PATNA: Public distribution system (PDS) in Bihar has enormously improved during the last five years or so, says a recent survey conducted by economists Jean Dreze and Reetika Khera.

"Today the PDS coverage is more inclusive, distribution is more regular and the quality of rice and wheat has improved to a great extent in Bihar where 90% of PDS rice and wheat used to be diverted to the black market till 2004-05. Altogether 81% respondents felt the quality of rice distributed through PDS was 'good' or 'average' (as opposed to 'bad') while 91% respondents gave 'good' or 'average' remarks for wheat," Dreze told a presser here on Friday.

The "Bihar National Food Security Act (NFSA) Survey", jointly sponsored by Allahabad University and IIT-Delhi, was conducted to know the ground realities about the PDS a year after the Bihar government implemented the NFSA on February 1, 2014. The survey conducted in rural areas of four districts - Banka, Gaya, Purnia and Sitamarhi - covered 1,000 households, selected randomly from the socio-economic and caste census (SECC) list of 48 randomly-selected villages.

"Under the NFSA, a new list of PDS beneficiaries has been generated on the basis of SECC data. This list is more inclusive, logical, reliable and transparent than the earlier 'BPL list'. Of the 1,000 sample households, 89% are eligible for PDS entitlements under NFSA, based on their SECC data. Of those who are eligible, 84% have a valid ration card, either a new 'priority card' or an 'Antyodaya card'. Thus, Bihar has today a more reliable list of eligible households," said Khera while releasing the survey findings.

"The NFSA list is more comprehensive and reliable than the BPL list," the survey said and added there are few exclusion errors: only 3% of sample households were found to have been wrongly classified as ineligible by the SECC data. Also, at least 16% of those eligible were found during the survey to be waiting for their ration card.

The survey revealed leakages in the PDS have been significantly reduced. Households with a new ration card ('priority households' under the NFSA) received 76% of their PDS entitlements in November 2014, the month preceding the survey, with only 3.8kg of wheat or rice each being distributed as against the entitlement of 5kg. Though less than entitlement, it shows progress compared to 10-15 years ago when more than 90% PDS grains used to end up in black market, Dreze and Khera said and added Bihar, once the worst in PDS in India, is today one of the pioneers of the NFSA.

Compared to Jharkhand, Bihar has made excellent improvement. "As per a National Sample Survey Organisation survey in 2009-10, there were around 75% leakages in PDS in Bihar while just 40% in neighbouring Jharkhand. Bihar has now reduced its leakages to around 24% to 20% whereas Jharkhand is still there at 40%," Khera said.

Though the leakages have come down in Bihar, Khera said, they are still unacceptably high. Also, PDS dealers arbitrarily up the prices. "Strict measures are urgently required to ensure that dealers are more accountable. The proposed reintroduction of coupon system is a useful step in this regard. But earlier experience shows the coupon system has a limited impact when PDS dealers wield overwhelming power over cardholders. Ideally, they should be replaced with collective institutions such as cooperatives, self-help groups or gram panchayats as in Chhattisgarh and Odisha," the two economists said in a statement.

