Food subsidy, income transfer, and the poor: A comparative analysis of the public distribution system in India's states

Abstract

This chapter first analyses the real income transfers through PDS, and the reasons why these transfers are so small, followed by an examination of the (potential) contribution of the National Rural Employment Guarantee Scheme (NREGS) and the Public Distribution System (PDS) in mitigating the extent and severity of undernutrition (including micronutrient deficiency). From a policy perspective and responding to the current debate on the National Food Security Act, it is argued that a universal food subsidy is unlikely to remedy the dismal performance of the PDS, as leakages and wastages�already enormous�would be much higher. Show more