Targeting the Poor or Poor Targeting

Abstract

As part of the structural adjustment programme the Government of India, in 1997, introduced the Targeted Public Distribution System (TPDS) with the objective of targeting the food subsidies to the poor and reducing fiscal deficit. While the universal Public Distribution System (PDS) had several limitations, the Targeted PDS has only worsened the problem of ‘adequate access to food’ for the poor. This article examines the limitations of income targeting based on the official poverty line under the TPDS. The article argues that the TPDS has worked counter-productively to the policy objective of reaching the poor. As per the National Sample Survey (1999-2000) and the National Family Health Survey (1998-9), a significant proportion of the poor and food insecure suffer from severe malnutrition and calorific deprivation. With a large section of the population falling out of the TPDS the article suggests policy alternatives to ensure better ‘access to food’ for the poor and vulnerable.

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