~I welcome all of you to this meeting, which has been organized to discuss various problems being faced in the implementation of the Public Distribution System (PDS).

Eradicating hunger is the most important task before the Nation in its attempts to overcome poverty and malnutrition. It is also the first priority of the Government. People are the most vital resource with any country and it is therefore imperative that we look after one of the most fundamental needs of the vast majority of our population. PDS is an instrument to achieve this objective.

Even though PDS is the joint responsibility of the Centre and the States, some slippages in implementation do occur on account of lack of coordination and monitoring. Honourable Members belonging to the different political parties did the right thing by bringing the problems in the implementation of PDS to our notice in the last session of the Parliament. I had assured on 5th December, 2002 that we would call an All Party Meeting to discuss this matter. Hence, this meeting today.

Friends, the Green Revolution and the consequent growth in agriculture has led to manifold increase in production of foodgrains in the country enabling India to achieve self-sufficiency. Today we are actually an exporter of foodgrains and also in a position to help others by way of food aid. The percentage of our population living Below Poverty Line has declined. Per capita availability of foodgrains has improved. We have also considerably reduced the price, and increased the quantity, of foodgrains for the poor. An important link that remains to be strengthened is the distribution of foodgrains in villages and remote areas through PDS.

Taking advantage of the huge stock of foodgrains, the Government of India has taken a number of measures in the last two years to utilize the foodgrains for the welfare of the people. Apart from the TPDS, foodgrains at Below Poverty Line rates are also being allotted to Welfare Schemes administered by different Ministries, State Governments, Non-Governmental organizations sponsored by State Governments/Ministries of Government of India. These include the Mid-day Meal Scheme, the Wheat-based Nutrition Programme, the Annapurna Scheme, the SC/ST/OBC Hostels Scheme, Nutritional Programme for Adolescent Girls, pregnant and lactating mothers etc.

A substantial portion of the food stock available has been used to generate employment in times of natural calamities. This is in the form of the Sampoorna Gramin Rozgar Yojana. A special component of SGRY has been launched to provide foodgrains to State Governments to organize employment generation programmes in drought-affected areas. During 2002-03, as many as 63.40 lakh tonnes were allocated to State Governments under the special component of SGRY. During the current year, 34 lakh tonnes have been allotted till May, 2003.

I may mention here that, never since Independence have foodgrains been made available by the Centre in such huge quantities for welfare schemes, food-for-work programmes and drought-relief and other calamity-mitigation programmes.

In order to cover the hunger-prone population of the country, we launched the Antyodaya Anna Yojana in December 2000. This scheme provides 35 kgs. of foodgrains per family per month at highly subsidized rates of Rs. 2/- a kg. For wheat and Rs. 3/- a kg. for rice. Initially it covered one crore poorest of the poor families. Recently, its coverage has been expanded to include an additional 50 lakh families from amongst the widows, terminally ill persons, disabled persons, persons aged 60 years or more, and primitive tribal groups belonging to the BPL families. This is globally the largest Food Security Programme providing foodgrains to the poor at the cheapest rate anywhere in the world.

Friends, the issue of food subsidy cannot be delinked from a discussion on PDS. Food subsidy has grown from Rs. 9,200 crores in 1999-2000 to nearly Rs. 24,000 crores in 2002-03. The purpose of food subsidy is that it should benefit the poor and the needy. Though the offtake of foodgrains under PDS has increased from 117.89 lakh tonnes in 2000-2001 to 198.00 lakh tonnes in 2002-2003, we are not sure that every deserving consumer is receiving foodgrains under PDS. Notwithstanding the allocation figures, the deficit in off-take of supplies, particularly under the BPL category, and especially in the food deficit and drought-affected States, has emerged as a major problem area.

The Government has taken all possible steps to enable that foodgrains reach the poorest of the poor. Yet, it has been observed that the offtake under BPL category has not gone beyond 55% during the last two years. This may be one of the reasons why foodgrains do not reach each and every corner of the country.

Thus, we are faced with a peculiar dilemma of surplus on the resource side and deficit on the consumption end of the production-supply chain. The Central Government has done whatever is possible within the resource limitations to enhance efficiency of the supply chain. The problem however, lies with the supply chain management at the distribution end. I have requested your presence to discuss a possible course for enhancing the efficiency of the supply chain and meet the demands of the consumer especially those belonging to the poorer sections of the society. There is urgent need to improve the situation. For this:

* There has to be close monitoring of the PDS at every stage, especially at the ~last mile~. We have to activate the vast network of nearly 4.75 lakh Fair Price Shops across the country.

* It has to be ensured that the foodgrains allotted to the States for the poorest sections are lifted by the concerned agencies, made available to the Fair Price Shops and actually issued to the ultimate beneficiaries.

* Vigilance Committees will have to be activated at FPS, Block, District and State level taking the help of civil society and NGOs.

* The PDS (Control) Order, 2001 should be strictly implemented by all the States/UTs in letter and spirit.

I seek the cooperation of all the State Governments to achieve the desired results. This is not to say that State administrations have not done their bit. It is only to emphasize the ever increasing need for better and more efficient mechanisms.

I welcome your valuable suggestions and ideas, which will serve as a useful feedback and necessary guidance for further strengthening the PDS. Let us together make PDS fully serve the purpose for which it was created –namely, as an instrument to achieve food security for the poor and the needy.

Thank you.~