India's Public Distribution System: Utilisation and Impact

Reetika Khera

140 citations0/0 files storedThe Journal of Development Studies

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Economics of Agriculture and Food Markets Food Security and Socioeconomic Dynamics Agricultural Economics and Practices

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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References

2001Econometric Analysis of Cross Section and Panel Data 1997The analysis of household surveys 2017Economic and Political Weekly 2013Poverty and Self-Control

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