ANNA CHAKRA & SCAN PORTAL
Introduction
On 5th December 2024, Shri Pralhad Joshi, Union Minister for Consumer Affairs, Food and Public Distribution, and Renewable Energy, launched two key initiatives aimed at modernizing India’s Public Distribution System (PDS) and the subsidy claim mechanisms for food security:
- ‘Anna Chakra’ – A PDS Supply Chain Optimization
- SCAN Portal – A Subsidy Claim Application for the National Food Security Act (NFSA).
These initiatives are designed to improve the efficiency, transparency, and cost-effectiveness of India’s PDS, which serves over 81 Crore beneficiaries.
ANNA CHAKRA: PDS SUPPLY CHAIN OPTIMISATION TOOL
- ‘Anna Chakra’ is an advanced tool developed by the Department of Food and Public Distribution (DFPD), in collaboration with:
- World Food Programme (WFP)
- Foundation for Innovation and Technology Transfer (FITT), IIT-Delhi
- The tool utilizes advanced algorithms to identify the most efficient routes for food grain transportation across the country, ensuring the seamless movement of food from warehouses to Fair Price Shops (FPS).
- The PDS supply chain involves various stakeholders, including farmers, warehouses, and retailers, making this tool crucial for improving logistics and reducing inefficiencies.
OBJECTIVES & IMPACT OF ANNA CHAKRA
- Efficiency Enhancement: Anna Chakra will speed up the movement of food grains, improving timeliness and reliability.
- Cost Savings: By optimizing delivery routes, the tool is expected to save 250 Crore annually by reducing fuel consumption, transportation costs, and time.
- Environmental Benefits: The tool’s route optimization will lower the carbon footprint of transportation, reducing fuel consumption and transportation-related emissions.
- Wide Coverage: The optimization process covers 30 states, 37 lakh Fair Price Shops, and approximately 6700 warehouses.
KEY INTEGRATIONS
- Freight Operations Information System (FOIS): Optimizes railway transportation.
- PM Gati Shakti Platform: Maps geo-locations of FPSs and warehouses for better coordination.
These integrations will help streamline the PDS logistics network, ensuring timely and efficient delivery of food to beneficiaries.
SCAN PORTAL: SUBSIDY CLAIM APPLICATION FOR NFSA
The SCAN portal is a key initiative designed to simplify and expedite the process of claiming food subsidies under the National Food Security Act (NFSA). The portal allows states to:
- Submit Subsidy Claims: States can now submit their food subsidy claims through a single window
- Claim Scrutiny and Approval: Ensures quick scrutiny and processing of subsidy claims by the Department of Food and Public Distribution (DFPD).
- End-to-End Automation: The portal automates the entire process using rule-based processing, which speeds up the release and settlement of subsidies.
BENEFITS & SIGNIFICANCE OF SCAN PORTAL
- Transparency: States can track the status of subsidy claims on a centralized platform.
- Faster Processing: Automation eliminates delays, ensuring faster approval and settlement of subsidies.
Significance of These Initiatives
- Optimizing the World’s Largest Food Security Program: India’s Public Distribution System (PDS) is one of the largest in the world, and initiatives like ‘Anna Chakra’ will make it more efficient and responsive to beneficiaries’ needs.
- Economic Impact: By optimizing transportation and automating subsidy claims, these tools will lead to significant cost savings and more efficient service delivery.
- Environmental Impact: Reducing fuel consumption and emissions aligns with the government’s goals for sustainability and eco-friendly practices within the public distribution system.
These initiatives aim to make India’s food distribution system more resilient, cost-effective, and future-ready in the face of evolving challenges.
EVOLUTION OF PDS SYSTEM
The Public Distribution System (PDS) is a government-run program designed to provide essential food items like rice, wheat, sugar, and kerosene oil at subsidized rates to economically vulnerable populations. The system is one of the key mechanisms used to ensure food security in India.
- Ministry: The PDS is managed by the Ministry of Consumer Affairs, Food, and Public Distribution.
Evolution of PDS
- Pre-1992: PDS was a general entitlement system.
- 1992: Revamped PDS (RPDS) focused on serving poor families, especially in remote areas.
- 1997: Targeted PDS (TPDS) established Fair Price Shops (FPS) to distribute subsidized food grains.
OBJECTIVES OF PDS
- Affordable Food: Provide essential food items at subsidized prices to vulnerable populations.
- Price Stabilization: Stabilize the prices of essential commodities in the market.
- Combat Hoarding: Prevent hoarding and black marketing of food grains.
- Address Hunger and Malnutrition: Combat hunger and malnutrition, especially in economically disadvantaged communities.
Significance of Targeted PDS (TPDS)
- Supreme Court Ruling: In the case People’s Union for Civil Liberties v. Union of India, the Supreme Court recognized the right to food as an essential part of the right to life under Article 21 of the Constitution.
- National Food Security Act (NFSA) 2013: Made the right to food a legal entitlement, providing subsidized food grains to nearly two-thirds of the population. The TPDS mechanism is the primary tool for distribution.
IMPORTANCE OF PDS
- Subsidized Prices: PDS provides food grains at prices lower than those in private markets.
- Farmer Support: The government purchases food grains from farmers at the Minimum Support Price (MSP), ensuring better income for farmers.
- Essential Commodities: Supplies staples like rice, wheat, sugar, and kerosene oil.
- Targeting the Poor: PDS primarily targets Below Poverty Line (BPL) families, though the identification process has evolved over time.
FUNCTIONS OF PDS
The PDS process involves four key steps:
- Procurement of Food Grains:
- The Central Government procures food grains from farmers at MSP set by the Commission for Agricultural Costs and Prices (CACP).
- Procurement Methods:
- Centralized: Managed by Food Corporation of India (FCI).
- Decentralized: Some states/UTs procure grains on behalf of FCI.
- Storage of Food Grains:
- Food grains are stored in godowns and silos.
- Issues:
- Inadequate storage capacity.
- Improper storage methods leading to damage or rotting.
- Allocation of Food Grains:
- Food grains are allocated from the central pool to state governments at a uniform Central Issue Price (CIP).
- Transportation of Food Grains:
- The FCI manages interstate transportation of food grains from surplus to deficit states.
- State governments distribute food from depots to Fair Price Shops (FPS) for distribution to consumers.
CHALLENGES IN PDS
- Identification of Beneficiaries: Issues such as bogus cards and incorrect identification can lead to inefficiencies in distribution.
- Storage Problems: Limited storage facilities and poor storage practices can result in food grain wastage.
- Logistical Constraints: Delays and inefficiencies in transportation affect timely distribution.
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