Vasundhara’s Annapurna – PDS makeover in Rajasthan

Poverty and accompanying hunger is a cursed challenge and every cultured civilization attempts to minimize severe effects of poverty in their own way. The Public Distribution System in India, the largest distribution network of its kind in the world, is India’s safety net for hunger, introduced around World War II as a wartime rationing measure. Given its infamous repute, it is not a surprise that PDS needs complete reorienting for ensuring effective reach to the remotest and the most disadvantaged areas of the country. In our Country, with millions of poor, we cannot dispense with this net altogether. We have no option but to patch the net, establish it anew, with only the needy households under it.

Rajasthan has recently become the role model for ‘everything reform’ in the Public sector. For the first time in ages, an attempt has been made by the Government of Rajasthan to revamp its regulations and remove old, archaic laws. Policy reforms being introduced in almost every sector significant to a citizen’s life has brought about a sense of rejuvenation in the entire system. There is no doubt that this entire revolution of modernization and simplification – this zeal to change the State into an attractive destination – both for living and investing, devising radical new ways to deliver State services – this enthusiasm and hope seen within the system and in the people of Rajasthan – all of this can be accredited to the leadership of the first woman Chief Minister of the State Smt. Vasundhara Raje. It’s not surprising that many a citizens have started calling the State ‘Rajesthan’.

A significant effort by the Raje Government has been the endeavor to revitalize the state of the Public Distribution System in the State. In October 15, Chief Minister Vasundhara Raje announced the Annapurna Bhandar Yojna, India’s first modernized Public Distribution System. It is said that the name and logo for the scheme is CM’s brainchild. A believer of Public-Private partnerships, the Government signed a MoU between Rajasthan State Food and Civil Supplies Corporation and Future Consumer Enterprise Ltd. (FCEL), a Future Group company, to remodel the Public Distribution System by delivering improved quality multi-brand consumer commodities at reasonable and economical prices to the public through existing Fair Price Shops in Rajasthan. In the initial phase, the Annapurna Yojana (scheme) will be functioning through 5000 Fair Price shops in the state. With releasing an open Tender for e-Procurement, the Work order was issued to the Future Consumer Enterprise Ltd. after completion of the process. As a private partner, Future Consumer Enterprise Ltd will supply better quality consumer goods at affordable prices; train the FPS dealers in modern retail management and implement best modern retail practices thereby upgrading these Fair Price Shops into a new format. It is not surprising that not many companies showed much interest or bended to the demands of the Rajasthan Government given the sad state of affairs in the PDS across the country. Yet, the Future group became a keen and enthusiastic partner. Surely the Government was sceptical as to how such a big retail chain was keen to deliver goods at the highest discounted rates. Mr. Kishore Biyani, CEO, Future Group said, “We are honored to be part of this unique PPP model with Rajasthan government. We are committed to take the benefits of modern retail, fair prices and choice of wide range of quality products to the common people of Rajasthan. This innovative PPP model will have dual benefit of Public Distribution System and Modern Retail in reaching out to people in urban, semi-rural and rural areas, thus empowering these common people with choices of affordable branded products for their daily consumption. Rajasthan is leading with this reform, our primary interest lies in the fact that many more States will follow the lead, and we would be their first choice as partners! ”

Chief Minister of Rajasthan, Vasundhara Raje remarked, “By providing daily quality consumer goods at a fair and a competitive price, this PPP agreement with FCEl opens a new era in the history of India’s Public Distribution System. The ‘Annapurna Bhandar Yojna’ will strengthen our effort in bringing about a positive change and bettering the daily lives of the people of Rajasthan. Annapurna Bhandar stores will act as ‘Rural malls’ for the villages of Rajasthan.” CM Raje, pointing out the most fascinating aspect of this scheme, added “I believe this will become India’s biggest entrepreneurship drive with 25,000 FPS dealers turning into entrepreneurs with Annapurna Bhandar. I got the inspiration of this model from a store in Tamatia at Dungarpur district where I saw one store that comprised of a Ration shop, small bank, khaad beej and grocery products. Look what the idea has now turned into!”

The biggest beneficiaries of the Annapurna Bhandar Scheme will be the general public. Public Distribution System has hardly been public and the product quality getting degraded by the day due to lack of competition. With the Annapurna Bhandar Scheme, a bulk discount will be shared by FPS dealers and the consumers in ratio of 40:60, leading to an sdditional income of Rs. 5,000/- to 8,000/- pm to FPS dealers and quality products at competitive prices (2-30% less than MRP) to consumers, truly making the consumer the winner. While 5,000 Fair Price Shops are being re-modelled to run as Annapurna Bhandars in the first phase, till date 170 Annapurna Bhandars have already been running and around 900 are ready. 2,000 Annapurna Bhandars are targeted to be up by March 2016 & 5000 by June 2016. It is hard to believe that our much detested Fair Price Shops will now be home to a wide variety of goods such as oil, ghee, pulses, jaggery, varied spices, different types of flours, pickles and sauces, personal care products such as talcum powder, hair oil, shampoo, creams, razors, toothbrushes and sanitary napkins, home care products such as phenyls, toilet cleaners, detergent bars and powders, mosquito repellant, stationary products such as pens, pencils, notebooks, snack products such as noodles, wafers, biscuits, chocolates – over 145 branded items would be available at these shops. These products would be available not just to the over 4 crore ration beneficiaries of the state, but to anyone who desired to buy from Annapurna outlets.

These Rural Malls have been very well received both by consumers as well as ration dealers in rural markets. A dealer in Naugavan village of Alwar district, Girdhari Lal cites the scheme as a blessing for both business and his customers. He says that before the Annapurna Bhandar opened in his village, villagers used to travel to the neighboring village in Haryana, devoting unnecessary effort, time and money to buy commodities. He exclaims, “In fact, people from Haryana come to buy goods from our Annapurna store!”Another Annapurna dealer Girdhari Lal says, “After opening Annapurna store, I’ve earned 1 lakh 80 thousand rupees so far, and daily an average of 7 thousand people buy goods. Annapurna stores not only help the consumers save, but have also increased the income of the dealers. Now when the consumer comes to the store to buy ration, inventory, he saves his time and convenience by buying other goods at the same place.” Babulal, who is a customer of Girdhari’s new store says, “We’re so happy to get rid of the adulteration. Happy to see that the Government has realized that even the people in villages need quality in their consumer goods.”

It is heartening for every citizen to see the new avatar of Ration shops – clean, organized and sporting orange branding with an intricate Annapurna logo. India has ignored the needs of consumers for far too long. The launch of the Annapurna Scheme comes as a breath of fresh air for the tired and tried janta – a revered hope for all of us that quality and just prices can mutually exist.