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\hypersetup{pdftitle={Public Distribution System vs. Market: Analysis of Wheat and Rice Consumption in India },pdfauthor={Marta Kozicka, Regine Weber, Matthias Kalkuhl},pdfsubject={Tropentag 2016: Abstract},pdfkeywords={Food security, India, policies, Targeted Public Distribution System },pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 18-21, 2016, Vienna, Austria}}\\[1ex] \Large{``Solidarity in a competing world ---\\fair use of resources''\\[2ex]}}
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\Large{\textbf{Public Distribution System vs. Market: Analysis of Wheat and Rice Consumption in India \footnote{\textbf{Contact Address:} Marta Kozicka, University of Bonn, Center for Development Research (ZEF), Dept.of Economic and Technological Change, Walter-Flex Str. 3, 53113~Bonn, Germany, \mbox{e-mail}: \email{marta.kozicka@uni-bonn.de}}\\[0.8ex]}}
\normalsize{\textsc{Marta Kozicka$^{1}$, Regine Weber$^{2}$, Matthias Kalkuhl$^{3}$}}
\end{center}
\begin{itemize*}
\item[]{\small{\textit{$^{1}$University of Bonn, Center for Development Research (ZEF), Dept.of Economic and Technological Change, Germany}}}
\item[]{\small{\textit{$^{2}$University of Bonn, Center for Development Research (ZEF), Dept. of Economic and Technological Change, Germany}}}
\item[]{\small{\textit{$^{3}$Mercator Research Institute on Global Commons and Climate Change (MCC), }}}
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\index[author]{Kozicka, Marta}
\index[author]{Weber, Regine}
\index[author]{Kalkuhl, Matthias}
\begin{center}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
Despite the large"=scale antipoverty programs, especially food and nutrition programs, 15\,\% of Indian population is undernourished. India's current implementation of the world largest food aid program, the National Food Security Act (NFSA), experiences many challenges and needs rigorous analysis. 



The current study analyses the reasons for no take"=up or under"=purchase of the PDS grains on all-India level. Specifically, the research questions are: How efficiently does the PDS cover poor and traditionally underprivileged (like scheduled casts members) people? What is the scale of under"=purchase in different beneficiary groups? What are the reasons for under"=purchase? Is it due to supply constrains or demand reasons (consumer choices)? The analysis is based on the 68\textsuperscript{th} round of the Indian National Sample Survey (NSS) of Household Consumer Expenditure. 



The household consumption analysis using cross"=sectional econometric techniques reveals targeting errors of the Public Distribution System. There is a negative self"=selection of the richer households; however the migrant workers and female"=led households are not well covered. The Above Poverty Line quota seems to have higher leakage rate, which strongly affects consumption of the subsidised grains. For the Below Poverty Line cardholders, subsidised grains are imperfect substitutes for the market grains. Further, subsidised grains are found to increase total consumption of wheat and rice. Because of high targeting errors, higher total demand for wheat and rice might result in higher market prices and have negative consequences for the poor excluded from the system.
 To our knowledge, this is the first empirical analysis of the various targeting errors and reasons for under"=purchase on all India level. The results further contribute to the growing evidence that the PDS crowds in consumption of wheat and rice.



}

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\noindent \textbf{Keywords:} Food security, India, policies, Targeted Public Distribution System 
\index[key]{Food!Security}
\index[key]{India}
\index[key]{Policies}
\index[key]{Targeted Public Distribution System  }
\end{document}
