ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Public Distribution of Rice in Andhra Pradesh: Efficiency and Reform Options

This paper explores various efficiency aspects of the Rs 2 a kg rice scheme, which has been relaunched in Andhra Pradesh. The statistical analysis suggests a substitution of demand between the open market and public distribution system purchase in response to changes in the open market price of rice in the state. An examination of the consumer benefit and subsidy burden involved in the rice scheme during 1983-2007 indicates that the gap between the two typically remained small. In the light of the central government's pds reform package, the paper suggests strategies for a cost-effective pds management in Andhra Pradesh.

Domestic Terms of Trade in a Three-Sector Framework

The domestic terms of trade issue in India has mostly been addressed by analysing the terms of trade between an "agriculture" and "industry" sector. An increasing share of the Indian GDP today however originates from a "third" service sector. The presence of a large service segment necessitates a switch from the two-sector to at least three-sector framework of terms of trade analysis. This paper estimates the terms of trade effect for these three domestic sectors across India and in 15 major state economies. The results confirm the crucial role played by services in determining the terms of inter-sectoral trade.
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