Targeted Public Distribution System (TPDS)
-Targeted Public Distribution System (TPDS) was introduced with effect from June1997.
- The focus of the Targeted Public Distribution System (TPDS) is on “poor in all areas” and TPDS involves issue of 10 Kg of food grains per family per month for the population Below Poverty Line (BPL) at specially subsidized prices.
-The TPDS requires the states to
1. Formulate and implement foolproof arrangements for identification of poor,
2. Effective delivery of food grains to Fair Price Shops (FPSs).
3. Its distribution in a transparent and accountable manner at the FPS level.
-The “Targeted” means that the focus is really poor and vulnerable sections of society.
So we can say that “Since 1997 the PDS in India has become pro-poor.
But how to identify, who is poor and who is not?
-The identification of the poor under the TPDS is the responsibility of the State
governments. They identified as per the State-wise poverty estimation of the Planning
Commission for 1993-94. These estimates are based upon “Lakdawala formula”.
What is Lakdawala formula?
-Poverty estimates of states in India by planning commission are estimated by the
formula developed by late Prof. Lakdawala Committee.
-In Lakdawala formula, the following indices have been used in estimation of the poverty in states:
1. Urban Poverty: CPI-IL (Consumer Price Index for Industrial Laborers)
2. Rural Poverty: CPI- AL (Consumer Price Index for Agricultural Laborers)
How allocation is made to the states?
-Allocation of food grains to the States/UTs was made on the basis of average
consumption in the past. It was average annual off-take of food grains under the PDS
during the past 10 years at the time of introduction of TPDS.
But, since TPDS is pro-poor, what happened to the APL (Above Poverty
Limit) who were purchasing from the FPS?
-The states are allowed in excess of the requirement of the BPL families and the TPDS
allocation. This is called “Transitory Allocation” and it was meant for APL (Above
Poverty Limits).
-The objective of this allocation was that, the sudden withdrawal of the APL families from the TPDS was not desirable. The prices of the Transitory Allocation are higher than the BPL prices.
What is the current allocation to the BPL families under TPDS?
-The earlier allocation was 10 Kg. per month, which was increased this to 20 Kg. per
family per month at 50% of the economic cost in April 2000. This was further increased to 25 kgs in 2001.
-The quantity of food grains available under TPDS has been increased from 25 kg. per month per family to 35 kg. Per month per family with effect from April 2002. This continues till date.
Who fixes the end retail prices?
-The end retail prices or Consumer End Prices (CEP) are fixed by the State Governments or UT administration.
-The government issues the PDS commodities on CIP (Central Issue Price) and the state government fix the Retail price after taking into consideration the margins for wholesalers/retailers, transportations charges, levies, local taxes etc. The states government are requested to not to have a difference of over 50 paise per kg.
Is any rate fixed for Antyodaya Anna Yojna?
-The states cannot interfere with the price issued by the government for AAY in which
the end retail price is to be retained at ` 2/ a Kg. for wheat and ` 3/ a Kg. for rice.
Is TPDS not working in any states?
-TPDS is working in the entire country.
What is the quantity of the allocation under TPDS at centre Level?
-The following table shows the allotment and lifting by the states under the TPDS for
recent years .
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