Bihar shows the positive way: Use vouchers, choose your ration shops

New Delhi, November 21: Bihar will be the first state in the country to modernize its public distribution system (PDS) by introducing vouchers to claim benefits. The process of shifting from the existing arrangement of purchasing from ration shops to the voucher system has already begun and it is likely to be launched within three months.

This was disclosed by the Bihar Chief Minister Nitish Kumar here today at Idea Exchange, an interaction with The Indian Express staff.

Under the new voucher system, Kumar said, all targeted households will be supplied with a fixed quota of vouchers which can then be redeemed at any PDS shops of choice. The vouchers collected by these shops can then be encashed by ration shops from the government.

“This will strengthen the delivery mechanism under PDS,” he said .

The number of vouchers collected by a ration shop would act as a performance indicator indicating public preference for “better shops” which would also help enhance accountability. This, in turn, would ensure that a larger share of civil supplies would then be provided to these outlets.

Ration shops have been notoriously famous for malpractices where supplies, like wheat, rice, sugar and kerosene oil, meant for the poor is usually diverted to the black market and poor families end up losing substantial part of government subsidies.