Lok Sabha Question No. 4343 (UNSTARRED), answered on 2025-03-26
Subject: Frauds in PDS
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri T R Baalu

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRiBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED  QUESTION  NO.4343

## TO BE ANSWERED ON 26TH MARCH, 2025

## FRAUDS IN PDS

## 4343. SHRI T R BAALU:

Will  the Minister of CONSUMER AFFAIRS, FOOD AND  PUBLIC DISTRIBUTION be pleased to state:

- (a) whether attention of  the Union  Government has been drawn to  the news item titled Rs.69,000 crore losses to the Government due to frauds in PDS; Rs. 2000 crore worth rice and wheat vanished published  in  Tamil  Dairy  DINAMALAR, Chennai dated  19th November, 2024 ;
- (b) if  so, the details and the facts thereof;  and
- (c) the punitive actions being taken to bring the culprits involved in  this  heinous and unprecedented crime to book?

## ANSWER

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

(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)

(a) &  (c): The  Targeted Public  Distribution  System (TPDS) is  governed under National Food Security Act  (NFS A),  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  food  grains  within the  States/ UTs,  identification of  eligible  beneficiaries, issuance of ration cards to them, distribution of food grains 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.

.....2/-

P

The said news titled 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 immediately distributed to the households. By failing to account for these distinctions, the report's estimates are fundanrentally incorrect.

Under the  technology driven  Public Distribution System (PDS) reforms, ration cards/beneficiaries database have been completely  digitized  in  all  States/UTs. Also  99.8% Ration Cards are seeded with Aadhaar number at national level. Foodgrain distribution is operationalized 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.

If  any person contravenes any of  the provisions of the TPDS (C)  Order, 2015, shall be liable to punishment under section 7 of the Essential Commodities Act,  1955. Thus. the Order ernpo\'/ers StateF,JT Governments to take punitive action in case of contravention of the relevant provisions  of these Orders.

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