Chapter 8: In conclusion: rural households of Assam require continuous food based interventions provides a commentary on the role and significance of food based welfare
4.1 ORGANISATIONAL STRUCTURE OF PDS IN ASSAM
Chapter 4
Functioning of Targeted Public Distribution in Rural Assam: 1997 to 2013-14
This chapter discusses the functioning of the public distribution system (PDS) in Assam with particular focus on the period 1997 to 2013-2014. The PDS is by far, the largest demand side food distribution programme, where the burden of subsidy is borne by the Central government. While food in India is both a Union and State subject, PDS is largely centrally funded, with the burden of distribution on the states. The PDS in Assam is almost entirely centrally funded. The price of PDS foodgrains in Assam is decided by the State government and it varies with the geographical terrain. Therefore Assam follows some form of geographical targeting as well as narrow targeting based on above and below poverty line population. At present rice, kerosene and small amount of wheat is distributed to the beneficiary households. Distribution of levy sugar has stopped since 2013. This chapter discusses rice distribution, as currently rice is the main food item distributed through PDS in the state.
Section 4.1 depicts the organisational structure of PDS in Assam. Section 4.2 discusses the extent and spread of fair price shops. Section 4.3 throws light on identification of PDS beneficiaries and Section 4.4 elaborates on the current state issue price of rice in different regions of Assam. I conclude this chapter with a summary on the characteristic features of targeted public distribution system of Assam.
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FCS & CA is the nodal agency. In the plains districts PDS functions under the direct orders of the District Commissioners through the offices of Deputy Director or Assistant Director. In the autonomous council districts PDS functions under the direct control of Council Head of Department through the offices of Deputy Director of Assistant Director as the case maybe. The directorate of FCS & CA is directly responsible for implementation of all Acts/Rules and orders of Central and State governments in all districts of the State through the above mentioned functionaries. Figure 4.1 provides a flow chart of organizational structure in Assam.
At the district level the official in charge of PDS is known as the District Civil Supplies officer, block level functionary is known as Sub-divisional food and supply officer, at the gram panchayat level the secretary is responsible for distribution to the fair price shops.
The fair price shops in Assam are mostly private dealers who are finally responsible for distribution of PDS commodities to the rural households.
The GoA has entrusted the responsibility of distribution of PDS items to co-operative societies after late 1970‘s. Since then, the co-operative societies (or Samabay Samities) have been playing a major role. Among the various types of co-operative societies, Primary Agricultural Co-Operative Societies (which works at the Gram Panchayat level and also known as Gram-Panchayat Samabay Samities or GPSS) plays a major role. The other distributing agents are Whole Sale Co-operatives in the urban areas and Large Area Multi Purpose Societies in Hill areas. Among the multiple tasks that the GPSS performs, one of them is to provide credit support to the farmers. But over the years, these GPSS faced losses due to defaults, managerial inefficiency and contraction of the state government‘s budgetary support. Currently GPSS engage mostly in distribution of PDS commodities.
Official rate of transportation fee and profit margin to be charged by the GPSS from the consumer is fixed by the GoA. This profit margin for rice and wheat was fixed at 2.5per cent for the wholesale co-operative in the urban areas and 5 per cent for GPSS in rural areas for both APL and BPL households from June 1995 to till July 2001. The same charge was revised to 3.10per cent in urban areas and 6.29per cent in rural areas since July, 2001 and it remained so till 2015 (Departmental circulars, Government of Assam).
Due to non-revision of margins for the GPSS‘s, they have had to depend on loans from banks and private traders. In the more recent times banks have refused to grant loans and therefore many GPSS take loan from private traders to purchase PDS rice from the Food Corporation of India (FCI). Many GPSS in the state have had to close down PDS shops due to heavy losses.
For storing of PDS commodities the Government of Assam (GoA) had constructed many go downs for the GPSS in 1974. Since then the GoA has from time to time granted funds for godown construction, purchase of vehicles and repayment of loan overdue amount to save many dormant GPSS which were unable to repay their bank loan. Apart from profit margin to the GPSS, at present, the GoA is also providing an amount of transportation fee of Rs30 per quintal of rice for carrying AAY rice and wheat by the GPSS. However the GoA is irregular in providing this amount and therefore the final consumers have had to bear the burden of increasing ‗transport costs‘.20
State level procurement of paddy for PDS took place in the state through Assam State Federation and Food Corporation of India in the 1970s. This system of procurement continued till the beginning of TPDS. With the new policy of targeting, GoI introduced
20Issues regarding dormant GPSS‘s and increasing transportation costs hampering PDS functioning was discussed with various officials at the Department of Food and Civil Supplies in 2014, in Guwahati, on grounds of anonymity.
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decentralised procurement system with the objective of enhancing efficiency in the PDS system. Since then 15 major states of India started following this system, however Assam withdrew from state level procurement processes. Therefore, Assam depends entirely upon the central pool for public distribution. Presently, FCI and Assam Food Civil Supply and Consumer Affairs (FCS & CA) department are the key agencies involved in distribution of PDS items in the state. The state government calculates the amount of allocation of foodgrain to the beneficiaries, fixation of end consumer price on the basis of transportation charge and commission of the GPSS and FPSs.
Figure 4.1 Flow chart of organizational structure of PDS in rural Assam