Abstract

This chapter is about research on state intervention in markets, and in particular the public food distribution system as it operates in India.1 The public food distribution system (PDS) dates from the Second World War. Although the system has changed in size, nature and coverage over the years, the most important objectives have been more or less stable since the 1960s. These are (a) to stabilise food prices; (b) to guarantee remunerative prices to foodgrain producers; and (c) to make foodgrains available to the vulnerable sections of the population. The system is, in fact, a rationing system. The government procures large quantities of foodgrains, mainly rice and wheat, keeps a buffer stock to be used in difficult circumstances, and distributes the grains on a more-or-less permanent basis to consumers/ration card holders. Although food distribution is under the aegis of central government, major differences exist between different Indian states, with regard to the quantities and prices of the distributed commodities, allocation to particular target groups, the efficiency of the system, and the modes of foodgrain procurement.

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