PDS as it stood earlier, had been widely criticized for its failure to serve the population Below the Poverty Line (BPL), its urban bias, limited coverage in the States with high concentration of the rural poor and lack of transparent and accountable arrangements for delivery. Therefore, in June 1997, the Government of India launched the Targeted Public Distribution System (TPDS) with focus on the poor. Under the TPDS, States are required to formulate and implement fool proof arrangements for identification of the poor for delivery of foodgrains and for its distribution in a transparent and accountable manner at the FPS level.

To work out the population below the poverty line under the TPDS, there was a general consensus at the Food Minister’s conference held in August 1996, for adopting the methodology used by the expert groups set up by the Planning Commission under the Chairmanship of Late Prof. Lakadawala. The BPL households were determined on the basis of population projections of the Registrar General of India for 1995 and the State wise poverty estimates (1993-94) of the Planning Commission for 1993-94. The total number of BPL households so determined was 596.20 lakh. Thus the scheme, when introduced, was intended to benefit these poor families for whom a quantity of about 72 lakh tonnes of foodgrains was earmarked annually.

The actual allocation of foodgrains to the States/UTs was made on the basis of average consumption in the past i.e. average annual off-take of foodgrains under the PDS during the past ten years at the time of introduction of TPDS. The quantum of foodgrains in excess of the requirement of BPL families was provided to the State as ‘transitory allocation’ for which a quantum of 103 lakh tonnes of foodgrains was earmarked annually. Over and above the TPDS allocation, additional allocation to States was also given. The transitory allocation was intended for continuation of benefit of subsidized foodgrains to the population Above the Poverty Line (APL) as any sudden withdrawal of benefits existing under PDS from them was not considered desirable. The transitory allocation was issued at prices, which were subsidized but were higher than the prices for the BPL quota of foodgrains.

Keeping in view the consensus on increasing the allocation of foodgrains to BPL families, and to better target the food subsidy, Government of India increased the allocation to BPL families from 10 kg. to 20 kg of foodgrains per family per month at 50% of the economic cost and allocation to APL families at economic cost w.e.f. 1.4.2000. The allocation of APL families was retained at the same level as at the time of introduction of TPDS but the Central Issue Prices (CIP) for APL were fixed at 100% of economic cost from that date so that the entire consumer subsidy could be directed to the benefit of the BPL population.

Subsequently the number of BPL families was increased w.e.f. 1.12.2000 by shifting the base to the population projections of the Registrar General as on 1.3.2000 instead of the earlier population projections of 1995. This increased the total number of BPL families to 652.03 lakh as against 596.23 lakh families originally estimated when TPDS was introduced in June, 1997.

The end retail price is fixed by the States/UTs after taking into account margins for wholesalers/retailers, transportations charges, levies, local taxes etc. Under the TPDS the States were requested to issue food-grains at a difference of not more than 50 paise per kg over and above the CIP for BPL families. Flexibility to States/UTs.has been given in the matter of fixing the retail issue prices by removing the restriction of 50 paise per kg over and above the CIP for distribution of foodgrains under TPDS except with respect to Antyodaya Anna Yojana where the end retail price is to be retained at Rs. 2/ a Kg. for wheat and Rs. 3/ a Kg. for rice.

IDENTIFICATION OF BPL FAMILIES UNDER TPDS

Guidelines were issued for implementation of TPDS provided the State Governments to identify the BPL families by involving the Gram Panchayats and Nagar Palikas. While doing so the thrust should be to include the really poor and vulnerable sections of the society such as landless agricultural labourers, marginal farmers, rural artisans/craftsmen such as potters, tapers, weavers, black-smith, carpenters etc. in the rural areas and slum dwellers and persons earning their livelihood on daily basis in the informal sector like potters, rickshaw-pullers, cart-pullers, fruit and flower sellers on the pavement etc. in urban areas. The Gram Panchayats and Gram -Sabhas should also be involved in the identification of eligible families.

SCALE OF ISSUE OF FOOD-GRAINS UNDER TPDS

Since 1997, the Scale of issue of the BPL families has been gradually increased from 10 Kg to 35Kg per family per month.The scale of issue was increased from 10kg. to 20 kg. per family per family per month with effect from 1.4.2000. The allocation for APL families has been retained as the same level as at the time of introduction of TPDS (I.e 10 Kg. per family per month). The allocation of foodgrains for the BPL families has been further increased from 20 Kg. to 25 Kg. per family per month with effect from July, 2001. Initially, the Antyodaya families were provided 25 Kg. of foodgrains per family per month at the tome of launching of the scheme. The scale of issue under APL, BPL and AAY has been revised to 35 Kg. per family per month with effect from 1.4.2002 with a view to enhancing the food security at the household level.