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Trends In Diversion Of Pds Grain

  • Reetika Khera

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

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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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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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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  1. Howes, Stephen & Jha, Shikha, 1994. "Public distribution of food in India: a comment," Food Policy, Elsevier, vol. 19(1), pages 65-68, February.
  2. Reetika Khera, 2011. "India's Public Distribution System: Utilisation and Impact," Journal of Development Studies, Taylor & Francis Journals, vol. 47(7), pages 1038-1060.
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