The Public Distribution System in Bihar: An Assessment of the Coupon System

Abstract

The Targeted Public Distribution System (TPDS) in India plays an important role in providing food grains to the poor at subsidised prices. However, it has not been very successful in accomplishing its objective in many states. To make the distribution of cereals more effective, Bihar replaced the ration card with a new instrument of delivery in 2008—a 12-page booklet of coupons to be given annually to beneficiaries. This study, based on a panel survey conducted in 18 villages across three districts of Bihar, evaluates the new system. It argues that the innovation has been successful on four counts: power relations have changed between beneficiaries and powerful dealers of fair price shops through which food grains are distributed; leakages have reduced; beneficiaries have been empowered by making information available; and demand-side pressure from below has been generated on supply-driven distribution channels. This article attributes the better distribution of food grains since 2008 in the state to political expediency, administrative measures and to the coupon system, even though administrating it is much more challenging. Finally, the essay argues that the TPDS in the state needs a complete overhaul, as a piecemeal approach, such as introducing the coupon system, has a limited impact.