Patna, April 24: A survey suggests leakage in the public distribution system (PDS) in Bihar has dipped drastically from 90 per cent in 2004-05 to 20 per cent in 2014.

The survey was conducted jointly by Allahabad University and IIT-Delhi to know the ground situation a year after the National Food Security Act was launched in Bihar. Noted economist Jean Dreze led the team.

"Around 5-10 years ago, fewer people used to get grains from PDS shops, but now things have improved as leakage is down to 20 per cent. It is still higher than in states like Chhattisgarh and Odisha, but it's a commendable job, as things were quite different a decade ago," Dreze, a visiting professor of economics at Ranchi University, told reporters here. PDS coverage is today more inclusive, distribution more regular and quality of rice and wheat has improved, he said, adding: "Just 50 per cent of reforms have been undertaken to nail leakages in PDS in the state. It's not a horror story." The figures might seem very optimistic given that Dreze's survey was confined to just 1,000 households in just four districts - Banka, Gaya, Purnea and Sitamarhi - last December.

To substantiate the survey, IIT-Delhi's associate professor of economics Reetika Khera said that during 2004-5, the bulk (as high as 90 per cent) of PDS rice and wheat would get diverted to the black market.

As per a National Sample Survey Organisation (NSSO) report, leakages were 90 per cent in 2004-05, 75 per cent in 2009-10, 50 per cent in 2010-11 and 20 per cent in 2011-12. Reethika citedthe 2013 Public Evaluation of Entitlements Programme (PEEP) report, which puts leakages at around 25 per cent. The India Human Development Report and World Bank report, too, put the figure (of leakages) at 20 per cent, she said.

The Dreze-led report said households with a new ration card had received 76 per cent of their PDS entitlements. They received 3.8kg of wheat or rice per person, instead of 5kg per person. It said 81 per cent of respondents said the quality of PDS rice was "good" or "average" while 91 per cent felt the same about wheat. The report maintained distribution through PDS was highly irregular, often delayed by a month or two. It suggested that distribution take place on fixed dates each month throughout the state. Besides, PDS dealers routinely charge people higher than the stipulated price - Rs 4 per kg for rice instead of Rs 3 per kg. It also suggested reintroduction of the coupon system for PDS.

Terming Bihar and Jharkhand hunger capitals, Dreze said: "PDS is very necessary to protect people from hunger. There is no other tool to deal with hunger... No state in India needs NFSA better than Bihar. No state in India can benefit better than Bihar with NFSA."

In reply to a query, he strongly opposed giving foodgrain through PDS through cash transfer scheme.

"Cash transfer is not an option. This is not good for Bihar today or tomorrow," Dreze said while citing the example of Pondicherry (now Puducherry), which introduced cash transfer scheme but soon reverted to the old PDS.