India's Public Distribution System: A National and International Perspective

This study examines the impact of India's Public Distribution System (PDS) on poor households in terms of income gains, reductions in the incidence and severity of poverty, as well as nutritional improvements. The study suggests that the welfare gains of PDS in terms of income transfer were very meager and the impact on poverty and nutritional status minimal. The study places PDS in the context of other anti-poverty programs and provides a brief review of the findings from previous research on PDS. It analyzes the cost of PDS borne by the Central Government for selected years; and also reviews the recent PDS developments and their likely impacts on the poor. The study measures the extent of income transfer. It also assesses the cost-effectiveness of PDS relative to other programs and evaluates the rice subsidy program in the state of Andhra Pradesh. The study provides an overview of international experience concerning food transfer, with particular reference to lessons from various approaches to targeting and design of programs.