India's Public Distribution System: Utilisation and Impact

Khera, Reetika

doi:10.1080/00220388.2010.506917

Cited by 104 publications

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“…In the literature on the PDS, it is commonly understood that the rich (or the privileged) tend to opt out of PDS consumption. The reason has to do with the inferior quality of PDS food grains compared to the more expensive, and presumably higher quality, food grains available in the market (Balakrishnan and Ramaswami, 1997;Himanshu and Sen, 2011 Khera (2011a) where this distinction is not made. Note also in passing that inferiority may be defined in a broader sense than contained in the claim that PDS food grains are of inferior quality.…”

Section: A Simple Modelmentioning

confidence: 99%

“…While this paper is similar in spirit to Khera (2011a), we extend her analysis in two key respects: a more flexible specification of consumption and an investigation of the effects of socioeconomic hierarchies. First, we estimate a more flexible specification of the consumption of PDS food grains (rice and wheat taken together) by using the price of PDS food grains and the price of open market food grains as separate regressors, instead of using their difference as a regressor, as specified by Khera (2011a Khera's (2011a) analysis by using interstate variation to tease out some important determinants of a well-functioning PDS.…”

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“…First, we estimate a more flexible specification of the consumption of PDS food grains (rice and wheat taken together) by using the price of PDS food grains and the price of open market food grains as separate regressors, instead of using their difference as a regressor, as specified by Khera (2011a Khera's (2011a) analysis by using interstate variation to tease out some important determinants of a well-functioning PDS.…”

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Social Hierarchies and Public Distribution of Food in Rural India

Basu

Das

2015

The Journal of Development Studies

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In this paper, we develop a simple model that shows that consumption of PDS food grains is significantly different between rich and poor households in states where the PDS functions relatively well; in places where the PDS is non-functional, the difference is not significant. Using household-level data from three recent thick rounds of the consumption expenditure survey (2004-2005, 2009-2010 and 2011-2012), we find evidence in support of the predictions from the model. This suggests that one way to make the PDS functional is to make it more accessible to poor and underprivileged households.

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Social Hierarchies and Public Distribution of Food in Rural India

Basu

Das

2015

The Journal of Development Studies

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“…This small effect of PDS distribution on total consumption might be due to a few reasons. First, wheat distribution is quite small -around 60 per cent is leaked (GoI, 2005;Khera, 2011a). Second, the dependent variable is total wheat utilisation, and hence, includes consumption for different purposes.…”

Section: T-values Are Given In Brackets For Column (1) and (2) Pds mentioning

confidence: 99%

“…Wheat wholesale market price (both harvest time and yearly average) changes are only slightly correlated with MSP changes (Table 1). For rice, all three prices, i.e., the MSP, and the two market averages are strongly correlated, which can be attributed to better functioning institutions (more efficient procurement, less leakage) in the 'rice' states than in the 'wheat' states (Khera, 2011a(Khera, , 2011b. Besides, in the case of rice, a higher share of marketed surplus is procured as compared to wheat.…”

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Modelling Indian Wheat and Rice Sector Policies

et al. 2015

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Tables Table 1 Correlation matrix of different prices for wheat and rice p.22 Table 2 Regressions for wheat production p.26 Table 3 Regressions of rice production p.27 Table 4 Procurement regression estimates p.30 Table 5 Regressions of wheat demand p.37 Table 6 Regressions of rice demand p.38 Table 7 Results of the public October stock level estimation p.46 Table 8 Regression for the private rice stocks p.48 Table 9 Foreign trade regression estimates p.52 The study revealed the strong impact of policy measures on production, procurement, stocks and trade. We detected several market distortions and mounting fiscal costs. Terms of use: Documents in EconStor mayWheat and rice supply strongly and significantly respond to the minimum support price (MSP). Wholesale prices at planting or lagged harvest time prices are largely irrelevant for production. The Food Corporation of India's (FCI's) procurement volume is driven by the production level and the difference between the MSP and market price. The signs of the estimated price elasticities of demand are consistent with the theory; however, for rice they turned out to be insignificant. Rice consumption turned out to be strongly influenced by distribution of subsidised rice, which can be linked to high coverage and subsidy under the public distribution system (PDS). In the case of wheat, the influence of subsidised wheat is much less pronounced, probably due to weaker functioning of the PDS for this grain.The public stock analysis suggests higher storage losses for rice (10 per cent) than for wheat (2 per cent). Public stocks are found to strongly crowd out private stocks but not to the same extent as public stocks are build up. Total exports are highly distorted by trade regulations.Therefore, there was no correlation detected between exports and domestic vs.international price difference in the case of rice and in the case of wheat, the correlation turned out to be contrary to theoretical expectations. The analysis of intra-year data revealed strong seasonality in prices, procurement and stock levels, in particular, for wheat (this was lower for rice).Starting from 2006-07, there is a clear upward trend in inflation adjusted costs of operating the public food procurement and distribution system, mainly because of rising procurement volume and MSPs. On the other hand, revenue has declined in real terms, due to lower real central issue prices and only marginal revenue from domestic sales and exports. As a...

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Food Security in India: The Imperative and Its Challenges

Narayanan

2015

Asia & Pacific Policy Stud

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India's Public Distribution System: Utilisation and Impact

Cited by 104 publications

References 2 publications

Social Hierarchies and Public Distribution of Food in Rural India

Social Hierarchies and Public Distribution of Food in Rural India

Modelling Indian Wheat and Rice Sector Policies

Food Security in India: The Imperative and Its Challenges

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