Public distribution system in Tamil Nadu: evaluation of its impact and examination of policy options

Abstract

The Public Distribution System in India is 50 years old. Though it was started as a rationing system during the War time scarcity situation, it has grown into being the biggest system of organised foodgrain distribution in the world today. At present it is being carried on as an anti-inflationary and antipoverty system. Tamil Nadu, the southernmost State in the country, is implementing the system covering its entire population and supplying regularly rice, wheat, sugar and kerosene. All these commodities are subsidized by the Central Government which organises their supply. Over and above this, the State Government is heavily subsidising the price of rice. The aim of the present study is to evaluate the impact of the system on the consumers of Tamil Nadu and examine the options to increase its effectiveness. Three major surveys were undertaken for the study. A State-wide survey on the perceptions of the consumers about the present system was conducted. It was found that in Tamil Nadu the Public Distribution System has no prourban or pro-rich bias as in the case of some other States; the spread of benefits of the System to the various areas and over different income groups was fairly uniform. The perceptions of different categories of consumers on the critical elements (which determine the effectiveness of the system) were very similar. The survey indicated that the consumers are satisfied about the main elements of the system like shop location, working hours, quota availability, quality acceptability, etc. The two areas of concern of the consumers were under weighment and non-availability of all the commodities at the same time. They wanted the present entitlement of all the commodities (more particularly rice) to be increased.