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Caselet Code : |
CLSDM038 |
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Publication date : |
2005 |
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Subject : |
Sales and Distribution Management |
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Industry : |
Government |
Length :
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5
Pages |
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Price : |
Rs. 100
(Detailed
Pricing Info) |
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Sales and Distribution Management Caselets
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Abstract
This caselet gives an insight into the Food Corporation of India (FCI) and its
Public Distribution system through fair price shops across India. It discusses
the benefit of this system during the drought in 2002 in India and also points
out the flaws in the system. Finally, it takes a look at the measures taken by
FCI to improve its operations.
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Issues:
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Rationale behind fair price shops
» Flaws in the FCI distribution system
» Measures to improve efficiency in FCI's
distribution system
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Key words:
FCI, Famine, Food Grains, Mandis, Minimum Support Price, Stock, Godowns, Jute
Bags, PDS, Fair Price Shops.
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Questions for Discussion:
1. FCI was set up to act as an apex organization for equitable distribution
of food grains to the lower end of society. However, it ended up with losses
and incurred huge inventory costs. What were the flaws in the operations of
FCI? How could it improve to achieve its objectives effectively?
2. FCI procured around 20-25% of the production of wheat and rice. However,
despite having an adequate quantity of food grains, it was unable to cater
to the needy masses effectively. How was the public distribution system
responsible for this inefficiency? Suggest some measures to improve the PDS
in India.
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