Lok Sabha Question No. 2619 (UNSTARRED), answered on 2024-12-11
Subject: Corruption in Public Distribution System
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Subbarayan K, Com. Selvaraj V

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED  QUESTION  NO.2619 TO BE ANSWERED ON 11 TH DECEMBER, 2024

## CORRUPTION IN PUBLIC DISTRIBUTION SYSTEM

2619. SHRI SUBBARAYAN K: COM. SELVARAJ V:

Will the Minister of CONSUMER  AFFAIRS,  FOOD  AND PUBLIC DISTRIBUTION w'ftnr wd,  um 3#rtrT§#fiq ti6wr ++ be pleased to state:

- (a) whether Government's attention has been drawn to  a report made analyzing data from the Household Consumption Expenditure Survey (HCES) and Food Corporation of India  (FCI's) monthly off  take numbers from August 2022 to  July 2023 wherein it  is estimated that nearly  28%  of  foodgrains  supplied by  FCI  and State Governments never reached the intended beneficiaries and the economic loss to the exchequer is estimated to be more than Rs. 69,000 crore;
- (b) if  so, the details thereof;  and
- (c) the details of the reforms proposed to be made to address the corruption in the public distribution  system?

## ANSWER

MINISTER  OF STATE FOR MINISTRY  OF CONSUMER AFFAIRS. FOOD & PUBLIC DISTRIBUTION

(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)

(a) to (c): The Targeted Public  Distribution System (TPDS)  is governed under National Food  Security Act  (NFSA),  2013  and it  is  operated under the joint responsibility  of  the Central and the State/ Union  Territory  (UT)  governments. The operational responsibilities for  allocation  of  foodgrains within  the States/ UTs,  identification  of  eligible  beneficiaries, issuance of  ration cards to them, distribution of  foodgrains to the eligible beneficiaries under TPDS, issuance of  license to  the  Fair  Price  Shop dealers, supervision over and monitoring  of functioning of Fair Price  Shops (FPSs) etc. rest with  the concerned State/ UT Governments.

The report  of  28% food  grains do not  reach beneficiaries erroneously conflates offtake and distribution.  Offtake refers to the quantity of food grains lifted by the States from the Central depots, while distribution represents the delivery of these grains to the beneficiaries. Offtake figures also  account for stocks  in transit, buffer allocations, operational reserves and stock for  OWS (other welfare schemes) which are not immediate]y distributed to the households. By  failing  to account for these distinctions, the report's leakage estirnates are fundamentally incorrect.

Under the  technology driven  Public Distribution  System (PDS) reforms, ration cards/beneficiaries database have been completely  digitized  in  all  States/VTs also 99.8% Ration Cards are seeded with  Aadhaar number at national level. Foodgrain distribution  is OFcrationa]ised through 5.41 lakh e-PoS devices, covering nearly all Fair Price shops in the country. These e-PoS devices . enable Aadhar authentication of  beneficiary during distribution process enabling principle  of  rightful targeting. About- 98%  foodgrain distribution is being done through Aadhaar authentication, reducing leakages to ineligible beneficiaries  and ensuring rightful  targeting.

88++