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India's Public Distribution System: Utilisation and Impact

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Author Info

  • Reetika Khera

Abstract

This article studies the effectiveness of India's Public Distribution System (PDS) as a food security intervention, using field survey data collected by the author in Rajasthan. Utilisation is low, and many households purchase wheat from the market at higher prices before exhausting PDS quotas. This 'puzzle of under-purchase' is analysed by extending the dual-pricing model to account for supply-side (for example, diversion) and demand-side (for example, transaction costs) constraints. Primary and secondary data as well as field observations suggest that under-purchase is mainly due to supply constraints. I also find that the PDS affects the composition (away from more nutritious 'coarse cereals'), rather than level, of cereal consumption.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00220388.2010.506917
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 47 (2011)
Issue (Month): 7 ()
Pages: 1038-1060

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Handle: RePEc:taf:jdevst:v:47:y:2011:i:7:p:1038-1060

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Web page: http://www.tandfonline.com/FJDS20

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Citations

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Cited by:
  1. Reetika Khera, 2011. "Trends In Diversion Of Pds Grain," Working papers 198, Centre for Development Economics, Delhi School of Economics.
  2. Lentz, Erin C. & Barrett, Christopher B., 2013. "The economics and nutritional impacts of food assistance policies and programs," Food Policy, Elsevier, vol. 42(C), pages 151-163.
  3. Raghbendra Jha & Simrit Kaur & Raghav Gaiha & Manoj K. Pandey, 2012. "NREGS and TPDS in Rajasthan and Madhya Pradesh: Complements or Substitutes?," ASARC Working Papers 2012-01, The Australian National University, Australia South Asia Research Centre.
  4. Kaushik Basu & C Marks, 2011. "Understanding Inflation and Controlling It," Working Papers id:4481, eSocialSciences.
  5. Basu, Kaushik & McGavock, Tamara & Zhang, Boyang, 2013. "When competition corrupts : a theoretical analysis of market structure and the incidence of corruption," Policy Research Working Paper Series 6596, The World Bank.
  6. Goli, Srinivas, 2011. "Conundrums in public distribution system in India: an assessment by states and social groups," MPRA Paper 53450, University Library of Munich, Germany.
  7. Andaleeb Rahman, 2014. "Revival of rural PDS: Expansion and outreach," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2014-012, Indira Gandhi Institute of Development Research, Mumbai, India.
  8. Mehta, Aashish & Jha, Shikha & Quising, Pilipinas, 2013. "Self-targeted food subsidies and voice: Evidence from the Philippines," Food Policy, Elsevier, vol. 41(C), pages 204-217.
  9. Jha, Raghbendra & Gaiha, Raghav & Pandey, Manoj K. & Kaicker, Nidhi, 2013. "Food subsidy, income transfer and the poor: A comparative analysis of the public distribution system in India's states," Journal of Policy Modeling, Elsevier, vol. 35(6), pages 887-908.
  10. Mehta, Aashish & Jha, Shikha, 2014. "Pilferage from opaque food subsidy programs: Theory and evidence," Food Policy, Elsevier, vol. 45(C), pages 69-79.

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