'a behemoth that had long outlived its purpose'. Yet reforming it remained a political hot potato, especially during the era of unstable coalitions in the 1990s. The economic liberalisation of 1991 opened up the Indian economy, and many FMCG brands began to see the potential of packaging 'atta' and 'chawal' for the growing middle classes. Four years later, in 1995, WTO protagonists launched a major campaign against the FCI, criticising what they saw as trade-distorting subsidies, even though India's Agreement on Agriculture with the WTO allowed these staples to be placed in the 'Blue Box,' which sanctioned certain forms of government support. Also read: MSP under Shastri began as a crisis response. Now India must ask what role it should play today Decentralised procurement By 1996-97, the procurement monopoly of the 'behemoth' was shared with state governments under the Decentralised Procurement Scheme (DCP). Apart from savings on transit, states also had to take direct responsibility for the quality of procurement and authentication of farmers. Of course, the deficit for either commodity was to be met by the FCI from its central pool (procurement over and above the state's own requirement). Thus for most states in the country, wheat was supplied from Punjab, Haryana and MP. Antyodaya – upliftment of the last (poorest) person During the first NDA regime under Prime Minister Atal Bihari Vajpayee, the government identified the poorest 1,00,00,000 families in the Below Poverty Line category and offered to them 35 kg of rice and wheat at a highly subsidised price of Rs 3 per kg of rice and Rs 2 per kg of wheat. It was expanded twice by an additional 50 lakh BPL families in June 2003 and August 2004. The general agreement was that while the Antyodaya families would get concessional food, those at BPL would be given food at 50 per cent of the MSP and the APL at 90 per cent. NFSA 2013 and UN SDGs Two years before the UN introduced the Sustainable Development Goals (SDGs), to which countries including India are signatories, India notified its own National Food Security Act on 10 September 2013. The Act aimed to cover 75 per cent of the rural population and up to 50 per cent of the urban population for receiving subsidised food grains under the Targeted Public Distribution System (TPDS). Together with MGNREGA, it addressed two top concerns — Zero Hunger and Zero Poverty. However, alongside this political commitment, there was a growing campaign highlighting inefficiencies in the FCI's operations. Soon after assuming office in 2014, the NDA government established a high-level committee under the chairmanship of Shanta Kumar to examine all aspects of the functioning of the FCI and the PDS. The committee recommended that the FCI hand over all procurement operations of wheat, paddy, and rice to states with prior experience, such as Andhra Pradesh, Chhattisgarh, Haryana, Madhya Pradesh, Odisha, and Punjab. It also suggested that the FCI shift its focus to supporting states and regions where farmers were in distress due to prices being significantly below the MSP — such as eastern Uttar Pradesh, Bihar, West Bengal, and Assam. The committee also promoted the use of the Negotiable Warehouse Receipt system to enable farmers to receive 80 per cent of the value of their produce at MSP as an advance, and invited private sector participation in warehousing, logistics, and storage — thereby making the system more compatible with a market economy. It called for prioritising millets, pulses, and oilseeds, and for aligning MSP with trade policy to ensure that landed import costs do not fall below MSP. It recommended cash transfers indexed to inflation, and starting in September that year, the central government launched pilot projects for providing food subsidies through cash transfers in the Union Territories of Chandigarh, Puducherry, and urban areas of Dadra and Nagar Haveli. The response, however, was mixed. The 15th Finance Commission, in its 2020 report, suggested that food subsidies be partially offset by increasing the Central Issue Price (CIP) of subsidised food grains. It also noted a decline in the share of cereals in food consumption, especially a reduced preference for wheat and rice. But then came Covid-19. FCI stocks became a blessing, enabling the country to extend free food to its most vulnerable sections to mitigate the distress caused by job losses and reverse migration. Free food grains were distributed from April 2020 to December 2022 under the PMGKAY. The scheme was then extended — first for a year, and then for an additional five years from January 2024. Under PMGKAY, the Centre has tasked the FCI and other state agencies with procuring food and organising its distribution to around 820 million people free of cost until December 2028. Initial estimates of around Rs 12 lakh crore over five years may be exceeded due to new census data and higher MSP announcements in the coming years. Also read: The real White Revolution—Shastri's NDDB built a farmers-first economy that still works The call is political According to Ashok Gulati, Distinguished Professor of Agriculture at the Indian Council for Research on International Economic Relations (ICRIER), the problem is not so much with the FCI, but with the policy framework. He questions the logic of providing cereals to over 67 per cent of the population at a time when the focus is on the thali index — cereals plus protein. He has suggestions with regard to both procurement and the PDS. On the procurement side, he suggests that procurement be restricted to the requirements of the PDS, and that MSP should be offered only for crops best suited to their respective agroclimatic zones. In a written reply to the Rajya Sabha on 17 December 2024, the government acknowledged holding 367 LMT, against the required 210.40 LMT. Taking the Sangrur district of Punjab as an example — where the groundwater level had fallen by more than 25 metres during 2000–2019 — Gulati suggested that MSP in this district be restricted to millets and pulses, thereby cutting down on water, power, and fertiliser subsidies of about Rs 10,000 per acre (to be shared equally by the Centre and the state). Likewise, he suggested converting the 5 lakh ration shops into multi-commodity nutrition hubs and giving each family a food subsidy of around Rs 8,000 per year to spend on a more diversified and nutritious food basket. This would also minimise the gap between PDS offtake and the NSSO data on actual food consumption. Meanwhile, the FCI is at the forefront of bringing about structural change in its procurement operations. The AI-based Automatic Grain Analyser (AGA), which minimises human intervention to ensure greater transparency in the grain procurement process, and the Mixed Indicator Method (MIM), used to determine the age of custom-milled raw rice during its acceptance in central pool procurement, are some of the tools introduced by the FCI. Silo storage, container movement, and tamper-proof, high-security cable seals on railway rakes have resulted in a 96 per cent reduction in transit losses. What is the final prognosis, then? The FCI has the technology, human resources, and financial muscle to implement the policy directives of the government. It has shown its resilience during times of crisis and is willing to take on additional responsibility as and when required. And if the mandate is expanded to make it the preferred procurement agency for the revamped PDS — comprising not just cereals but the entire range of agro commodities — the FCI will be able to take up the gauntlet. This is the third article in a series on Lal Bahadur Shastri and the institutions he helped establish. Sanjeev Chopra is a former IAS officer and Festival Director of Valley of Words. Until recently, he was director, Lal Bahadur Shastri National Academy of Administration. He tweets @ChopraSanjeev. Views are personal. Disclosure: The columnist is a trustee of the Lal Bahadur Shastri Memorial (LBS Museum). (Edited by Aamaan Alam Khan)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store