Managing supply and transportation disruptions: a case of Indian fair price shops

Kybernetes ◽  
2019 ◽  
Vol 49 (11) ◽  
pp. 2773-2797 ◽  
Author(s):  
Sayan Chakraborty ◽  
Sarada Prasad Sarmah
Keyword(s):  
Distribution System ◽  
Optimization Technique ◽  
Inventory System ◽  
Fair Price ◽  
Policy Makers ◽  
Content Type ◽  
Public Distribution System ◽  
System A ◽  
Food Grains ◽  
Simulation Based

Purpose India has the largest public distribution system (PDS) in the world, working through over five million fair price shops (FPS) to distribute food grains among its beneficiaries at a subsidized rate. In this paper, the authors study the inventory system of Indian FPS. The system involves a distributor, who is solely responsible for the replenishment of the FPS. In a real-world scenario, the distributor is subjected to random supply and transportation disruptions. The purpose of this paper is to investigate and minimize the impacts of such disruptions. Design/methodology/approach In this paper, the authors adopt a simulation-based technique to explore the impacts of various traits of disruptions like frequency and duration on the FPS inventory system. A simulation model for the Indian FPS is developed and the impacts of disruptions are investigated by a case study. Findings The authors use a simulation-based optimization technique to suggest a simple managerial change that can lead to a minimization of inventory shortage up to 60 per cent and system cost up to 21 per cent over the existing practice. Originality/value The present study addresses the FPS inventory system of Indian PDS, which is by its nature unique and has not been considered by any other previous literature. The findings of this study will be of particular interest to the policy-makers to build a more robust PDS in India.

scholarly journals Effectiveness of the Public Distribution System: A Critical Review

2019 ◽  
pp. 1-8
Author(s):  
Alok Kumar Sahoo ◽  
D. K. Krishna ◽  
N. V. Kumbhare
Keyword(s):  
Distribution System ◽  
Fair Price ◽  
The Public ◽  
Public Distribution System ◽  
System A ◽  
Food Grains ◽  
Support Price ◽  
Absolute Quantity ◽  
Food And Nutritional Security ◽  
Input Prices

Public Distribution System (PDS) started from 1997 for providing essential commodities like rice, wheat, sugar etc. to a large number of people through a network of 5.35 lakh Fair Price Shops (FPS) on a recurring basis at a subsidized price to boost food and nutritional security in India. Whether the PDS is effective to reach targeted people is under serious concern. The problem arises as supply exceeds demand at Minimum Support Price (MSP) of food grains. Over the last 7 years, the average procurement of food grains (rice and wheat) has been around 25 per cent of production. The rising MSP of foodgrains during the last 7 years which enhances the chance of increased subsidy amount given by government resulting increased quantity of food grains procurement and inflation in input prices at constant Central Issue Prices (CIP). Gulati and Saini [1] evaluated under various studies- since 1999-2000 to 2011-12 which narrates about rising leakages of food grains from 9 per cent in 1999-2000 to 36 per cent in 2011-12. In terms of absolute quantity of grains pilfered, of the total quantity of 25.91 MMT pilfered, UP stands at the top with almost 4 MMT (15.3%) pilfered from PDS in 2011-12. There are 39.6 per cent poor having ration cards and 60.4 per cent poor having no cards. There are 26.3 per cent non-poor having ration cards causing inclusion error. The exclusion error is severe as a Type-II error causing 70.5 per cent total in India. There are many loopholes in PDS, leading to ineffectiveness and inefficiency in achieving its objectives. It needs reforms like the transparent selection of beneficiaries, universalization, end to end computerization, more commodities to be included, an effective grievance redressal agency, ADHAAR based PDS, the inclusion of innovative schemes like food coupon, smart card etc. More or less, the innovative mechanism in PDS has to be assessed before implementation to enhance effectiveness and check further error.

Blockchain in Indian Public Distribution System: a conceptual framework to prevent leakage of the supplies and its enablers and disablers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Himani Mishra ◽  
Prateek Maheshwari
Keyword(s):  
Conceptual Framework ◽  
Distribution System ◽  
Central Government ◽  
Research Work ◽  
Cost Effective ◽  
Fair Price ◽  
Content Type ◽  
Public Distribution System ◽  
Blockchain Technology ◽  
Food Grains

Purpose The purpose of this paper is to propose a conceptual framework for the application of blockchain in the Public Distribution System (PDS) in India to manage the supply of food grains to the targeted beneficiaries. The framework will help prevent diversions and leakages of grains at the warehouse and Fair Price Shop (FPS) level. The paper also identifies the enablers and disablers in the context of the framework. Design/methodology/approach This paper will firstly review the previous literature in PDS and blockchain-enabled agricultural and food supply chains. The study then proposes a framework that could be implemented in the PDS in India using blockchain technology. Findings The proposed framework provides an effective way to combat corruption, exclusion errors of targeted beneficiaries, leakage of PDS food grains and is cost-effective. The identified enablers and disablers give an insight into the application of blockchain in PDS in India. Research limitations/implications The research work may have implications for the Ministry of Food and PDS (Central Government), Food Corporation of India and State Governments to manage the supply of the grains more efficiently and effectively. Originality/value The current study caters to the implementation of blockchain technology starting from the warehouse level to the FPSs and consumers and simultaneously connecting them to concerned authorities to ensure transparency and accountability.

Selecting enablers for sustainable PDS supply chain in the Indian context using fuzzy-DEMATEL approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sumanta Das ◽  
Akhilesh Barve ◽  
Naresh Chandra Sahu ◽  
Devendra K. Yadav
Keyword(s):  
Supply Chain ◽  
Distribution System ◽  
Causal Model ◽  
Literature Survey ◽  
Fuzzy Dematel ◽  
Content Type ◽  
Public Distribution System ◽  
Food Grains ◽  
Indian Context ◽  
Entire Society

PurposeThis paper aims to identify, analyze and evaluate the major enablers for the sustainable public distribution system (PDS) supply chain in India in lessening food insecurity by distributing essentials food grains at a subsidized rate.Design/methodology/approachThe major enablers for the sustainable PDS supply chain were explored by conducting the literature survey and discussion with academic and warehouse experts. Then, the fuzzy-DEMATEL (decision-making trial and evaluation laboratory) technique was applied to develop a causal model that analyses the interaction among the identified enablers.FindingsThis study recognizes fifteen enablers through literature survey and experts' opinions. The present work concludes that “proper identification of the PDS beneficiaries” and “willingness and commitment of the top management and policymaker” are the two major enablers for the sustainable PDS supply chain.Research limitations/implicationsThis work would be helpful for profoundly understanding the major enablers, and how they are affecting the entire PDS supply chain. The study would be beneficial for the general people and the entire society straightforwardly by providing suggestions for food security.Originality/valueIdentifying and analyzing the major enablers for the sustainable PDS supply chain helps to visualize the problem more effectively and efficiently. Besides, the causal model explains a comprehensive perspective on the identified enablers.

An investigation of IT-intervention adoption in public distribution system: A stakeholder and agency theory perspective

2017 ◽  
Vol 35 (2) ◽  
pp. 203-219 ◽  
Author(s):  
Namrata Sharma ◽  
Sumeet Gupta
Keyword(s):  
Agency Theory ◽  
Distribution System ◽  
Processing System ◽  
Transaction Processing ◽  
Goal Conflict ◽  
Fair Price ◽  
Case Study Methodology ◽  
Public Distribution System ◽  
System A ◽  
Reporting Mechanism

This paper attempts to explore the adoption of changes introduced by an IT-intervention in the context of a social welfare scheme. Using case study methodology, we have studied the changes introduced through the project ‘CORE PDS’ (Centralized Online Real-time Electronic Public Distribution System) in the Chhattisgarh Public Distribution System (PDS). CORE PDS was a far-sighted project aimed to integrate the retailers (Fair Price Shops, FPSs) with IT infrastructure. It simultaneously introduced two changes. One was an automated transaction processing system while another was the provision of portability for the beneficiaries. After 2 years of its implementation it was observed that despite the government’s diligent efforts, only the automated transaction processing system was adopted, while portability was discarded by the FPSs. We use the theoretical lenses of stakeholder theory and agency theory for identifying reasons for this partial failure. Our analysis suggests that information system (as monitoring and reporting mechanism), outcome uncertainty, risk aversion and goal conflict play critical roles in the adoption of changes. Changes with higher monitoring, lower outcome uncertainty and lower goal conflict are easily adopted, and on the other hand, lower monitoring, greater outcome uncertainty and higher goal conflict result in lower possibility of adoption.

Economic impact of initial period of lockdown in Kolkata and suburbs

2021 ◽  
pp. 1-9
Author(s):  
Bandana Sen ◽  
Aloke Kar
Keyword(s):  
Distribution System ◽  
Small Businesses ◽  
Initial Period ◽  
Decisive Role ◽  
Income Group ◽  
Free Food ◽  
The Public ◽  
Public Distribution System ◽  
Food Grains ◽  
On Line

The present study provides a snapshot of the level of degradation of economic and living conditions of middle-class households of Kolkata and its neighbourhood during ‘lockdown’. It is based on an on-line survey of households of students of five purposively-selected colleges carried out during the second half of May 2020. The survey reveals that inflow of regular normal income had ceased altogether for over 40% of the sample households. About 15% of the households suffered from outright job loss or complete denial or withholding of wages and salaries payments of their members in paid employment and another about 27% reported complete closure of small businesses run by them. The normal-times income had altogether ceased for over a half of the households of the lowest income group. Predictably, the worst hit group was the wage labourers. Over four-fifths households with their prime earning member in wage employment reported job and earnings related problems, with over a fourth reporting job losses. Households with self-employed prime earners too were severely affected, with about three-fourths of them reporting such problems. Even the households with regular-salaried prime earners were badly hit. About a half of them reported job and earnings related problems. The results suggest that food grains distribution through the Public Distribution System (PDS) played a decisive role in averting an imminent famine-like situation. About 60% of the sample households were found to have procured food stuff from the PDS. Among the wage-labourers’ households, well over 80% reported dependence on the PDS, with ostensibly a large proportion of them receiving food altogether free. Despite free food grains distribution, about 5% of the sample households could not arrange three meals a day for all its members.

Rethinking the Formation of Public Distribution System: A Class-Focused Approach

2021 ◽  
pp. 048661342110349
Author(s):  
Soumik Sarkar ◽  
Anjan Chakrabarti
Keyword(s):  
Food Security ◽  
Distribution System ◽  
Social Needs ◽  
Surplus Labor ◽  
The Public ◽  
Public Distribution System ◽  
System A ◽  
Historical Condition ◽  
Indian State ◽  
The 1960S

Using the methodology of overdetermination, class process of surplus labor as the entry point and socially determined need of food security, we deliver an alternative class-focused rendition of the public distribution system (PDS) in India. We first surmise our theoretical framework to infer that the overdetermined and contradictory relation of class and social needs matter for PDS. Beyond the reasoning of being pro-poor, fair, or wasteful, we deploy this framework to reinterpret the formation of Indian PDS in the 1960s. Its demonstration requires revisiting the historical condition that shaped capital’s passive revolution through the post-independence Indian state and its subsequent crisis arising out of the contradictions and conflicts in the class-need space. We argue that PDS signals a case of success and not failure of capitalism.

Incentive mechanism for a sustainable public distribution system

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sri Vanamalla Venkataraman ◽  
Faiz Hamid
Keyword(s):  
Moral Hazard ◽  
Information Asymmetry ◽  
Distribution System ◽  
Design Methodology ◽  
Incentive Mechanism ◽  
Bureaucratic Corruption ◽  
Content Type ◽  
Public Distribution System ◽  
The Incentive Mechanism ◽  
Level Of Effort

Purpose Government distributing rationed goods through a public distribution system often do not reach the deserving citizens primarily due to the practice of corruption. This paper aims to design an incentive mechanism to curtail such corrupt practices. Design/methodology/approach The incentive mechanism is developed in a principal-agent framework where the information asymmetry is in the form of moral hazard. Findings The mechanism designed through this study sufficiently penalizes the agent who receives bribe and incentivizes if desired level of effort is applied. Originality/value The paper contributes to the existing literature by developing an incentive mechanism to prevent bureaucratic corruption. Appropriate wages are also quantified in this study.

Rescaling the public distribution system in India: Mapping the uneven transition from spatialization to territorialization

2016 ◽  
Vol 35 (1) ◽  
pp. 113-129 ◽  
Author(s):  
Frédéric Landy
Keyword(s):  
Distribution System ◽  
Policy Innovation ◽  
Policy Framework ◽  
Central State ◽  
The Public ◽  
Public Distribution System ◽  
Food Grains ◽  
Poor Households ◽  
A Minor

The Indian public distribution system operates like a huge machine transferring food grains procured by the federal government from surplus regions at a guaranteed price towards deficit areas where grains are sold at subsidized prices to poor households. The role of India’s regional States has become more significant in recent years with ‘decentralized procurement’. However, the national state has not become a minor actor, sandwiched between the globalization of food flows and decentralization policies. A process of state spatial rescaling is indeed taking place, although limited in scope and uneven across space. Before the 1990s, despite the uncontested power of the central state, sizeable differentiation already existed between States or ‘food zones’, in procurement as well as distribution. Recent rescaling of the policy has given States greater scope for policy innovation, via a ‘territorialization’ process. Nevertheless, despite significant rescaling to the subnational scale and the importance of ‘localization’ and ‘globalization’ trends, the national scale maintains a prominent position in the overall policy framework.

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