Corruption and malpractice are rampant in the public distribution system (PDS) in Bihar: ration-card holders are often turned away from fair-price shops they are assigned to and large quantities of grain and kerosene meant for the poor get sold in the open market.

With coupons, beneficiaries can go to another fair-price shop if they are turned away at one. Every month each BPL family is entitled for 10 kg wheat, 25 kg rice and five litres of kerosene.

Bihar is the first state to introduce this scheme. Nitish Kumar had spoken of the scheme at The Idea Exchange, an interaction with The Indian Express staff, in December. Of the shortcomings in the PDS, he had said: “For example, kerosene is a necessity for people in our state but most often it gets black-marketed. Now coupons will be issued and people will get kerosene against the coupons.”

Launching the scheme at the Jamaluddin Panchayat in Patna district on Republic Day, he said: “It is not a simple coupon but a powerful weapon in the hands of the poor. This will empower the poor and stop black-marketing.”

Other ministers launched the scheme in other districts of the state.

The coupon scheme has earned laurels from several quarters, and recently Planning Commission member Abhijit Sen praised the effort, saying it must be emulated by other states.

Under the scheme coupons will be distributed every month to BPL families through elected panchayat gram sabhas. Each BPL family will be given a bunch of coupons for the entire year. The coupons can then be exchanged for kerosene and grain at subsided rates from fair-price shops.

PDS dealers will be given allotments of grain every month only against the coupons they submit. Therefore, they will not be able to corner extra stocks, deny it to the poor, and then sell it in the open market.

The CM said there were more BPL families in Bihar than indicated in the Centre’s list. He said the Centre should raise the cut-off point for identification of BPL families.

“As per the allotment of food grain and kerosene made by the Centre, we can serve only around 65 lakh BPL families in the state. We want that the cut-off point be raised from 13 to 16 points and then we can help around one crore poor families in the state,” he said