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Trends In Diversion Of Pds Grain

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  • Reetika Khera

    (Department of Humanities and Social Sciences Indian Institute of Technology & Centre for Development Economics, Delhi School of Economics, Delhi, India)

Abstract

This article estimates the proportion of grain "diverted" from the Public Distribution System (PDS) to the open market for several years in the past decade, by matching state offtake figures published by the government, with household purchase reported by the National Sample Survey (NSS). The limitations of this methodology are discussed, and alternative estimates are presented to crosscheck estimates obtained by using the conventional method. Though the alternative estimates are not very different, the discussion here indicates that estimates of diversion must be treated as an upper-bound. At the all-India level diversion of grain remains a serious issue, however, state-level trends reveal interesting contrasts. Based on contrasting trends in monthly PDS purchase (per capita) and estimated diversion, states are categorized into three groups - "functioning", "reforming" and "languishing" states. The paper also discusses possible reasons for the improvement in the PDS in the reforming states.

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Bibliographic Info

Paper provided by Centre for Development Economics, Delhi School of Economics in its series Working papers with number 198.

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Length: 26 pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:cde:cdewps:198

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References

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  1. Reetika Khera, 2011. "India's Public Distribution System: Utilisation and Impact," Journal of Development Studies, Taylor & Francis Journals, vol. 47(7), pages 1038-1060.
  2. Howes, Stephen & Jha, Shikha, 1994. "Public distribution of food in India: a comment," Food Policy, Elsevier, vol. 19(1), pages 65-68, February.
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Cited by:
  1. Archishman Chakraborty & Parikshit Ghosh, 2013. "Character Endorsements And Electoral Competition," Working papers 234, Centre for Development Economics, Delhi School of Economics.
  2. Khera, Reetika, 2014. "Cash vs. in-kind transfers: Indian data meets theory," Food Policy, Elsevier, vol. 46(C), pages 116-128.
  3. Jean Dr├Ęze & Reetika Khera, 2013. "Rural Poverty And The Public Distribution System," Working papers 235, Centre for Development Economics, Delhi School of Economics.
  4. Mehta, Aashish & Jha, Shikha, 2012. "Corruption, food subsidies, and opacity: Evidence from the Philippines," Economics Letters, Elsevier, vol. 117(3), pages 708-711.
  5. Neeraj Kaushal & Felix Muchomba, 2013. "How Consumer Price Subsidies affect Nutrition," NBER Working Papers 19404, National Bureau of Economic Research, Inc.
  6. Kaushik Basu & C Marks, 2011. "Understanding Inflation and Controlling It," Working Papers id:4481, eSocialSciences.

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