ROLE OF PUBLIC DISTRIBUTION SYSTEM IN POVERTY ALLEVIATION

D.Lavanya Kumari; Prof. K. Santha Kumari

Volume : VI, Issue : IV, April - 2016

ROLE OF PUBLIC DISTRIBUTION SYSTEM IN POVERTY ALLEVIATION

D. Lavanya Kumari, Prof. K. Santha Kumari

Abstract :

The main objective of this paper to examine the role of Public Distribution System (PDS) in India in poverty alleviation. The Public Distribution System (PDS) distributes subsidized food and non–food items to India’s poor. Major commodities distributed include staple food grains, such as rice, wheat, sugar, and kerosene, through a network of fair price shops also known as Ration shops established in several stages across the country. This paper investigates the effect of food subsidy through Public Distribution System on poverty and food security in India. The study used fiscal transfer method to estimate the subsidy transfer through PDS and its indirect benefits as a window for the poor to escape poverty and improve food security. Public Distribution System (PDS) evolved as a system of management of scarcity and for distribution of food grains at affordable prices. Over the years, PDS has become an important part of Government’s policy for management of food economy in the country. PDS is supplemental in nature and is not intended to make available the entire requirement of any of the commodities distributed under it to a household or a section of the society. The robustness of the results was checked based on propensity score matching (PSM) technique. The study established that, the effectiveness of PDS has improved over time and PDS emerged as an effective tool in targeting the twin problems of poverty and under–nourishment in the country