January 12, 2010

PDS in Andhra Pradesh

APPSC GROUP  1 Material - Useful Links - Full Notes
Public Distribution System is a major instrument for ensuring availability of food grains to the public at affordable prices as well as for enhancing food security for the poor. While the agricultural production in the state mainly cereals, rice, Jowar, Maize, etc the staple food is primarily rice though wheat is also consumed.
The Central schemes such as "Annapurna" (for oldage pensioners) and Anthyodaya Anna Yojana (AAY) (for poorest of the poor) are also under implementation in the state from May 2000 and February 2001 respectively.
The objectives of PDS
1.  To ensure regular supply of essential commodities of main      consumption like; rice, sugar, kerosene, wheat etc. at reasonable      prices through FP Shops.
2.  To ensure social justice by providing food security for the poorest of      the poor in rural and urban areas by making available food grains      at cheapest rates.
3.  To provide food security to more senior citizens, who, though eligible      have remained uncovered under National Old Age Pension Scheme      (NOAP Scheme).
4. To asses the efficiency in procurement and handling the food grains      towards storage, transportation and delivery.
APL                                                                     APL
BPL                                                                     BPL

Antyodaya Anna Yojana scheme is being implemented in Andhra Pradesh since April 2001 as per the guidelines issued by the Government of India from time to time. 35 kgs of Rice at the rate of Rs. 3.00 per kg per month to each card/ family is being supplied under this scheme. As on date 15,57,800 beneficiaries are covered under this scheme and a quantity of 54,523 MTs of rice is being allocated by the Government of India every month.
According to the guidelines of the Govt of India, the eligibility criteria for Identification of the beneficiaries would be from amongst the following priority groups :-
I.Landless agriculture labourers, marginal farmers, rural artisans /   craftsmen such as potters, tanners etc., and persons earning their   livelihood on daily basis in the informal sector.

II.Households headed by widows or terminally ill persons / disabled     persons/ persons aged 60 years or more with no assured means of      subsistence or societal support.

III.Widows or terminally ill persons or disabled persons or persons aged 60 Years or more or single women or single men with no family or societal support or assured means of subsistence.

IV.All primitive tribal households.

Annapurna Scheme" is being implemented since May 2000 in Andhra Pradesh. The scheme aims at providing food security to indigent senior citizens, who are though eligible, but remained uncovered under National Old Age Pension Scheme.
A quantity of 10 Kgs. of food grains (rice) is provided per month free of cost to the beneficiaries covered under the scheme. The beneficiaries were identified during Grama Sabha as per the following guidelines prescribed by the Government of India.
1. The age of the applicant (male or female) should be 65years or above.
2.The applicant should be a "destitute" in the sense of having little or no regular means of subsistence from his/her own source of income or through financial support from family members or other sources.
3.The applicant should not be in receipt of pension under National Old Age Pension or State Pension Scheme.
93,200 indigent senior citizens, who are eligible for pension under National Old Age Pension but are not getting the pension, are covered under Annapurna Scheme and are being supplied 10 kgs. of rice free of cost every month. An amount of Rs.5,20,43,000 is provided in the budget for the year 2006-07
The Govt. of India has been allotting kerosene for the Public Distribution System. After introduction of LPG connections to BPL women under Deepam Scheme, Government of India used to reduce Kerosene @ 5 lts. per connection upto 2004. Thereby the allotment of kerosene has been reduced from 72,800 Kl per month in July 1999 to 51,833 Kl per month. The per month allocation has been enhanced to 55,368 Kl from April, 2005 onwards (3535 Kl per month increase). On the request of the State Government not to link up the allocation of PDS K.Oil with the LPG connections released under Deepam Scheme, the above increase has been considered by the GOI. The further request for increase in the monthly allocation of PDS K.Oil by 16477 Kl per month is still pending with the Govt. of India
The PDS Kerosene is released by the Government of India through Public Sector Undertaking Oil Companies i.e., IOC, HPC, BPC and IBP. Each company has appointed the required number of wholesale dealers for each district. The wholesalers lift K.Oil from the Oil Depots tagged on to the wholesale point. Basing on the allocation of the District Collector to Mandals and re-allocation by the concerned M.R.O. to the Fair Price Shop Dealers, the whole sale dealers are delivering the kerosene to the Fair Price Shop Dealer / Nominated Retail Dealers. The district-wise number of Fair Price Shop Dealers / Nominated Retailers distributing Kerosene are shown in Annexure- II. The end consumer price of Kerosene is Rs.9.75 per litre. The margin being paid to the F. P. Shop / Retail Dealer per litre is Re.0.25.P. w.e.f 1-10.07
The Kerosene is distributed at an end consumer price of Rs.9.75 per litre in the entire state w.e.f 1-10.07. Taking into account the distance and other aspects, the wholesalers are required to deliver at Rs.9.50 per litre to the F.P.Shop/ Retail Dealer. They have to deposit the difference if the actual costing works out to less than Rs.9.50 per litre. If the rate works out to more than Rs.9.50 ltr, such wholesale dealers will be paid the difference amount. The deposit and payment is being monitored by the Joint Collector.
The kerosene wholesale dealers are paid transport charges for kerosene taking into account the distance from Oil Company Storage Point, Ex-Depot Price, Sales-Tax, Return on Capital Investment, Return on Equipment, Leakage, Operational Expenses and Second Stage Transport Charges from wholesale Depot to Retail Point
PDS Kerosene being heavily subsidized product is diverted for adulteration into diesel and also for vehicular fuel / industrial purposes. It is also noticed that the K.Oil is being used clandestinely for running of mechanized boats for fishing in deep sea. The illicit use of K.Oil in fishing boats is not only depriving the poor card holders of the subsidy benefits on Kerosene and the poor fishermen on country boats of their livelihood but also causing pollution in the sea.
To check diversion of PDS K.Oil, instructions have been issued to all the Collectors for constituting Task Forces consisting of the of the officials of Revenue, Police, Civil Supplies, Legal Metrology and representatives of Oil Companies for inspections of the Wholesale points and other places and to send progress report every month. In addition, under the supervision of the Controller of Legal Metrology, (35) mobile laboratories are functioning to check the malpractices by the Kerosene wholesale dealers and petrol/diesel outlets. The Oil Companies also conduct regular/ surprise checks of their petrol/ diesel outlets by deploying their mobile laboratories. Government of India have also been requested to ensure that there is atleast one mobile lab in each district and two in Hyderabad city. They have also been requested to strengthen the infrastructure facilities in the existing labs of the Oil Companies
The scheme has been launched on 2.10.2005 as suggested by GOI covering (86) wholesale points in all the Districts except. Hyderabad & Prakasam. The State Government has also requested to cover 17 more wholesale points. The scheme is on pilot basis and being getting evaluated by the GOI.
Under the Scheme, the underground tanks / electronic dispensing pumps / empty barrels / shed for storing barrels and barrels to Retailers / F.P.Shop dealers has to be provided by the Oil Companies at their cost. The transportation of PDS kerosene from Oil Depot to the underground tank of the whole saler and from whole sale point to the Sub-Wholesale point is organized by the Oil Companies at their cost.
Under the Scheme, a new tier of Sub-wholesalers have been introduced, who will be selected by the concerned wholesale dealers, will lift the kerosene allotted to the F.P.Shop dealers / Retailers in the barrels with special logo "Jana Kerosene Pariyojna" and will deliver the same to the F.P. Shop dealers / Retailers by transporting in the vehicle engaged by the sub-wholesale dealer with a special logo of "Jana Kerosene Pariyojna" The GOI have extended the periodicity of implementation of the scheme upto December 2007.
To meet the requirement of Kerosene for other than PDS the Free Trade Kerosene is being made available by the Oil Marketing Companies through the Andhra Pradesh State Civil Supplies Corporation Ltd., who is lifting/ storing / transporting / distributing the FTK at all the district headquarters since March/April, 2005 .
Discussions are in progress to make available the FTK at Divisional/Mandal Headquarters to cater to the needs of small and petty vendors by selecting / appointing private persons to deal with the FTK .
Sugar is being supplied to the BPL card holders including AAY at Rs.13.50 per kg. @ 1 kg. per card per month. There is no subsidy from the State Government side. Sugar being an essential commodity, Government of India has been requested to review the existing scale of supply of sugar to BPL families and to increase the same from the present 500 gms. per capita per month to 1 kg. Presently, 9,690 tonne of sugar is allotted to Andhra Pradesh as per the above scale. If it is to be doubled, the additional requirement will be 9,690 tonne per month. Thus, the Government of India have been requested to increase the allocation of PDS sugar to 19,380 tonne per month But not considered by GOI.
At present a Quantity of 17,715 MTs of levy Sugar per month is being released duly meeting the balance requirement from the closing balances available with the APSCSCLTD and the revalidation orders from the GOI for the unlifted quantity of previous months allocations.
Wheat is supplied to all the card holders at Rs.7/- per kg. upto 35 kgs. per month. The FCI issue price is Rs.6.10 per kg. Transport & Handling charges and dealer's margin is Rs.0.90 per kg. Thus, the State Government is distributing the wheat at economic cost to the consumers.

As recommended by the Group of Ministers constituted for revamping the Public Distribution System, the Government vide G.O.Ms.No.65, dt: 10.06.2005, has issued orders for supply of fortified / enriched wheat flour (with Vitamin 'A', Folic Acid & Iron) in the urban areas of Hyderabad, Ranga Reddy & Warangal districts on pilot basis. The rate fixed for supply of Enriched Wheat Flour through the PDS outlets i.e. F.P.shops is on no profit no loss basis as follows

Package size
End Consumer Price Rs.
Margin to dealer Rs.
1 kg. Pack * 10.00 0.50
3 kgs. Pack 33.00 3.00
5 kgs. Pack 53.00 5.00
*:The end consumer price of one Kg pack of enriched wheat flour has been redused from rupees 12/-to Rupees 10/-per Kg and dealer's margin from rupees one to 0.50 Paise per Kg wef 2-9-2006 as ordered in GO Ms No 111 dated 2-9-2006 dualy extending the scheme to the urban areas of karimnagar,Nizamabad,khamman,Medak,Mahabubnagar,Nalgonda and Kurnool Districts.Since this scheme is on pilot basis,only one Kg packet are being made available to the consumers
As the scheme is on pilot basis, only 1 kg. packets are being manufactured now. The Scheme is intended to avail the central subsidy provided on the APL price of the wheat issued by the FCI in the larger interest of improving the nutritional intake in consumption of cereals and to improve the economic viability of F.P.shops and also to bridge the gap of deficiency of these components as mentioned above since a study conducted by the National Institute of Nutrition has revealed that in most parts of the State, the vulnerable sections of the population, particularly, i.e. children, pregnant women, lactating mothers and adolescent girls are suffering from the deficiency of Vitamin 'A', Folic Acid and Iron.
The above Scheme has been launched by the Hon'ble Chief Minister at Hyderabad on 5.11.2005 during the Week long Celebrations on the eve of Golden Jubilee of A.P State Formation
The assurance of GOI for releasing of 250 MTs of APL Wheat per month for this purpose has not been materilised so far.The releasing of imported red colour wheat under PDS from February/March-2007 onwords has been hampered the production and distribution of enriched wheat flour,as the consumers are not accepting the reddish wheat flour made out of the imported red colour wheat.


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