Preview

Pds in India

Powerful Essays
Open Document
Open Document
10348 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Pds in India
Research Paper No. 2006/98 The Public Distribution Systems of Foodgrains and Implications for Food Security
A Comparison of the Experiences of India and China

Zhang-Yue Zhou1 and Guanghua Wan2
September 2006 Abstract A comparative study of the public distribution systems of foodgrains in India and China is expected to reveal lessons and experiences that are valuable to policymakers. This is particularly important for developing countries in their endeavour to ensure food security. This paper undertakes such an exercise. The main features and developments of the two public distribution systems are first highlighted. This is followed by a comparative analysis of their similarities and differences. The role of public foodgrain distribution systems in ensuring food security is then evaluated. Finally, policy implications are drawn. Keywords: public distribution system, food security, poverty, food subsidy, India, China JEL classification: I31, I38, Q11, Q18

Copyright © UNU-WIDER 2006
1 School of Business, James Cook University, Australia email: zhangyue.zhou@jcu.edu.au; 2 UNU-WIDER, Helsinki, email: wan@wider.unu.edu

This paper was prepared for the UNU-WIDER project on Hunger and Food Security: New Challenges and New Opportunities, directed by Basudeb Guha-Khasnobis. The project was carried out in collaboration with the Indian Council of Social Science Research (ICSSR) and the UN Food and Agriculture Organization (FAO). UNU-WIDER gratefully acknowledges the financial contributions to its research programme by the governments of Denmark (Royal Ministry of Foreign Affairs), Finland (Ministry for Foreign Affairs), Norway (Royal Ministry of Foreign Affairs), Sweden (Swedish International Development Cooperation Agency—Sida) and the United Kingdom (Department for International Development). ISSN 1810-2611 ISBN 92-9190-882-7 (internet version)

Acknowledgements We wish to thank the participants at the Jaipur workshop for their comments on the paper. In



References: Acharya, K. C. S. (1983). Food Security System of India: Evolution of the Buffer Stocking Policy and Its Evaluation. New Delhi: Concept Publishing Company. Ahluwalia, D. (1993). ‘Public Distribution of Food in India: Coverage, Targeting and Leakages’. Food Policy, 18 (1): 33-54. Anon. (1995). ‘What Does the Reintroduction of Coupons Mean?’. Beijing Economic News, 17 September. Anon. (1996a). ‘Shanghai Adopts New Grain and Cooking Oil Distribution Methods’. Grain and Cooking Oil Market News, 8 March. Anon. (1996b). ‘Beijing Raised Grain Sale Prices’. Beijing Economic News, 2 July. Beijing Review (1994). ‘Social Security System Takes Shape’. Beijing Review, 21-27 February: 6. Cheng, S. H., P. Lu, and X. G. Yan (1987). ‘Decontrolling Grain Price Is an Inexorable Trend of the Development of Commodity Economy’. Problems of Agricultural Economics, June: 34-5. Dantwala, M. L. (1967). ‘Incentives and Disincentives in Agriculture’. Indian Journal of Agricultural Economics, 22: 1-25. Dantwala, M. L. (1993). ‘Agricultural Policy: Prices and Public Distribution System: A Review’. Indian Journal of Agricultural Economics, 48: 173-86. Deng, Y. M. (1991). ‘A Proposal on the Reform of the Grain Ration System and an Analysis of the Extent of Possible Support from Urban Dwellers’. Chinese Rural Economy, April: 10-15. Dev, S. M. (2002). ‘Public Intervention for Poverty Reduction in Asia: Macro Policies and Direct Programs’, in S. S. Acharya, S. Singh, and V. Sagar (eds), Sustainable Agriculture, Poverty and Food Security: Agenda for Asian Economies. Jaipur: Rawat Publications, 433-62. Dev, S. M., and M. H. Suryanarayana (1991). ‘Is PDS Urban Biased and Pro-Rich’. Economic and Political Weekly, 12 October, 26: 2357-66. 17 Ding, H. P. (1997). ‘A Study on Issues Related to the Reforms of China’s Social Security System’. Economics of Finance and Trade, 6: 48-9. Du, Y. T. (1989). ‘Retrospect and Analysis on the Grain Prices and Subsidy Policy in China’. Reference Materials for Economic Research, 26: 17-32. Dutta, B., and B. Ramaswami (2001). ‘Targeting and Efficiency in the Public Distribution System: Case of Andhra Pradesh and Maharashtra’. Economic and Political Weekly, 36 (18): 1524-32. FAO (2002). ‘World Food Summit: Five Years Later, Summit News’. Available at: www.fao.org/worldfoodsummit/english/newsroom/news/8580-en.html. Accessed 13 January 2006. FAO (2004). The State of Food Insecurity in the World 2004: Monitoring Progress towards the World Food Summit and Millennium Development Goals. Rome: FAO. George, P. S. (1996). ‘Public Distribution System, Food Subsidy and Production Incentives’. Economic and Political Weekly, 28 September. GOI (Government of India) (various years). Economic Survey. New Delhi: Ministry of Finance, Government of India. Gu, Q. F. (1990). ‘Grain Price Subsidy in China and Government Intervention in Grain Marketing, 1977-1986’. Grain Economy Research, 1: 21-4. Guo, M. Q. (2004). ‘On the Practice of a Social Security System in Rural Areas’. Journal of Chinese Youth College of Politics, 1: 112-6. Huang, Y. X. (1990). ‘The Grain Ration System Has to be Reformed Urgently’. Chinese Grain Economy, 6: 22-3. Jha, S. (1992). ‘Consumer Subsidies in India: Is Targeting Effective?’. Development and Change, 23 (4): 101-28. Jha, S., and P. V. Srinivasan (2004). ‘Achieving Food Security in a Cost Effective Way: Implications of Domestic Deregulation and Reform under Liberalized Trade’. MTID Discussion Paper No. 67. Washington, DC: International Food Policy Research Institute. Jharwal, S. M. (1999). Public Distribution System in India Reassessed. New Delhi: Manak Publications. Jiao, K. P. (1994). ‘The Social Security System in Reform’. China Today, 43: 18-20. Ka, L. (1995). ‘How to Comprehend the Reintroduction of Coupons’. Economic Daily, 22 February: 2. Ke, B. S. (1990). ‘Grain Price Systems in State Grain Marketing Sector and the Subsidy Problem’. Chinese Rural Economy, November: 44-50. Kozel, V., and B. Parker (1998). ‘Poverty in Rural India: The Contribution of Quantitative Research in Poverty Analysis’. Washington, DC: World Bank. Mimeo. Liu, X. A. (1998). ‘Towards a New Approach to Institutional Change in Rural China since 1949’. Brisbane: Griffith University. PhD thesis. 18 Liu, Y. Q. (1986). ‘On the Development of Grain Production and Marketing: Some Viewpoints on the Decontrol of Grain Price’. Problems of Agricultural Economics, June: 23-5. Liu, Y. Z., B. B. Zhou, H. B. Gao, and J. Chen (1986). ‘Non-Commercialization, SemiCommercialization and Commercialization: the Crux of and Solution to China’s Grain Problem’. Problems of Agricultural Economics, June: 18-22. Ma, L. Y. (1987). ‘The Relative Low Grain Price and the Ideas to Reform It’. Chinese Rural Economy, November: 4-7. Pal, S., D. K. Bahl, and Mruthyunjaya (1993). ‘Government Interventions in Foodgrain Markets: The Case of India’. Food Policy, 18 (5): 414-27. Parikh, K. S. (1994). ‘Who Gets How Much from PDS - How Effectively Does It Reach the Poor?’. Sarvekshana, January-March. Radhakrishna, R., K. Subbarao, S. Indrakant, and C. Ravi (1997). ‘India’s Public Distribution System: A National and International Perspective’. WB Discussion Paper No. 380. Washington, DC: World Bank. Ramaswami, B. (2004). ‘Reforming food Policies: The Costs and Impacts of Food Subsidies’. Paper presented at the Conference on Anti-Poverty and Social Policy in India, 2-4 January. Shen, H. (1999). ‘Grain Coupons and China’s 50 Years of Feeding the Population’. Fujian Reforms, 8-9: 34-9. Shi, R. J. (1997). ‘Establishing a Social Security System with Chinese Characteristics’. Journal of Lanzhou University, 25: 10-14. Spitz, P. (1985). ‘The Right to Food in Historical Perspective’. Food Policy, 10: 306-16. SSB (State Statistical Bureau) (various years). China Statistical Yearbook. Beijing: China Statistical Press. Swaminathan, M. (2000). Weakening Welfare: The Public Distribution of Food in India. New Delhi: LeftWord Books. Tian, W. M., and Z. Y. Zhou (2005). ‘Developments in China’s Grain Policies’, in Z. Y. Zhou and W. M. Tian (eds), Grains in China: Foodgrain, Feedgrain and World Trade. Aldershot: Ashgate, 11-23. Tyagi, D. S. (1990). Managing India’s Food Economy: Problems and Alternatives. New Delhi: Saga Publications. Wei, L. Y. (2003). ‘On Social Security for Rural Workers in Urban Areas’. Journal of Jiangxi Administration College, 5: 67-70. Yan, Z. X. (2003) ‘Government and Social Security: Theory and Policy’. Theory and Practice of Finance and Economics, 24: 44-7. Yu, X. H. (2003). ‘Issues Concerning the Establishment of a Social Security System for Rural Residents’ (in Chinese). The Economist, 1: 180-1. Yu, Z. L. (1987). ‘On Commercialization of Grains’. Problems of Agricultural Economics, June: 25-8. 19 Zhao, F. S., and X. Q. Qi (eds) (1988). Grain in Contemporary China. Beijing: Chinese Social Sciences Press. Zhou, Z. Y. (1997). Effects of Grain Marketing Systems on Grain Production: A Comparative Study of China and India. New York: The Haworth Press. Zhou, Z. Y. (1998). ‘China’s Food Security Practice: Retrospect and Prospect’. Paper presented to the Taipei International Conference on East Asian Food Security Issues in the 21st Century held 16-17 April. Taipei, Taiwan. Zhou, Z. Y., and V. P. Gandhi (2000). ‘Are Expenditures on a Government Food Distribution System Justified in Developing Countries?: Perspectives from a Comparative Study of India and China’. Paper presented to the 24th conference of the International Association of Agricultural Economists, August. Berlin. Zhou, Z. Y., and W M. Tian (2005). ‘China’s Grain: An Issue that is Here to Stay’, in Z. Y. Zhou and W. M. Tian (eds), Grains in China: Foodgrain, Feedgrain and World Trade. Aldershot: Ashgate, 229-39. Zhou, Z. Y., X. A. Liu, and N. Perera N. (2001). ‘Nutritional Poverty and the Role of PDS in India: An Inter-State analysis’, in S. S. Acharya and D. P. Chaudhri (eds), Indian Agricultural Policy at the Crossroads. New Delhi: Rawat Publications, 515-69. 20

You May Also Find These Documents Helpful

  • Good Essays

    Food Deserts: A Case Study

    • 1283 Words
    • 6 Pages

    This issue connects with the distribution in food products from minorities, it denotes the repercussions that low income households transmit onto their children’s health and dietary options. Food deserts are spreading like a disease into areas that have limited access to nutritious food. The distribution in food retailers play a significant role in the sale of food products, the majority of these food companies only seem to care is the revenue they bring to their company and not the damage they leave behind to their clients. The author Thomas W. Hertel, states the relationship of poverty and the determinants of food security mentions, “The absolute poverty measure used in international comparisons seeks to do this by factoring in the amount of income required to meet not only the minimal level of food consumption, but also other subsistence requirements.” The socioeconomic status and geographic location status of minorities is an important factor that determines the disadvantage of their dietary…

    • 1283 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Wrigley, E.A. "Corn and Crisis: Malthus on the High Price of Provisions." Population and Development Review 25.1 (1999): 121+. Questia. 5 June 2005 <http://www.questia.com/>.…

    • 1474 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Panagariya, A. (2005), Agricultural liberalisation and the least developed countries: Six fallacies. World Economy, 28: 1277–1299. doi: 10.1111/j.1467-9701.2005.00734.x…

    • 1792 Words
    • 6 Pages
    Better Essays
  • Better Essays

    Food insecurity is linked to various issues such as poverty, low income, poor infrastructure, inequitable access to land, water, credit and markets. Food security is also threatened due to natural disasters such as floods, droughts and further exacerbated by internal conflicts which can dislocate rural and farming communities. These issues and challenges are the normal and repetitive debates among the global community of practice regarding food security while the needs and necessities of the peasant farmers, who are responsible for the majority of food production around the globe, are not addressed. In The Food Wars, Walden Bello presents the important and burning issues of the North-South power gap and hierarchy regarding food security. Bello depicts and argues the role of the Bretton Woods institutions influencing agricultural policies in developing countries, organizations such as the WTO designing rules and regulations that exclude developing nations and their smallholder farmers, while donor organizations such as USAID heavily persuade developing nations to adopt unfriendly domestic policies. Most importantly, Bello closes the gap between the policies made by multilateral institutions, developing government ministries and their implication on the peasant farmer.…

    • 1238 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Furthermore a notably amount of goods is usually shipped to Third World nations in the form of "food aid”. This food aid is great for urban poor people, who get free or very cheap food. But it destroys agriculture in those Third World nations, since their farmers can`t compete with free or cheap food dumped into their economies by often well-meaning development professionals.…

    • 711 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    ———. 1998. “Seven Questions about the Chinese Famine of 1959–61.” China Econ. Rev. 9 (Fall): 111–24. Rosen, Sherwin. 1999. “Potato Paradoxes.” J.P.E. 107, no. 6, pt. 2 (December): S294–S313. Sen, Amartya K. 1981. Poverty and Famines: An Essay on Entitlement and Deprivation. Oxford: Clarendon. Stokey, Nancy L., Robert E. Lucas Jr., and Edward C. Prescott. 1989. Recursive Methods in Economic Dynamics. Cambridge, MA: Harvard Univ. Press. Strauss, John. 1986. “Does Better Nutrition Raise Farm Productivity?” J.P.E. 94 (April): 297–320. Strauss, John, and Duncan Thomas. 1995. “Human Resources: Empirical Modeling of Household and Family Decisions.” In Handbook of Development Economics, vol. 3A, edited by Jere R. Behrman and T. N. Srinivasan. Amsterdam: North-Holland. Wen, Guanzhong James. 1993. “Total Factor Productivity Change in China’s Farming Sector: 1952–1989.” Econ. Development and Cultural Change 42 (October): 1–41. Yang, Dali L. 1996. Calamity and Reform in China: State, Rural Society, and Institutional Change since the Great Leap Famine. Stanford, CA: Stanford Univ. Press. Yao, Shujie. 1999. “A Note on the Causal Factors of China’s Famine in 1959– 1961.” J.P.E. 107, no. 6, pt. 1 (December): 1365–69.…

    • 16094 Words
    • 65 Pages
    Powerful Essays
  • Powerful Essays

    Patnaik, Utsa (2004) The republic of hunger. Social Scientist, 32(9-10): 9-35. Patnaik, Utsa (2007) Neoliberalism and rural poverty in India. Economic and Political Weekly, July 28: 3132-50. Pinstrup-Andersen, Per, Norha-Ruis, de Londono and Edward, Hoover (1976) The impact of increasing food supply on human nutrition: Implications for commodity priorities in agricultural research and policy. American Journal of Agricultural Economics, 58(2): 131 142. Radhakrishna, R. (2005) Food and nutrition security of the poor: Emerging perspectives and policy issues. Economic and Political Weekly, 40(18): 1817-21. Radhakrishna, R., Hanumantha Rao, K., Ravi, C. and Sambi Reddy, B. (2004) Chronic poverty and malnutrition in 1990s. Economic and Political Weekly, 39(28): 3121-30. Rao, C.H. Hanumantha (2000) Declining demand for foodgrains in rural India: Causes and implications, Economic and Political Weekly, 35(4): 201-6. Rao, C.H. Hanumantha (2005) Agriculture, Food Security, Poverty and Environment: Essays on Post-Reform India, Oxford University Press, New Delhi. Ray, Ranjan and Lancaster, Geoffrey (2005) On setting the poverty line based on estimated nutrient prices: Condition of socially disadvantaged groups during the reform period, Economic and Political Weekly, 40(1): 46-56. Shinoj, P. and Mathur, V.C. (2006) Analysis of demand for major spices in India. Agricultural Economics Research Review, 19(2): 367-376. Stone, J.R.N. (1954) Linear expenditure system and demand analysis: An application to the pattern of British demand. Economic Journal, 64: 511 527. Swamy, Gurushri and Binswanger, Hans P. (1983) Flexible consumer demand systems and linear estimation: Food in India. American Journal of Agricultural Economics, 63(2): 237 246.…

    • 8435 Words
    • 34 Pages
    Powerful Essays
  • Good Essays

    Green Revolution

    • 1494 Words
    • 6 Pages

    When the British left India in 1947, India continued to be haunted by memories of the Bengal Famine. It was therefore natural that food security was one of the main items on free India's agenda. This awareness led, on one hand, to the Green Revolution in India and, on the other, legislative measures to ensure that businessmen would never again be able to hoard food for reasons of profit.…

    • 1494 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    This is to certify that the dissertation entitled “Food Security And Public Distribution System: A Case study on Bengaluru Slums”, submitted by Kavitha R (11ECO5305), in fulfillment of the requirements for the aware of master’s degree in Economics is an original work. I certify that this has not been submitted in part or in full to any university for the award of any Degree or Diploma.…

    • 9898 Words
    • 40 Pages
    Powerful Essays
  • Powerful Essays

    of practices are associated with growth in yield of crops. The adoption of hybrid seed technology…

    • 1546 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Recent Trends in World Trade

    • 3471 Words
    • 14 Pages

    Josling, T. 1998. Developed countries and the new round: policy trends and reform objectives in agriculture. Rome, FAO/IICA/WB.…

    • 3471 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    ↑ “A hungry world is a dangerous world. Without food, people have only three options – they riot, emigrate or die. None of these are acceptable”…

    • 2400 Words
    • 10 Pages
    Good Essays
  • Powerful Essays

    Pds System

    • 11478 Words
    • 46 Pages

    ―Pattern of Allocation & Off takes of Food grains Under Public Distribution System in Chhattisgarh with special reference to Raipur city‖…

    • 11478 Words
    • 46 Pages
    Powerful Essays
  • Best Essays

    Wto and Agriculture

    • 4854 Words
    • 20 Pages

    References: Aleandros, Nicos, 1993. Agriculture: Towards 2010, Rome: Food and Agriculture Organization of United Nations. Astha Ahuja. “Agricultural and Rural development in India PostLiberalization Intitiatives”, New Century Publications, New Delhi, India, pp.78-85. Bansil, P.C 1999. Demand for Food Grains by 2020 A.D, Observe Research Foundation, New Delhi. Deepika, M.G. and R.S.Deshpande, 2003. Trade Policy and Determinants of Trade in Agriculture. Working Paper No.18, Bangalore: Institute for Social and Economic Change. Deshpande R.S. 2003a. AOA: Inertia from Uruguay to Cancum via Doha, Monthly Economic Digest, Vol. 32(8). Gulti, Ashok and Anil Sharma, 1994. Agriculture under GATT: What it holds for India”, Economic and Political Weekly, Vol. 39, No, July 16, pp.1857-1863. Ruddar Dutt, Sundaram K.P.M, 1999. Indian Economy”, S.Chand and Company Ltd, New Delhi. Rao,C.H.Hanumantha, 1994. Agricultural Growth, Rural Poverty and Environmental Degradation in India. Oxford & IBH Publishing Co. Pvt. Ltd. New Delhi. Rao,C.H. Hanumanth and Ashok Gulti, 1994. Indian Agriculture: Emerging Perspective and Major Policy Issues, International Food Policy Research Institute (IFPRI), Washington, D.C., U.S.A. (mimeo). Vyas, V.S. 1994. Agricultural Price Policy: Need for Reformulation”, in G.S.Bhalla (Ed.) (1994), Economic Liberalization and Indian Agriculture, Institute for studies in Industrial Development, New Delhi. World Trade Organization, 1998. India Should Keep up with its Trade Reforms to Ensure Strong Economic Growth, Press Release, April.…

    • 4854 Words
    • 20 Pages
    Best Essays
  • Good Essays

    Food Security Bill

    • 6350 Words
    • 26 Pages

    Attainment of self-sufficiency in foodgrains production at the national level has been one of the major achievements of the country. In order to address the issue of food security at the household level, the Government is implementing Targeted Public Distribution System under which subsidized foodgrains is provided to the Below Poverty Line, including Antyodaya Anna Yojana, and above poverty line households. While the Below Poverty Line households under the Targeted Public Distribution System receive thirty-five kilograms foodgrains per family per month, the allocation to Above Poverty Line households depends upon availability of foodgrains in the Central pool. Ensuring food security of the people, however, continues to be a challenge. The nutritional status of the population, and especially of women and children, also needs to be improved to enhance the quality of human…

    • 6350 Words
    • 26 Pages
    Good Essays

Related Topics