PDS - Public Distribution System

When the food security bill was passed by the union cabinet ministry, I wanted to get back home and read more about the PDS (Public Distribution System)scam in Karnataka. At times I feel the common man of this country is like helpless or is made a fool by a bunch of rulers. I can only guess and get scared where this food security bill will head with no proper storage facility for the food grains procured by the government. More food will be procured by the government to feed the poor, there by creating a shortage and price rise for the rest. With no proper storage or distribution mechanism there is a high possibility that these food grains will be sold in black creating loss to the exchequer. How it can be done, I understood by reading the investigation report of Dr.R.Balasubramaniam, who investigated the PDS scam.

The current reality is that 57% of the PDS food grain doesn't reach the intended poor people. The planning commission has identified that for every Rs4 spent on PDS only Re1 reaches the poor which meant 75% of the money spent on PDS doesn't reach the needy. It's a well camouflaged setup in the system to loot money from this country. Telling this I am not against PDS but until there is a proper mechanism to deliver, this will be a big scam.

In Karnataka the government has distributed 1.6crore ration cards while the total number of families in the state itself is 1.2crore, which means there are nearly 40lakh ghost and ineligible cards. As per the study there are around 44lakh BPL (Below Poverty Line) families in Karnataka, but the government's claim that there are 96 lakh BPL families. This means 52 lakh families who actually belonged to the APL (Above Poverty Line) are included in the BPL list and are given subsidies which they are not entitled for. Also around 5.8lakh BPL families are excluded from this list. At the wholesaler shops it is observed that weighing scales are faulty, low quality products, adulteration, no bills issued and charging higher prices for commodities.

Allocation of supplies made by the government towards in-active cards leads to over allotment loss which is estimated around 38% i.e is around Rs54 crore every month. The loss incurred due to the leakage of grains that happens at all levels of supply chain which includes wholesale transportation, at the wholesaler level, during the rural transportation is estimated to be around 39% i.e around Rs56.6 crore every month. Households not eligible to rations, but drawing rations cause active suspect losses to treasury which is estimated around 17% i.e Rs24.5Crore every month. By charging higher price to the consumers, thus stealing the benefit intended by the government 4% loss is estimated i.e Rs 5.82crore in a month.

Overall as per an estimation Rs 144.8crore is lost every month from this one state Karnataka. Now can we imagine what will happen and how much money will be looted from the country without a proper mechanism or system in place?