Rural Poverty and the Public Distribution System -Jean Dreze and Reetika Khera

Presented are estimates of the impact of India’s Public Distribution System on rural poverty, using National Sample Survey data for 2009-10 and official poverty lines. At the all-India level, the PDS is estimated to reduce the poverty-gap index of rural poverty by 18 to 22 percent. The corresponding figures are much larger for states with a well-functioning PDS, e.g. 61 to 83 per cent in Tamil Nadu and 39 to 57 per cent in Chhattisgarh.

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