The public distribution system is criticised for encouraging the poor to satiate their hunger with cheap cereals at the expense of other non-cereal food items, thus indirectly aggravating deficiencies of protein and other nutrients. An in-depth analysis shows that this is not actually so; the consumption of some non-cereal foods increases with the consumption of cereals, indicating a complementary relationship. This becomes possible through the implicit savings the PDS generates for its beneficiaries, due to subsidised cereal prices. Despite this, nutrient deficiency among poorer sections persists, and a comprehensive expansion of the PDS introducing certain non-cereal foods into its ambit can help tackle this issue.