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Food grains, kerosene not reaching beneficiaries as they should: CAG

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In an indictment of the food security system, Comptroller and Auditor General (CAG) has pointed to the lacunae in public distribution system (PDS)--nonavailability of grain to beneficiaries, poor oversight and possibilities of diversion into open market.

Under PDS, beneficiaries get rice, wheat, sugar, edible oil, turdal and kerosene. To strengthen PDS, Government of India in June 1997 introduced 'Targeted PDS system' under which 35kg of food grain is issued per month at subsidised rate to BPL families.

In 2000, Annapurna Scheme was set up for giving 10kg food grain a month free-of-cost to senior citizens eligible for old age pension but not getting it; in December the same year, Antyodaya Anna Yojna (AAY)--35kg of grains at subsidised rates to the very poor.

"Functioning of TPDS had several deficiencies. Identification of BPL families was faulty—enlisting ineligible families and leaving out those not eligible. Ration cards were issued on self declaration and affidavits.... Non-lifting of food grains from FCI led to BPL beneficiaries being deprived of benefits, there was avoidable expenditure on purchase of rice from open market," the report noted.

"Quality of FCI food grains was not tested. Targeting of beneficiaries for distribution of PDS kerosene was not effectively linked to number of gas cylinders held or piped-gas connection. Direct transfer of cash subsidy on kerosene (scheme) lagged behind; implementation of vehicle tracking system was not effective. There were shortfalls in inspection of godowns, fair price shops and ration cards."

A huge number (97%) of vehicle tracking systems (in vehicles and tankers) didn't function, ensuring that "the objective of curbing leakages/diversion of PDS KO (kerosene oil) was not achieved."

CAG also suggested reviewing the list of BPL beneficiaries under TPDS annually to weed out ineligible beneficiaries. There should be realistic budgeting of subsidy on food grains and efforts should be made to ensure that the entire quantity of food grains allocated by Centre is lifted and joint inspections held to ensure quality of food grains.

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