NEW DELHI: A Parliamentary panel on the ‘Modernization of the Public Distribution System (PDS)-Strengthening Technical Data Base’ has recommended the verification of 2.91 crore suspected ineligible beneficiaries under the National Food Security Act. Additionally, it has suggested sustained verification drives to ensure the prompt inclusion of eligible households, particularly among vulnerable groups.
During the data analysis, it was found that there are 2.91 crore suspect beneficiaries identified under various red-flag categories. This includes 5.60 lakh beneficiaries who are over 100 years of age and 2.12 lakh single-member ration cards held by beneficiaries under 18 years old. Further analysis indicates that around 2.2 crore are silent ration cards, 30.07 lakh are duplicate beneficiaries, and 34.13 lakh are deceased beneficiaries according to their Aadhaar status.
In light of the government's efforts to modernize the PDS and create institutional frameworks, the committee recommends that the verification of these red-flag beneficiaries be completed in a time-bound mission mode with mandatory on-field investigations. At the same time, it is crucial to implement robust safeguards and grievance redressal mechanisms to prevent the wrongful exclusion of eligible beneficiaries.
Regarding connectivity issues at Fair Price Shops (FPS), despite 99.6% of them being automated with ePoS devices and over 98% of monthly allocated food grains being distributed through biometric authenticated electronic transactions, the committee recommends that the Department, in coordination with state governments, develop a focused action plan for no-network and difficult-terrain FPSs. This plan should ensure uninterrupted distribution through reliable offline synchronization, alternative authentication methods, and improved last-mile connectivity.
The committee chaired by Kanimozhi Karunanidhi out that the One Nation One Ration Card (ONORC) initiative could undermine the financial viability of FPSs. It noted that the Department has supported FPSs by providing an additional dealer margin of Rs. 21 per quintal for states and Rs. 26 per quintal for Special Category States, along with permission to expand the range of commodities and services offered.
Therefore, the committee recommends that the Department strengthen the viability and accountability of FPSs by expediting the linkage of ePoS with weighing machines, improving grievance traceability, ensuring regular meetings of vigilance committees, publicly displaying action taken reports, and encouraging supplementary citizen-centric services at FPSs without undermining their core role in food security.
Additionally, the committee noted that the cash transfer scheme under the NFSA framework has been operational in Puducherry and Chandigarh since September 2015, and in part of Dadra and Nagar Haveli since March 2016. The committee recommends that the Department conduct a structured and periodic comparative assessment of the Direct Benefit Transfer (DBT) cash transfer model in these Union Territories compared to physical distribution.
This assessment should consider parameters such as beneficiary convenience, adequacy and timeliness of subsidy, grievance levels, transparency, and exclusion risks before considering a wider implementation of the DBT model. The committee should also be informed of the outcomes of this study.