Wadhwa Committee recommends abolishing APL category for PDS, published on January 14, 2013

Wadhwa Committee recommends abolishing APL category for PDS

Justice D P Wadhwa Committee, appointed by the Supreme Court to study PDS, also recommends formation of Civil Supply Corporation in every state and UT apart from computerisation of PDS operations

Remove cap on BPL number, review the list every year

By Kartik Lokhande 

Do not get surprised if the category of above poverty line (APL) is abolished from the operations of public distribution system (PDS). With rising prices of essential commodities, chorus for universalisation of PDS is growing. However, in its report submitted to the Supreme Court of India on January 7, the Central Vigilance Committee headed by Justice (retd) D P Wadhwa has recommended abolition of APL category.

The committee was appointed to look into PDS related issues and submit a report. Accordingly, the committee has submitted its report in which it has recommended abolition of APL category. The report offers reasoning that many APL families do not lift their PDS ration from fair price shops, and this foodgrain is diverted into black market. “APL category should be abolished as it is a source of diversion of foodgrains into the black market,” states the report. It has left the decision to the Supreme Court and has observed that if it is not possible to abolish APL category, the number of APL households should be limited to those with annual income of Rs 1 lakh. This new category should be called ‘Marginally Above Poverty Line’, and even the income limit can be raised to Rs 2 lakh to Rs 3 lakh per annum.

Interestingly, the Central Government in its affidavit before the Supreme Court stated that allocation for APL category might be continued ‘till finalisation of proposed law on food security.’ If this is any indication, with passage of law on food security, APL category may become thing of the past. This may leave in lurch countless many who are included neither in below poverty line (BPL) category due to slightly upper income limit, nor in creamy layer.

Justice Wadhwa Committee has made two recommendations for long-term implementation namely formation of Civil Supply Corporation, and computerisation of PDS operations. In the committee’s own observation, “Diversion of PDS foodgrain in black market deprives the genuine beneficiary to get his allotted quantity of foodgrain. Choice is thus between a corrupt fair price shop functioning and State itself taking over the functioning of FPS.” Backed by this thought, the committee has recommendation constitution of Civil Supply Corporation in every state. It is proposed to be an independent body to distribute PDS foodgrain at fair price shop (FPS) level and take over existing FPS. Headed by a senior IAS officer, the Corporation should run FPS and have a number of trucks fitted with GPS that can also serve as mobile FPS at times. Once the Corporation is established, all intermediaries like wholesalers in some States must be abolished, the committee has recommended.

It has recommended several short-term measures also. These include identification of beneficiaries/inclusion and exclusion errors, storage capacity, transportation of PDS foodgrains, viability of FPS, strengthening accountability and monitoring mechanism, allocation of foodgrain in accordance with number of members in a family, strengthening vigilance and enforcement, elimination of bogus and fake ration cards, electronic weighment, and special measures for poorest districts in the country.

One more important recommendation is removing cap on number of BPL families. “Lists of BPL and AAY families should be reviewed every year for the purpose of deletion and inclusion of families,” the committee suggested.

Dal Bhat Kendra

The committee under Justice (retd) D P Wadhwa has proposed a scheme for providing cooked food to the poorer segments of the society ‘at nominal cost of free’ in backward districts of the country. For the purpose, help of corporates/PSUs working in these areas should be taken under Corporate Social Responsibility programme. The scheme titled ‘Dal Bhat Kendra’, envisages that community kitchens should be run in selected urban and rural areas at District Headquarters like the Collectorate, city hospitals, bus stops, or cooked food should be provided through vans in pockets inhabited by poor and vulnerable people. The respective district administration should be enstrusted with responsibility of creating necessary infrastructure for these kitchens, and the Government should provide foodgrains at highly subsidised rates.

Free Food Coupons

The report also suggests that free food coupons should be kept with each Gram Panchayat in all poorest and backward districts to meet any emergency situation and offer food to persons who do not fall under Annapurna Anna Yojana and are living in state of penury, and are unable to obtain foodgrains by their own means. In emergency, Gram Panchayat/Tehsildar/Sub Divisional Magistrate may issue these coupons to affected persons entitling them to receive 10 kg foodgrains per coupon per month free-of-cost. At the end of the month, coupons distributed will be replenished nad fair price shop dealer shall be provided additional food grains, recommends the report.

Committee observes...

• PDS has not yielded benefits to the extent intended. This is on account of various reasons viz. collusion between persons involved in PDS supply chain resulting in leakage and large-scale diversion of foodgrains.

• Corrupt implementing machinery and all in all a sleepy and sloppy programme where there is freedom to play with its great objectives with impunity to derive unlawful pecuniary benefits.

• It is apparent that the process of computerisation is distressingly slow and urgency is not being shown by the States. As the things stand, it may take even five years towards computerisation.

• On paper, there are many vigilance committees to monitor the distribution of foodgrains. But, on ground, these committees are non-functional and almost defunct. There is no check on the foodgrains brought by the FPS dealer or suplied to the Stat by FCI and distribution thereof to the beneficiaries.

• The cases of diversion or black-marketing of PDS foodgrains either by FPS or by transporter or by the officials of the department should be tried under these (Essential Commodities Act, Public Distribution (Control) Order, Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act) Acts. Fast track courts should be set up to try offences under these Acts.

• Bogus/fake/ghost ration cards are in circulation in almost every State and it is a major source of diversion of precious PDS foodgrain. This fact is well-known to the FPS owner and officials of the department.