Subsidised Foodgrains Transfer for Household Food Security: Comparison of Changing Consumption From the Public Distribution System Against Other Staple-Sources in Rural India

This study evaluated the effect of subsidised in-kind transfers on household food security by comparing the calorie consumption share between the Public Distribution System, India, and other sources. Using the pseudo-panel of NSSO-CES data from 1993, 2004, and 2009, and the latest 2011 (released in 2014), the study found that the share of home-produced foodgrains was supplanted by PDS. The analysis revealed a negative elasticity of per-capita calorie intake to the decline in PDS subsidies, after controlling for socioeconomic and spatial attributes. Regional interactions with elasticity were statistically significant in regions with greater vulnerability to food insecurity. Strengthening the in-kind subsidised transfer is recommended as a crucial strategy, given the continued decline in the share of home-grown sources.