Is Bengal s PDS doing well

Is Bengal’s PDS doing well?

• This presentation is based on the findings of the sample surveys on the Public Distribution System (PDS), conducted in rural West Bengal and six other states • Focus is on the performance of the Public Distribution System after the implementation of the National Food Security Act (2013) • Conducted by student investigators in June ’ 16, July ’ 16 and September ’ 16 under Prof. Jean Dreze and Dr Reetika Khera • Investigators went from house to house and enquired about people’s ration cards, PDS (Public Distribution System) food grain purchases, and related matters

The Survey: West Bengal • 7 states- Chhattisgarh, Madhya Pradesh, Odisha, West Bengal, Bihar, Jharkhand Tripura • The sample villages in West Bengal: Bankura- Machila, Surbhaga Band, Kiasol and Dhobargram Birbhum- Chak Dhara, Beran and Paikpara • Within a sample village, the investigators covered all households • In West Bengal, 618 households and 2, 997 individuals were covered

Bengal’s PDS before NFSA • Evolution of the Public Distribution System PDS, till 1992, was untargeted RPDS (1992) to improve the reach Launch of TPDS (1997) and AAY (2000) with specific target • Bengal’s PDS before NFSA PDS leakages: 81% (2004 -05) PDS leakages: 65% (2011 -12) Food security coverage (BPL and AAY) 48% before NFSA.

National Food Security Act (2013) • Objective: Food and nutritional security • Coverage: Upto 75% (rural population) and 50% (urban population) • West Bengal: 2015 Category Foodgrain Entitlement (in kgs) Price (per kg) Priority, Special Priority 5 person and RKSY-1 Rs. 2 (Rice), Rs. 3. 50 (Atta) & Rs. 2 (Wheat) Antyodaya Anna Yojana 35 per household Rs. 2 (Rice) & Rs. 2 (Wheat) RKSY- 2 Rs. 9 (Rice) & Rs. 13 (Atta) 2 person

Household Checklist (Part 1)

Household Checklist (Part 2)

Selected Survey Findings: West Bengal • Food Security Coverage Proportion of sample households with a ration card (%) [Before NFSA (BPL, AAY)] West Bengal 48 Proportion of sample households with a ration card (%) [After NFSA (PHH, SPHH, RKSY-1, AAY)] 87 Source: House-to-house survey of 618 households in 7 randomly selected villages in two districts

Selected Survey Findings: West Bengal • Entitlements and Actual Purchases Average Purchase of PDS foodgrains, as % of entitlments (preceding month) West Bengal 94 Average Purchase of PDS foodgrains, as % of entitlments (normal month) 95 Notes: All households under Priority, Special Priority, RKSY-1 and AAY are considered “Entitlements” refers to what a household is entitled as per its ration card Source: House-to-house survey of 618 households in 7 randomly selected villages in two districts.

Selected Survey Findings: West Bengal • Exclusion (“missing names”) and Quality of PDS Grain Proportion of “missing names” in ration cards (%) West Bengal Proportions of households who felt quality of PDS grain is “good” or “fair” (%) 12 54 Notes: Priority, Special Priority and RKSY-1 households are considered; missing names = household member not received the card Source: House-to-house survey of 618 households in 7 randomly selected villages in two districts.

Case Study: Dhobargram • House-to-house survey (2015): 29 households with BPL or AAY card • House-to-house survey (July, 2016): 91 households on NFSA list • Major gains are possible if the NFSA is well implemented!

NFSA Survey 2016: Selected Findings Proportion of sample households with a ration card (%) (after NFSA) Average purchase of Proportion of PDS food grains, as “missing names” in % of entitlements ration cards (%) (normal month) Tripura 63 99 11 Chhattisgarh 95 97 15 Odisha 88 99 8 Madhya Pradesh 84 98 6 West Bengal 87 95 12 Jharkhand 76 55 12 Bihar 83 15 17 Notes: All households under NFSA are considered. Source: House –to-house survey of 4, 179 households in 48 randomly selected villages/hamlets across 7 states.

Is Bengal’s PDS doing well? Rank according to the ‘Average purchase of PDS food grains, as % of entitlements’ Rank according to the ‘Proportion of “missing names” in ration cards (%)’ Odisha 1 2 Tripura 1 3 Madhya Pradesh 3 1 Chhattisgarh 4 5 West Bengal 5 4 Jharkhand 6 4 Bihar 6 7 Notes: All households under NFSA are considered. Source: House –to-house survey of 4, 179 households in 48 randomly selected villages/hamlets across 7 states.

Is Bengal’s PDS doing well? • Latest entrant in the league of successful PDS reformers • Expansion of food security coverage [87% (2016) from 48% (2014)] • Transparent and methodical NFSA list • Drastic simplification in the ‘entitlement’ system • Sharp decline in PDS leakages (5% in a ‘normal month’)

Is Bengal’s PDS doing well? • Exclusion error & proportion of “missing names” (12%) • Poor quality of PDS grains (54% positive responses) • Lack of accountability of private dealers • PDS licenses are even hold hereditarily! • Sustainability and consolidation of reforms?

Suggestions • Simplify the system to a 3 category system State(s) to observe: Tripura • Simplify the eligibility criteria Revise the NFSA list State(s) to observe: Odisha, Tripura

Suggestions • Improve the quality of PDS flour packets • Uniform provision of rice, a solution? • Uniform pricing (Rs 2/kg) for all PDS grains State(s) to observe: Odisha, Tripura, and Chhattisgarh • Gradual de-privatization of the PDS shops Community driven tech-based solutions, an alternative! State(s) to observe: Chhattisgarh

• Findings are tentative: Assembly elections and a small sample • Food security, a lively political issue! • PDS has improved in West Bengal, but it’s still not up to the mark. • PDS reforms, durable or short-lived? Thank you!