Introduction
Agriculture and Rural Development
Demographic Profile
Education
Employment and Unemployment
Energy
Environmental Concerns
Health
Industrial Development
Plan Outlays
Price Trends
Public Distribution System
Public Finance
Social Welfare
State Income
Trade and Commerce
Transport
Urban Development
Water Supply and Sanitation
Welfare of SC ST OBC
Public Distribution System

ECONOMIC SURVEY OF DELHI
1999 - 2000
(March 2000)

CHAPTER 19
PUBLIC DISTRIBUTION SYSTEM
1. The public distribution system (PDS), ensures the distribution of essential items such as selected cereals, sugar and kerosene at subsidized prices to holders of ration cards. The PDS also helps to regulate open- market prices for commodities that are distributed through the system.
2. In Delhi, unlike most other states, the PDS distributes commodities to all card-holders irrespective of their income group. The main items distributed through the PDS are cereals such as rice and wheat and essential items such as sugar, edible oil and kerosene. According to the Department of Food & Supplies, there were 3,214 PDS outlets in Delhi in March 1999. Of these, 2,811 outlets were in urban areas and 403 in rural areas. On an average, each Fair Price Shop handles 1,000 ration cards. The number of households in Delhi that carry ration cards increased from 23.02 lakh in 1990-91 to 33.53 lakh in 1998-99 .
3. The distribution of ration cards, cereal and sugar units and other relevant data is indicated below:
Statement 19.1
Important Indicators of PDS-Delhi
S.No. Item 1990-91 1998-99
1. No. of Cards (in ‘000’) 2362 3353
2. No. of Cereal Units (in ‘000’) 20312 30721
3. No. of Sugar Units (in ‘000’) 11866 17793
4. Fair Price Shop (in number) (i+ii) 3579 3214
(i) Urban 3299 2811
(ii) Rural 280 403
5. No. of Licensed Shops of kerosene oil 1840 2342
Year-wise details are in Table 19.1
4. The quantity of cereals and sugar allotted to Delhi and its distribution through the PDS
Statement 19.2
DISTRIBUTION of Cereals in Delhi, 1998-99
(in million tonnes)
Item Allotted Quantity Quantity Lifted for Distribution Percentage Distributed
Rice 1,64,680 1,05,831 64.3
Wheat 6,94,800 4,84,292 69.7
Sugar 1,45,478 1,45,478 100.0
NSS Survey on Public Distribution System
5. To assess the extent to which items are available to consumers through Delhi’s Public Distribution System, a sample survey (NSS-49th Round) was conducted in January-June 1993 both in the rural and urban areas. Informants were asked to provide information about the quantity and value of selected commodities purchased both from the PDS as well as from other sources in the 30 days preceding the date of the survey. Households that were not using the PDS were asked to specify the reasons. The main findings of the survey are given below:
(i) In the urban areas, 63-77% of the rice and wheat requirement was met through the PDS. In the rural areas, 71% of the requirement for rice and 54% for wheat was met through the PDS.
(ii) About 60% of the sugar requirement in both rural and urban areas was met through the PDS.
(iii) The PDS adequately met the demand for kerosene, since 86% of the kerosene purchased in the rural sector was from the PDS. In the urban sector, 78% was bought through the PDS.
(iv) An analysis of the relative use of the PDS in a cross-section of consumers represented by various fractile groups of monthly per capita expenditure (MPCE) indicated that the system was more popular with the lower and middle income groups than with the higher income groups.
(v) The purchase of atta and edible oil (in percentage terms) from the PDS was insignificant.
(vi) The main reasons consumers did not use PDS was either that they did not have ration cards or found the quality of the commodities not upto their satisfaction . When the prices in the open market are higher than through the PDS, demand under the PDS increases, resulting in increased lifting through the PDS
Table 19.1
No. of Ration Cards, Cereal Units,
Fair Price Shops, Licensed Kerosene Oil Shops


Sl.No. Item 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99
1 2 3 4 5 6 7 8 9 10 11
1. No. of Cards
(in ‘000’)
2362 2516 3 2617 2764 2845 2970 3063 3116 335
2. No. of Cereal
Units (in ‘000’)
20312 21238 22047 23124 24077 25330 26489 28103 30721
3. No. of Sugar
Units (in ‘000’)
11866 12489 13075 13796 14389 15222 15836 16444 17793
4. Fair Price Shop 3579 3555 3547 3422 3264 3183 3189 3211 3214
Urban 3299 3276 3394 3057 2894 2705 2752 2799 2811
Rural 280 279 153 365 370 478 437 412 403
5. No. of Licensed
Shops of
kerosene oil
1840 1876 1931 1958 2092 2230 2314 2319 2342
Source : Food & Supplies Department, Government of NCT of Delhi.

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 Last Updated : 23 Mar,2014