Functioning of the Public Distribution System in India

Abstract

The Public Distribution System (PDS) continues to be a major instrument of food security for the poor in the Indian subcontinent. This paper examines how efficiently food is being delivered under this food subsidy scheme and measures the extent of diversion of food meant for the poor. The study is based on a large primary survey of 12 states surveying 1,000 households from each state over six consecutive months. The findings indicate huge identification errors and incidences of diversion of food, especially in the case of households below the poverty line. The gross failure of identification of the correct beneficiaries in almost all the selected states raises a major question about the very genesis of this subsidy scheme.