PRICES AND FOOD SECURITY

Transcription

1 CHAPTER 15 PRICES AND FOOD SECURITY PRICES Consumer Price Index (CPI) Consumer Price index is designed to measure the changes over time in the general level of retail prices of goods and services consumed by a reference population. It is an indicator of inflationary trend. Consumer Price Index is an appropriate measuring rod to determine the impact of price rise on the cost of living of the common man. At present four CPIs covering different segments of population ie; Industrial Workers (IW), Urban Non-Manual Employees (UNME), Agricultural and Rural Labourers (AL/RL) are released at national level During 2010 (upto August) the Consumer Price Index of agricultural and industrial workers in Kerala went up by 14 points (base = 100), compared to the corresponding period of 2009 ie; the index rose from 161 points in August 2009 to 175 points in August 2010 (Table 15.1). The increase in 2009 was 11 points compared to 2008 which shows that inflation in terms of Consumer Price Index was higher in the State during 2010 compared to the previous year. Table Annual Average Consumer Price Index of Agricultural and Industrial workers of selected centres in Kerala to (Base : = 100) SL No Year % variation over previous year Centres * * * 2010* 1 Thiruvananthapuram Kollam Punalur Pathanamthitta Alappuzha Kottayam Mundakkayam Munnar Ernakulam Chalakkudy Thrissur Palakkad Malappuram Kozhikode Meppady Kannur Kasaragod State Average

2 99 Source: Directorate of Economics and Statistics *Upto August Fig Consum e r Price Index of Agricultural and Indus trial Work ers in Kerala (Base =100) CPI Year 15.3 While analyzing the indices of seventeen Centres during 2010 (upto August), Pathanamthitta recorded the highest index of 183 followed by Thiruvananthapuram (180) and both Punalur and Palakkad (179). The lowest index of 168 was registered at both Munnar and Thrissur preceded by Meppadi (169) and Kannur (171). The indices of 9 Centres fall below the state average of 175 and that Alappuzha and Chalakkudi Centres stood with the same index of state average. The variation of indices of 2010 over the previous year for various Centres ranged from 6 percent to 11 percent. The percentage variation during 2010 (upto August) over previous year was highest in Kasaragod (11%) and lowest in Kollam (6%) The month wise movements of Consumer Price Index are given in Appendix The movement of indices during 2010 is within the range of 164 to 191. The lowest Consumer Price Index of 164 was recorded at Thrissur during February and March and reached at 172 in August Pathanamthitta recorded the highest index of 191 during August The lowest index during August 2010 was recorded at Thrissur (172) and highest at Pathanamthitta (191). Retail Prices 15.5 The average Retail Prices of essential commodities during December from 2007 to 2010 (during October) and its percentage variation over the previous years are given in Table While analyzing the prices of 18 essential commodities in 2010 (during October), it was observed that among cereals, rice recorded the highest increase of 31.5 percent over the corresponding period of previous year. Dhall and greengram, registered a decrease of 18.7 percent and 0.5 percent respectively. The retail prices of Blackgram and Redgram hiked by 18.3% and 3.9% respectively. Under other food items the price of milk hiked by 15 percent and egg by 12.8 percent. Oil and oil seeds experienced a heavy rise during October 2010 over the corresponding period of the previous year ie. Coconut oil by 59.6 percent, coconut by 42.3 percent, refined oil by 14.6 percent and ground nut oil by 6.1 percent. Among spices and condiments the price of corriander decreased by 23.2% and Chillies by 10.1%. The price of Onion (small) increased by 5.7 percent. Under Tubers, potato

3 100 recorded a decrease in price of 31.6 percent during October 2010 compared to the corresponding period of SL. No A Cereals Table Average Retail Prices of Essential Commodities in Kerala 2007 to Prices during December % variation over Commodities Unit (`) previous year * * * 2010* 1 Rice (Red) OM Matta Kg Greengram Kg Blackgram Kg Redgram Kg Dhall (Tur) Kg B Other Food Items 6 Milk (Cow s)) Lr Egg (Hen's Nadan) Dozen Sugar (OM) Kg C Oil and Oil seeds 9 Coconut Oil Lr (kg) Groundnut Oil Lr (kg) Refined Oil Lr (kg) Coconut (without Husk) D Spices & Condiments 10 Nos Coriander Kg Chillies (dry) Kg Onion (small) Kg E Tubers 16 Tapioca Kg Potato Kg F Fruits & Vegetables

4 Banana Kg Source: Directorate of Economics & Statistics *During October 15.6 The month-wise average retail prices of essential commodities is given in Appendix Compared to the beginning of 2010, by October the prices of almost all commodities except pulses, sugar, corriander and chilli showed an upward trend. Consumption Expenditure 15.7 The Report of 64 rd round of Sample Survey on Household Consumer Expenditure in India, ' carried out by National Sample Survey Organization (NSSO) relates to the period from July 2007 to June Monthly Per Capita Consumer Expenditure (MPCE) for a household is the total consumer expenditure over all items divided by its size and expressed on a per month (30 days) basis. A person s MPCE is that of the household to which he or she belongs. Box 15.1 Level of Consumption in All India In , around one-half of the Indian rural population belonged to households with monthly per capita consumption expenditure (MPCE) less than `649 at prices. In , the corresponding level of MPCE for the rural population had been estimated as `.580. In urban India, One-half of the population belonged to households with monthly per capita 15.8 consumption According expenditure to the latest less NSS than Report `1130. No. In , 530 (64th the round) corresponding of Household level of MPCE Consumer for the expenditure urban in population India , had been the estimated All India as average `990. MPCE for rural sector is `772. A state-wise comparison shows that Kerala had the highest MPCE of `1383 followed by Punjab (`1034). In Bihar, Chattisgarh, Jharkhand, Madhya Pradesh, Orissa, Uttar Pradesh and West Bengal, the average MPCE is below the national average, the lowest being in Orissa (`559). The All India average MPCE for urban sector as per the report is `1472. State-wise analysis reveals that Kerala had the highest MPCE of `1948 followed by Maharashtra (`1709), Karnataka (`.1668) and Punjab (Rs.1633). The average MPCE of urban sector is the lowest in Bihar (`1080) preceded by Uttar Pradesh (`1121), Madhya Pradesh (`1190) and Rajasthan (`1265). The major State-wise details of average rural and urban MPCE, average household size and ranking by MPCE are given in Appendix Source: NSSO 64 rd Round 15.9 An analysis of the average consumer expenditure per person for a period of 30 days in various NSS Rounds (Table 15.3) shows that the percentage variation of consumer expenditure in Kerala over All India in the urban sector stood at 8.4 percent in while it was 29.5 percent in the rural sector. In it was 31.6 percent in urban areas and 70 percent in rural areas. This percentage variation reached a peak level of 33.7 in urban areas during (62 nd Round) and 81.3 percent in rural during (61 st Round). During (64 th Round) the percentage variation was 32.3 in urban areas and 79.1 in rural areas. Table Trends in Average Consumer Expenditure per person for a period of 30 days in various NSS Rounds (`) Rural Urban Year & Round of NSS Kerala India % variation of Kerala over India Kerala India % variation of Kerala over India

5 (38 th ) (43 rd ) (46 th ) (50 th ) (55 th ) (56 th ) (58 th ) January to December (59 th ) January - June th round Schedule Type - I Schedule Type- II (61st) (62nd) (63 rd ) (64 th ) Source: N.S.S.O Box No Level of Consumption in Kerala In Kerala, only 20 per cent of the rural population belonged to households with monthly percapita consumption expenditure (MPCE) less than ` 588 during and 60 percent belonged to households with MPCE less than Rs In urban Kerala, 20 per cent of the population belonged to households with MPCE less than Rs. An 1659 analysis and of 60 the percent percentage belonged distribution to households of expenditure with MPCE on less food than and Rs non-food items in various Source: NSS NSSO Rounds 64 reveals that the share of food items to the total expenditure shows a declining rd Round trend in the past several Rounds. The share of expenditure on food items exceeded non-food items in the rural areas of Kerala till 55 th Round and urban areas till 43 rd round. There after the percentage expenditure on non-food items shown a higher share. At the All India level, share of expenditure on food items exceeded non-food items in all Rounds in the rural areas and in urban India, from the 55 th round onwards the expenditure of non-food items exceeded food items. Table 15.4 presents the percentage distribution of expenditure on food and non-food items in various NSS Rounds. Table Trends in percentage distribution of Food and Non-food Expenditure classification in various NSS Rounds Year & Round of NSS Rural Urban Kerala India Kerala India Food Nonfood Food Nonfood Food Nonfood Food Nonfood (25 th ) (38 th ) (43 rd ) (46 th ) (50 th ) (55 th ) (56 th ) (58 th )

6 (January to December) (59 th ) January Sch June th round (Type I) Sch. (TypeII) (61st) (62nd) (63 rd ) (64 th ) Source: NSSO Box 15.3 Pattern of Consumption in All India Out of every rupee of the value of the average rural Indian s household consumption during , the value of food consumed accounted for about 52 paise. Of this, cereals and cereal substitutes made up 16 paise, while milk and milk products accounted for 8 paise. Out of every rupee of the value of the average urban Indian s house hold consumption during , the value of food consumed accounted for about 40 paise. Of this, Cereals and Cereal substitutes made up 9 paise, while milk and milk products accounted for 7 paise. Source: NSSO 64 rd Round Box 15.4 Pattern of Consumption in Kerala Out of every rupee spent in by the average rural Keralite on consumption, 41 paise was spent on food. Of this 9 paise was spent on cereals and cereal substitutes, 7 paise on egg, fish and meat and 4 paise on milk and milk products. Out of every rupee spent by the average urban Keralite in on consumption, 36 paise was spent on food items. Of this, 7 paise was spent on cereals and cereal substitutes, 7 paise on egg, fish and meat and 4 paise on milk and milk products. Source: NSSO 64 rd Round Table 15.5 Average Expenditure on Food and Non Food Items per person for 30 days Expenditure (`) Item Kerala All India Rural Urban Rural Urban Food Non-Food Total Source: NSS Report N As per the latest NSS Round (64 rd Round) during the average expenditure on food items per person for 30 days in the rural areas of Kerala was ` as against the All India figure

7 104 of ` In rural areas, the expenditure on non food items per person for 30 days was ` in Kerala and ` at the All India level. This shows that the rural Kerala spends more on non food items than on food items. In the urban sector, the average expenditure on food items per person for 30 days during in Kerala was ` and on non food items the expenditure was ` against the All India figure of ` and respectively. In the urban areas, both Kerala and India spends more on non food items than on food items (Table 15.5). Wholesale Price Index Wholesale Price Index (WPI) is the most popular measure of inflation in the country. The Wholesale Price Index of agricultural commodities in Kerala in 2010 (upto March) went up by 280 points compared to the corresponding period of 2009 registering an increase of 7.4 percent (Table 15.6). Among food crops, the highest price hike was recorded for molasses (38.9%) followed by condiments and spices (21%) and rice (10.5%). The price of food crops increased by 10.8 percent. The price of plantation crops increased by 28.1 percent while oil and oil seeds decreased by 8.5 percent. SL. No. Table Wholesale Price Index of Agricultural Commodities in Kerala Base: =100 % Variation over Year Crops Weight previous year * 2010* * A Food Crops a) Rice b) Condiments and spices c) Fruits and Vegetables d) Molasses B Non-Food Crops a) Oil and Oil Seeds b) Plantation crops C All Crops Source: Directorate of Economics and Statistics *: Upto March The month-wise wholesale price index of agricultural commodities in Kerala is given in Appendix While analyzing the prices of commodities it can be seen that the price of condiments and spices and also fruits and vegetables showed continuous increase during The price of molasses and oil seeds decreased during the period under review. Regarding other items fluctuations are seen during Parity Index Parity index is a relative measure as to the gains or loss to farmers as a consequence of the price fluctuations in the economy. It is constructed to assess how the states consumer price situation affects the farming community. It depends on the prices paid and received by farme` The index is a function of cost of farm cultivation, domestic expenditure and market rate of farm products.

8 105 Year Prices received by farmers Table Index of Parity-Prices Received and Prices paid by Farmers from Growth Rate Farm Cultivation Cost Growth Rate Domestic Expenditure Growth Rate Prices Paid by Farmers Base: =100 Parity index Col.2 to 8 Growth rate * Source: Directorate of Economics & Statistics * Upto June The prices paid by farmers increased considerably year after year. Whereas the prices received by them for their products are found to be less than what they pay (Table 15.7). In 2010 (upto June) the index of prices paid by farmers over the previous year increased by 412 points and the prices received by farmers increased by 268 points signifies that the price situation is unfavourable to the farming community. The farm cultivation cost increased by 780 points during 2010 compared to the previous year and the domestic expenditure increased by 215 points. The ratio of prices received and prices paid by farmers were well below 100 over the last several years reflecting the continuance of adverse terms of trade to the farming community. Wages The average daily wage rates of skilled and unskilled workers in agricultural sector from to are given in Tables 15.8 & The daily wage rates of carpenter in the Agricultural sector increased by ` 44 (14.77 percent) in over while that of Mason increased by ` (14.58 percent). Table Average Daily-wage Rates of Skilled Workers in the Agricultural Sector (`) Year Average Daily Wage Rates % Change Over Previous Year Carpenter Mason Carpenter Mason Source: Directorate of Economics & Statistics

9 In , the daily wage rates of male unskilled workers in Agricultural Sector showed an increase of ` (15.91 percent) over At the same time for the female workers it was ` (16.59 percent). Table Average Daily-Wage Rates of Unskilled Workers in the Agricultural Sector (`) Average Daily Wage Rates of Paddy Field Workers Year Male % Growth over previous year Female (-) Source: Directorate of Economics & Statistics FOOD SECURITY Public Distribution System (P D S) % Growth over previous year Kerala is a food deficit State. Only 15% of the food grains required is produced here. Rest of the requirement is met from other States like Tamil Nadu, Andhra, MP, Bihar, Gujarat etc. Therefore, Public Distribution System is very relevant for the State, where there is more than 75 % deficit in food grain production. The Public Distribution System in the State, came into existence from with the implementation of Kerala Rationing Order, The coverage of ration population is nearly hundred percent The prime objective of the Civil supplies Department is to run the Public distribution System in an effective manner and to ensure that rationed articles are made available to consumers at subsidized price fixed by the Government. The department is also responsible for ensuring availability of essential commodities in the market at reasonable prices as well as to prevent unfair trade practices like hoarding undue profiteering and black-marketing Today the Civil Supplies Department has to administer a PDS that caters to the needs of ration cardholders (as on June 2010) by making available rationed articles at subsidized price through a network of 336 Authorized Wholesale Dealers, 295 Kerosene Wholesale Distributors and Authorized Retail Dealers. Table shows the Public Distribution Profile of Kerala from to Table Public Distribution system in Kerala Profile to Sl. Items Unit No 1 No. of Ration Cards and Permits a) Raton cards for families as on I st April No

10 107 b)ration permits for institution as on I st April,, No. of FCI Sub Depots as on I st April,, No. of Wholesale shops as on I st April,, a)co-operatives b)supply co,, 10 c)others,, d)total Wholesale shops,, No. of Retail shops as on I st April a)co-operatives,, b)others,, c)total Retal shops,, Sugar (Allotted) MT Bale oil (Allotted) MT 7 Kerosene (Allotted) KL Source: Directorate of Civil Supplies Salient features The Targeted Public Distribution system (TPDS) in the State has been implemented with effect from as decided by the Govt. of India. Accordingly families under APL and BPL categories have been identified and distinctive ration cards under each category have been issued and food grains distributed to the families under each category at different prices Though the Government of India had approved lakh families (25.43% of BPL population as on ) under the BPL category, the State Government have identified lakhs families as under BPL category including AAY. Out of the cardholders in the State, families are under APL, families are under BPL and families are under AAY scheme. Food grains are allotted by the Government of India for distribution to AAY cardholders at the rate of 35 Kilograms and for BPL KG per month for each family. During 2010 upto November, lakhs tonnes of rice and 8.36 lakh tonnes of wheat has been distributed through Public Distribution System in Kerala (source; Directorate Civil Supplies 2010). Month wise distribution of rice and wheat in metric tonnes under PDS from 2007 to 2010 is given in Appendix Food grain distribution through ration shops from April 2009 to March 2010 is given in Appendix District wise distribution of rice and wheat to BPL and APL families under PDS during 2010 is given in Appendix Retail prices of commodities issued through ration shops during 2010 is shown in Table Table Retail Price of Commodities issued through Ration Shops during August 2010 Sl. No. Items Price `/Kg. 1 RICE APL Card holders 8.90/2.00 BPL Card holders AAY Card holders Annapurna Scheme Free of cost 4 WHEAT

11 108 APL Card holders 6.70/2.00 BPL Card holders SUGAR BPL Card holders KEROSENE/Litre 9.30 to 9.70 Source: Directorate of Civil Supplies 2010 Scheme for Issue of food grains at ` 2/-per Kg Food grains at the rate of two rupees is being distributed to BPL/A.A.Y sections of card holders, as well as families of SC, ST, Fishermen, and Asraya in the State in Thiruvananthapuram District from and in other districts from onwards. The amount spent for the implementation of this scheme during financial year is ` crores (source: Directorate of Civil Supplies, 2010). Laborers belonging to the category of coir, cashew, Beedi, Bamboo, reeds, Plantation, Khadi, mat making, clay pot making and those laborers who have worked at least for 50 days under National Employment Guarantee Scheme are the beneficiaries of this scheme. Endosulfan victims have also been included in this scheme. Out of the amount of ` 245 crore earmarked for this purpose during , ` crores has been spent upto December Box 15.5 The Scheme for distributing food grains at the rate of two rupees has been extended to families of persons working in the unorganized sector also since June Source: Directorate of Civil Supplies Govt. have decided to include 40 lakh families in this scheme. Presently families belonging to B.P.L section, families belonging to A.A.Y sections and families belonging to A.P.L section have been included in the scheme. Now it has been decided to include 22 more new categories in the scheme viz; Traditional gold smiths, Tile company workers, Automobile repairing laborers, Works for cleaning & cooking in schools, Lottery workers, Auto rickshaw laborers, E.P.F Pensioners, Construction workers, Toddy workers, Physically handicapped, Workers in the Petrol bunk, Landless workers who are not members of the Agricultural labor welfare board, Motor workers, Handicraft workers, Cashew Plantation laborers, Tailors, Khadi employees of the Non governmental sector, Dairy farmers, Painting workers, Aged people, Paper handicrafts, Madrasa teachers. Identification of the beneficiaries under the scheme is going on and presently 27.2 lakh families are availing this benefit. Subsidy amount required for meeting the expenditure under this scheme is furnished below in Table and Table Table G.O.India G.O.Kerala Rate of Subsidy Subsidy Beneficiaries Price Price Issue needed APL Rice Kg. 4,14,00,000 APL Wheat Kg.s 70,50,000 4,84,50,000 Table Subsidy amount needed for implementing distribution of ` 2/- Item No.of Beneficiaries Quantity Allotted Rate of subsidy Subsidy needed per month BPL Rice lakh /MT

12 109 BPL Wheat lakh /MT AAY Rice 5.96 lakh /MT APLRice (Subsidy) lakh /MT APLWheat (Subsidy) lakh /MT TOTAL Annual Requirement Source: Directorate Civil Supplies National Food Security Act Although National Food Security Act is supposed to ensure food security for all citizens APL category is excluded from the purview of the Act. Further the BPL List is proposed to be pruned, based on the suggestions of Planning commission and Census data. At present the number of BPL cards, in Keala is 5 lakh more than the number approved by the Planning Commission. Therefore the benefits of PDS will be denied to 70% - 75% of the common man. This in turn will result in food insecurity. The quantity of food grains now allotted to BPL Families will be reduced and the primary responsibility of ensuring food security in the country will be thrust upon the State Government. It is also proposed to merge all the existing schemes into one which is meant for BPL families alone The Act also suggest for introduction of Food Security Allowance. But for a consumer state like Kerala, where only 15% of the total requirement is produced this is not recommendable. State will be forced to distribute rationed articles at the rates fixed by Govt. which takes away the freedom from States to distribute them at additional subsidized rates fixed by States. This results in a situation where the poorest of the poor loose food security. i) Anthyodaya Anna Yojana Scheme (AAY) This scheme for distributing 35 Kgs of rice is distributed to the poorest of the poor families under BPL Scheme per month, is being implemented since The number of beneficiaries under the scheme was initially fixed by the Government of India as 2,38,200 (15.33% BPL families). As part of tribal welfare measures, all the eligible tribal families have been included under the scheme as per G.O.(Rt) No.2853/2001/LSGD dated As decided by the Govt. of India during 2003 the number of beneficiaies under the Scheme has been enhanced to As part of further expansion of the scheme, the Government of India has enhanced the target to ( during 2 nd phase expansion and during 3 rd phase expansion). On completion of the 2 nd and 3d phase expansion the Government of India is allotting MTs of rice per month at the rate of ` 3/- per Kg. The State Govt. is meeting the expenses towards transportation and handling charges. The expenditure on this account comes to around 12 crores per year. ii) Annapoorna Scheme This scheme for distributing 10 Kg of rice per month free of cost implemented since February 2001 is meant for destitutes who are of and above the age of 65 years. The Government of India has fixed the target as individuals, being 20% of persons who are eligible for national old age pension but not getting the pension. From onwards the scheme has been transferred to the State. For implementing the scheme, an amount of Rs.334 Lakhs is required, out of which 280 Lakh is central Govt. share and ` 54 lakh is State Govt. Share. Table shows District wise distribution of food grain under AAY & ANP schemes for the year Monthly distribution of food grains under AAY & ANP Schemes is given in Appendix Sl. Table District wise Distribution of Food Grains under AAY and ANP Schemes RICE (in Mt)

13 110 No. Name of District Allotment AAY Lifting % of offtake against allotment Off-take Allotment Lifting ANP % of offtake against allotment 1 TVPM Kollam PTA Alappuzha Kottayam Idukki Ernakulam Thrissur Palakkad Malappuram Kozhikode Wayanad Kannur Kasaragod TOTAL Source: Directorate of Civil Supplies 2010 iii) Issue of ration cards to families without house number With the objective of bringing all the families under TPDS and to ensure food security, it has been decided to issue ration cards to all families residing without house number on the strength of residential certificates issued by the concerned member of local bodies. Issue of renewed ration cards affixing photo of head of family with laminated cover pages and barcode was completed by There after, application for new ration cards have been accepted. Facility for submission of online application for ration card also started with effect from Central Allotment of Sugar and Kerosene Central allotment of sugar was restricted to BPL card holders alone from February 2001 onwards. The allotment of sugar to Kerala was MT (up to November 2010 The Central allocation of Kerosene to the State was also reduced year by year. The allotment of Kerosene to Kerala was KL (Up to November 2010). Monthly distribution of Sugar and Kerosene from to is given in Appendix Offtake Figure 15.6

14 111 Source: Directorate of Civil Supplies. Figure Central Allotment of Kerozene(Lakh KL) Quantity Year Source: Civil Supplies Department.

15 112 Kerala State Civil supplies Corporation The Kerala State Civil supplies Corporation (Supplyco) was set up in the state in 1974 with a mission of food security for Kerala and acts as a second line of PDS in the State by distributing essential commodities like rice, pulses and spices at reduced prices through a network of 3045 outlets spread all over the State. Prices of essential items distributed by Supplyco is on an average 30% to 60% less than open market prices. The intervention of Supplyco in the, market in respect of essential commodities is of immense relief to the people of the state. The market share of Supplyco, which was around 16% two years back has now increased to 33%. The number of customers visiting the Supplyco outlets, which was 52 lakh in 2006 has gone up to above one crore per month during As per the Supplyco report, the number of outlets have increased from 2955 in to 2997 in Activities of the Corporation Intervention in the market on behalf of the Government for stabilizing the price of essential items including rice in the market. Retailing of FMCG items at price less than the open market price. The customers will get a price benefit of 3% -7% less than the open market price. Retailing of medicines by opening medical stores. Average 15% discount is allowed to the customers for medicine. Conducting special fairs for arresting the undue rise in prices in the open market during festival seasons like Onam, Bakrid, Ramzan, vishu, Christmas etc. Issue of essential items at subsidized rates, sabari branded products and other FMCG items to the ARD sabari stores and Theera maithry super markets opened by the TEAP. Act as a nodal agency for the paddy procurement scheme of the Government and distribution of Custom milled rice to the Ration retail dealers for issuing it to the cardholders. Arranging process of wheat and distribution of Fortified Atta through the Ration shops for the Government. Supplyco is also a dealer of petroleum products like kerosene, Petrol, diesel and LPG with 13 petrol bunks, 3 LPG outlets and one kerosene whole sale depot. Retailing of own branded products named Sabari, Curry powders, coconut oil, tea, coffee, spices are marketed under this brand name. Bulk sale of items to the institutions. Box 15.6 Act as nodal agency to implement e - Services the for programme Ration Cards of the GOI to start microbiology lab Department and of food Civil processing Supplies unit. has initiated the conversion of all the Ration Cards in the State to computer Supply generated of essential laminated item cards to the with Fair Price the photo hotels of selected the owner by the of District the card, Collectors in 2009 in each and completed Districts. it on 31 st March 2010, by issuing 68 lakh cards using the Ration Card Management system Software. Implementation The Department of Tribal scheme, launched BPL the family facility welfare for scheme online submission etc. of application forms for Act Ration as a nodal Card agency transactions for the such distribution as Issue of of the New MDMS, Ration Levy Card, Sugar Addition/Deletion and fortified Atta. of Members, Arranging issue of Reduction distribution certificate of school, items surrender at moderate certificate prices etc. to The the citizen school can children apply through online for Ration School Cards fairs. from his home or anywhere else by registering directly in the website of the Department or through common Service Centers like Akshaya. This web based application online facility was made available in all the 69 Taluk Supply/City Rationing Offices from September 2010 onwards. Altogether of people have registered in this website and applications for new Ration Cards, splitting and surrender of cards have been received. Altogether new Ration Cards have been distributed by the Taluk Supply Offices under this scheme. The system has helped in reducing the processing time. If all the accompanying documents are correctly provided, the department is equipped to issue the online applied cards with in 48 hours. Facility for mobile alert is also incorporated. The public can access the services round-the-clock all seven days from anywhere including filing Economic the applications Review 2010 and checking the processing status of applications.

16 113 Source: Directorate of Civil Supplies, The turnover of the Corporation increased to ` 1257 crores during from ` 992 crores in the previous year. The sales turnover during was ` 2284 crores registering an increase of percent compared to Progress in turn over from to is shown in figure Achievements of Supplyco during is highlighted in the Box 15.7 Fig Source: SUPPLYCO Box 15.7 Extended annual benefits of Rs.375 crores to the consumers of the state against subsidy of ` 82 crores.

17 114 Supplyco maintained profit of around Rs crores in the year Increase in sales turn over to 2284 crores. Increase in market share. Supplyco holds more than 1 crore potential customers. For extending the price benefit to more people, in financial year, 87 outlets including 9 medical stores have been opened. More tea brands like Green tea and leaf tea will be marketed under Sabari brand. Introduced Web based e-paddy procurement of Supplyco by which the Payments are made directly to farmers Bank Accounts, with no scope for any middlemen. A wheat floor mill under BOT model is being set up at Pathanamthitta, with a capacity to process 3000 MTs of wheat into Atta every month. Started premium outlet in Kochi International Air port and Apna bazaar in Kozhikkode Collectorate. Lowest purchase cost in the country is ensured through efficient e-purchase system. The State is included one among in the list of States where the consumer price index is the lowest. Modernized all outlets with computer, electronic weighing scales, etc. Reconciliation of all accounts of sales and Bank. Source: Directorate of Civil Supplies Table reveals the profit and loss account of the corporation from to While the income accrued from varius sources increased from ` crores in to ` 2, crores in , the expenditure also increased from ` crores to ` crores. The Corporation earned a profit of ` crores during and it continued in the financial year also by accruing a profit around ` crores and ` crores in Income Table Profit & Loss account of Supplyco During the year to (` Crores) Particulars (Prov) (Prov) Sales/Gov.Grant Other Income Increase in Stock in Trade Total Expenditure Material consumed Purchase of Trading goods Manufacturing and other Expences Interest and Bank charges Depreciation Total Profit/(Loss) (36.15) (18.44) (18.25) Source: Directorate of Civil Supplies

18 115 Mid-Day Meal Programme The Mid-day Meal Programme, aimed at providing nutritional support to primary school going children and to give boost to universalisation of primary education by increasing enrolment, retention and attendance, was introduced in 1995 by the Ministry of Human Resource Development. The centrally sponsored scheme originally covered the children of primary classes I to V in Government/Local bodies/government aided schools. The scheme was further extended to the children studying the Education Guarantee Scheme and Alternative Innovative Education centres also in October During Goverrnment of India has extended the scheme to UP section (Std VI to VIII). The Mid Day Meal Scheme is being implemented in the state under central assistance as well as under State Scheme. The Government of India provides 100 grams of rice to primary children and 150 grams of rice to upper primary students per day. Government of India provided cooking cost ` 1.58 for primary and ` 2.10 for upper primary students per day The supply of commodities to schools for Noon-Meal scheme in Kerala is entrusted to supply co. The required quantity of rice has been taken from FCI and the pulses from their own stock. The cost of food grains is met by Education Department. During the corporation supplied Qtls. of rice and Qtls of pulses to schools and about lakh children got the benefit of the scheme. Details of mid-day Meal Programme in the state during the last five years are given in the Table Table Mid-Day Meal Programme to Year No. of Children Supply of food grains(in Qtl) Schools benefited Rice Pulses Source: Directorate of Civil Supplies 2010 CONSUMER WELFARE FUND As per G.O(P) 9/07/FCS&CA dated 07/03/2007 the State Government constituted a State Consumer Welfare Fund similar to the Central Consumer Welfare Fund created as per the consumer Fund Rule The State Consumer Welfare Fund has taken voluntary efforts for promoting consumer movement and strengthening the awareness activities through financial support, particularly in rural areas. An amount of Rs.15 lakhs has been utilized in 2010 for All India Livestock Exhibition and Food Festival towards the contribution of the Civil supplies Department.

19 The major percentage of population is not aware of the Consumer Protection Act and Consumer rights. But the awareness campaign launched by the Government through electronic and print media has been effective especially in rural areas. With a view to create awareness among the consumers, it is decided to produce advertisement film for short duration (15-30 seconds) to telecast in various visual medias, through the Information & Public Relati0n Department Department has also decided to conduct campaign/seminars/classes for the consumers in various places of each district, especially in rural and backward areas with the help of Bureau of Indian Standard and also with the active involvement of Local Bodies, Legal Metrology Department, Volunatary Consumer Organizations, Consumer Clubs, President & Members of the CDRF, Kudumbashree Units and the District Information Officers. Financial support is being provided to the Non Government Organisations/Voluntary consumer Organisations for promoting consumer movement and to strengthen the awareness activities.