ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Trends in Diversion of Grain from the Public Distribution System

This paper estimates the proportion of grain diverted from the public distribution system to the open market in the past decade by matching official offtake figures with household purchase reported by the National Sample Survey. At the all-India level, diversion of pds grain remains a serious issue; however there are interesting contrasts at the state level. Based on trends in monthly per capita purchase of pds grain and estimated diversion, states are categorised into three groups - "functioning", "reviving" and "languishing" states. The paper also discusses the possible reasons for the improvement in the pds in the reviving states and questions the assessment of the pds as uniformly and irreversibly dysfunctional.

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