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Ration cards are an official document issued by state governments in India to households that are eligible to purchase subsidised food grain from the Public Distribution System under the National Food Security Act (NFSA). They also serve as a common form of identification for many Indians. [1]
Under the NFSA, all state governments in India have to identify households that are eligible for purchasing subsidised food grain from the Public Distribution System and provide them with ration cards. There are two types of ration cards under NFSA: [2]
"One Nation, One Ration Card" is Aadhaar-based national ration card portability scheme to ensure food security for all, including internal migrants within India, under which beneficiaries can purchase subsidised food anywhere in India. For example, a migrant worker can obtain his share of food in his migrant destination location while his family can obtain their share in their source/native home location.
Before the NFSA was enacted, there were three types of ration cards: [3]
"One Nation, One Ration Card", introduced in 2018, is the Aadhaar-based national ration card portability scheme to ensure food security for all including internal migrants within India. It used beneficiary's Aadhaar card for the online verification of the beneficiary. It enables migrant workers and their family members to access PDS benefits from any Fair Price Shop anywhere in the country, thus ensuring the food security through the inter-state portability of ration cards. By March 2021, 20 states have already joined the scheme and the rest were in the process of migrating to this scheme. [4]
Earlier "Annavitran Portal" maintained data of distribution of foodgrains through E-PoS devices within a state, which allows a migrant worker or his family to obtain food from PDS Public Distribution System) outside their district but within their state. Now, "Integrated Management of Public Distribution System" (IM-PDS) portal has been introduced, which will work in combination with Annavitran Portal to enable the inter-state portability of ration cards under which migrant worker can buy his/her share of food in their migrant destination location, and the rest of his/her family members can buy subsidised foodgrains from their FPS (Food Provision Store) back home. This prevents leakages, fraud, and enhances the implementation of FPS (National Food Security Act, 2013). PoS (Point of Sales) machines have been installed across all FPSs and in the country and Annavitran Portal has been seeded with Aadhaar. [4]
Section 10 (1a and 1b) of the National Food Security Act requires states governments to identify households to be covered under priority and AAY categories within a year from the commencement of NFSA and place the list of identified eligible households in the public domain. [2] After the enactment of NFSA, all state governments developed a set of eligibility criteria to identify households for issuing ration cards. Based on this eligibility criteria, new ration cards were issued. In some states (such as Bihar and Madhya Pradesh), the state governments used existing data (such as the Socio-Economic Caste Census) to identify households and issue new ration cards. In other states (such as Chhattisgarh and Odisha), eligible households had to apply for new ration cards through a self-declaration process. [5]
Earlier, prior to the digitisation, many problems with the PDS ration system exist, there are millions of ineligible and fraudulent ration cards; [6] at the same time, millions of poor families have no ration card. [7] [8] PDS shop owners in collusion with government officials diverted the subsidized food supply and petroleum to the black market. Card numbers are inflated by those held under false or duplicate names, in the names of dead or fake people . [9] [10]
Following initiatives have been taken to weed out the fake ration card and to prevent fraud.
The bank accounts and ration cards of eligible beneficiaries are linked to their Aadhaar numbers. A bank account can be enabled as AeBA by seeding (linking) it with an Aadhaar number. Seeding makes mapping information stored on the NPCI payment gateway that facilitates the subsidy payment. Seeding helps identify genuine and eligible beneficiaries and prevents duplicate and non-existent persons from registering. [11] Users can link a bank account as self-service option through ATM kiosks, the Internet, bank websites, telephone, or by providing a copy of the Aadhaar letter to a bank.
Prior to Aadhaar, the issues plaguing and derailing social security programs in India were caused by corrupt officials and middlemen manipulating paper records and stand-alone databases of social security services. Due to lack of a unique identifier like Aadhaar, stand-alone databases cannot detect and eliminate duplicate or fraudulent beneficiaries. The most common modus operandi adopted to inflate the beneficiary list is by inserting duplicate entries, non-existent names, and the names of dead and non-eligible people. Attempts are then made to steal the social security benefits money, depriving genuine claimants. [12] [13] [14]
Aadhaar-enabled service delivery (AeSD) prevents corruption in retail by directly crediting benefit money into the beneficiary's bank account; this is called Direct Benefit Transfer (DBT). It eliminates middlemen and fraudulent, ineligible beneficiaries. In this way, Aadhaar saves billions of rupees of public money annually and enables poor people access to social security benefits.
Various financial and other services are being Aadhaar-enabled, called Aadhaar-enabled Service Delivery (AeSD), in a phased manner. [15] By 1 January 2014, half of India (289 districts across various states) had been covered by DBT for subsidized LPG. By August 2013, 6.3 million duplicate LPG connections were detected by Aadhaar and were cancelled. The national government saved $1 billion on reduced imports by mid-2013. [16]
Applicant eligibility is checked by comparing the service delivery database with other databases. For example, PDS kerosene eligibility is checked by comparing the PDS database with the LPG database. The subsidy on kerosene allocation is reduced if the LPG subsidy is detected for that household. [17]
Ration card eligibility is cross-checked with other related, Aadhaar-linked databases. This approach is designed to improve the audit trail, add efficiency and prevent corruption. It results in direct benefit access for eligible people and annually saves billions of rupees from corruption. [13] [18] Tangible benefits became visible from 2014; a report by UBS published in January 2014 showed Aadhaar DBT can save 1.2% of GDP.
The finance minister informed the Parliament during Vote on Account that as of 31 January 2014, under DBT ₹33 billion for 21 million LPG subsidy and ₹6.28 billion (628 crores) have been transferred for various social programs in 5.4 million transactions. [19] [20]
With the help of e-Ration service, applicants can obtain ration cards and check their costs and food grain availability online. This will help end the corrupt practice of holding back rations and ensure cards reach the needy. Aadhaar card holders can apply for e-ration cards. The Department of Food Supplies and Consumer Affairs website provides eligibility details for the food security plan. This service was first introduced in Delhi. [21] Later this has been followed by the state Governments of Tamil Nadu, Kerala
Between 2018 and March 2021 3-year period, at least 1.29 crore (12.9 million) fake ration cards were eliminated based on the biometric enabled AADHAR card seeding of the ration card database which had several times more beneficiaries as each ration card has several family members on it. Seeding ration cards with AADHAR ensured uniqueness of beneficiaries in Public Distribution System (PDS). Nation-wide 92% ration cards, have bee seeded with at least one member of the household's AADHAR number. Number of fake ration cards weeded out were 93,78,789 in Uttar Pradesh, 20,37,947 in Maharashtra, followed by Madhya Pradesh (3,54,535), Haryana (2,91,926), Punjab (2,87,474), Delhi (2,57,886) and Assam (1,70,057). 19,410 actions were taken against FPS licenses which were either suspended, cancelled, sent show-cause notices, or FIRs lodged by States/UTs, this included 13,905 in Uttar Pradesh, 3,139 in Kerala, etc. [22]
Ration cards and corresponding bank accounts of the heads of families (HoF) have been linked with Aadhaar Numbers of family members to prevent retail corruption. [23] [24] When a beneficiary buys rations from a PDS shop, their eligibility is authenticated through an Aadhaar KYC handheld device. The PDS computer system reads out the quantity eligibility and balance of each item in the local language. After purchase, the balance quantities for that month are read out. The buyer pays the open market rate to the PDS shop. A computer prints a receipt showing all items purchased, balance items, money paid and subsidy amount. The subsidy amount is credited to the beneficiary's bank account under the DBT program. [25] [26] Because the PDS computer system is connected to a central server, beneficiaries can buy ration items from any PDS shop. The system is flexible and provides access and options to the public that was not seen before in PDS. [27]
The state government is preparing to replace about 1,29,00,000 ration cards with the new AP rice card. According to Food and Civil Supplies Andhra Pradesh, around 18 lakh beneficiaries have been found suspicious. The beneficiary for the new AP Ration Card has been identified by a volunteer through door-to-door survey. Now the beneficiary has been identified as the beneficiary will get the YSR Rice Card. While submitting application for Ration Card in Andhra pradesh, Form D1 needs to be submitted to the nearest rationing office.
M-Ration Mitra is a smartphone application that allows people to register for Ration cards through mobile phones, which essentially fast tracks the whole process exponentially. This is primarily done to make sure that those below the Poverty Line do not have to wait for the procedures before getting access to food grains. Through the M-Ration Mitra application, consumers can avail food grains at ration shops and can also receive notification regarding the status of the POS machine in ration shops. They can even receive the address of the nearest ration shops and the benefits of the M-Ration card can be availed by anyone in the family. The M-Ration Mitra also serves as a consumer complaint forum, which will allow consumers to complain about the closure of shops, short-weighing, or non-distribution of certain food items.
Rationing is the controlled distribution of scarce resources, goods, services, or an artificial restriction of demand. Rationing controls the size of the ration, which is one's allowed portion of the resources being distributed on a particular day or at a particular time. There are many forms of rationing, although rationing by price is most prevalent.
The Indian government has, since war, subsidised many industries and products, from fuel to gas.
India has a robust social security legislative framework governing social security, encompassing multiple labour laws and regulations. These laws govern various aspects of social security, particularly focusing on the welfare of the workforce. The primary objective of these measures is to foster sound industrial relations, cultivate a high-quality work environment, ensure legislative compliance, and mitigate risks such as accidents and health concerns. Moreover, social security initiatives aim to safeguard against social risks such as retirement, maternity, healthcare and unemployment while tax-funded social assistance aims to reduce inequalities and poverty. The Directive Principles of State Policy, enshrined in Part IV of the Indian Constitution reflects that India is a welfare state. Food security to all Indians are guaranteed under the National Food Security Act, 2013 where the government provides highly subsidised food grains or a food security allowance to economically vulnerable people. The system has since been universalised with the passing of The Code on Social Security, 2020. These cover most of the Indian population with social protection in various situations in their lives.
Below Poverty Line is a benchmark used by the government of India to indicate economic disadvantage and to identify individuals and households in need of government assistance and aid. It is determined using various parameters which vary from state to state and within states. The present criteria are based on a survey conducted in 2002. Going into a survey due for a decade, India's central government is undecided on criteria to identify families below poverty line.
Aadhaar (Hindi: आधार, lit. 'base, foundation') is a twelve-digit unique identity number that can be obtained voluntarily by all residents of India, based on their biometrics and demographic data. The data is collected by the Unique Identification Authority of India (UIDAI), a statutory authority established in January 2016 by the Government of India, under the jurisdiction of the Ministry of Electronics and Information Technology, following the provisions of the Aadhaar (Targeted Delivery of Financial and other Subsidies, benefits and services) Act, 2016.
The Public Distribution System (PDS) is a food security system that was established by the Government of India under the Ministry of Consumer Affairs, Food and Public Distribution to distribute food and non-food items to India's poor at subsidised rates. Major commodities distributed include staple food grains, such as wheat, rice, sugar and essential fuels like kerosene, through a network of fair price shops established in several states across the country. Food Corporation of India, a government-owned corporation, procures and maintains the PDS.
Reetika Khera is an Indian development economist. Khera is Professor (Economics) at the Indian Institute of Technology, Delhi. She was Associate Professor at the Indian Institute of Management, Ahmedabad from 2018-20.
The Tamil Nadu Civil Supplies Corporation is governed by Government of Tamil Nadu was registered under the Companies Act 1956. It is responsible for providing food grains, commodities for the people under Public Distribution System through Ration shops. It also provides kerosene at very low cost. Some of the commodities are Rice, Wheat, Sugar, Cooking Oil, Rava etc.,
Uttar Pradesh food grain scam took place between years 2002 and 2010, in Uttar Pradesh state in India, wherein food grain worth ₹350 billion (US$4.2 billion), meant to be distributed amongst the poor, through Public Distribution System (PDS) and other welfare schemes like Antyodaya Anna Yojana (AAY), Jawahar Rozgar Yojana and Midday Meal Scheme for Below Poverty Line (BPL) card holders, was diverted to the open market. Some of it was traced to the Nepal and Bangladesh borders, as in 2010 security forces seized Rs 11.7 million worth of foodgrains like paddy and pulses being smuggled to Nepal, another Rs 6062,000 worth of grains were confiscated on the Indo-Bangladesh border.
Pradhan Mantri Gramin Aawas Yojana is a social welfare programme under the Ministry of Rural Development, Government of India, to provide housing for the rural poor in India. A similar scheme for urban poor was launched in 2015 as Housing for All by 2022. Indira Awas Yojana was launched in 1985 by Rajiv Gandhi, the Prime Minister of India, as one of the major flagship programs of the Ministry of Rural Development to construct houses for the Below Poverty Line population in the villages.
Biometrics refers to the automated recognition of individuals based on their biological and behavioral characteristics, not to be confused with statistical biometrics; which is used to analyse data in the biological sciences. Biometrics for the purposes of identification may involve DNA matching, facial recognition, fingerprints, retina and iris scanning, voice analysis, handwriting, gait, and even body odor.
Direct Benefit Transfer or DBT is an attempt to change the mechanism of transferring subsidies launched by Government of India on 1 January 2013. This scheme or program aims to establish a Giro system to transfer subsidies directly to the people through their linked bank accounts. It is hoped that crediting subsidies into bank accounts will reduce leakages, duplicity and delay and the new processes will increase transparency and accountability.
The National Food Security Act 2013, also known as Right to Food Act, is an Indian Act of Parliament which aims to provide subsidized food grains to approximately two thirds of the country's 1.4 billion people. It was signed into law on 12 September 2013, retroactive to 5 July 2013.
Pradhan Mantri Awas Yojana (PMAY) is a credit-linked subsidy scheme by the Government of India to facilitate access to affordable housing for the low and moderate-income residents of the country. It envisaged a target of building 2 crore (20 million) affordable houses by 31 March 2022. It has two components: Pradhan Mantri Awas Yojana(Urban) (PMAY-U) for the urban poor and Pradhan Mantri Awaas Yojana (Gramin) (PMAY-G and also PMAY-R) for the rural poor, the former administered by Ministry of Housing and Urban Affairs and the latter by Ministry of Rural Development. This scheme converges with other schemes to ensure that houses have a toilet, Saubhagya Scheme for universal electricity connection, Ujjwala Yojana LPG connection, access to drinking water and Jan Dhan banking facilities, etc.
Unorganised Workers' Identification Number or UWIN is a proposed unique number to be issued as identity proof to unorganised workers in India.
Give Up LPG Subsidy is a campaign that was launched in March 2015 by the Indian government led by Prime Minister Narendra Modi. It is aimed at motivating LPG users who are able to afford to pay the market price for LPG to voluntarily surrender their LPG subsidy. As of 23 April 2016, 10 million people had voluntarily given up the subsidy. The surrendered subsidy is being redistributed by the government in order to provide cooking gas connections to poor families in rural households free of cost. Maharashtra, Uttar Pradesh, Karnataka, Delhi and Tamil Nadu are the top five states to give up the subsidy.
Pradhan Mantri Ujjwala Yojana was launched by Prime Minister of India Narendra Modi on 1 May 2016 to distribute 50 million LPG connections to women of Below Poverty Line (BPL) families. A budgetary allocation of ₹80 billion (US$960 million) was made for the scheme. The scheme was replaced by the Ujjwala Yojana 2.0 in 2021. Although the scheme has expanded access to clean cooking technologies, the use of polluting fuels remains common, particularly in rural India.
JAM trinity refers to the government of India initiative to link Jan Dhan accounts, mobile numbers and Aadhaar cards of Indians to plug the leakages of government subsidies.
Food security has been a major concern in India. In 2022, the Global Food Security Index ranked India at 68th out of the 113 major countries in terms of food security. In 2023, the Global Hunger Index ranked India at 111th out of 125 countries. According to United Nations, there are nearly 195 million undernourished people in India that make up a quarter of the world's undernourished population. In addition, roughly 43% of children in India are chronically undernourished. Though the current nutritional standards meets 100% of daily food requirements, India lags far behind in terms of a quality protein intake at 20%; this shortcoming can be alleviated by making available protein-rich food products such as soybeans, lentils, meat, eggs, dairy, etc. more readily accessible and affordable for Indian citizens. The Human Rights Measurement Initiative finds that India is operating at only 56.8% of its capacity based its economic power to ensure its citizens have adequate food security.
Pradhan Mantri Garib Kalyan Anna Yojana is a food security welfare scheme announced by the Government of India on March 26 2020, during the COVID-19 pandemic in India. The program is operated by the Department of Food and Public Distribution under the Ministry of Consumer Affairs, Food and Public Distribution. But the nodal ministry is Ministry of Finance.The scale of this welfare scheme makes it the largest food security program in the world benefiting 81.35 crore in India.
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