Understanding Leakages in the PDS

PDS leakages remain unacceptably high. However, there is strong evidence of declining leakages in recent years.
There is strong evidence of declining leakages in recent years
In this note, we present updated estimates of PDS leakages using the latest data available — not only from the NSS but also from the IHDS surveys and related sources. For the first time, a relatively clear picture emerges. The decline is particularly clear in states that are known to have undertaken serious PDS reforms, confirming the effectiveness of these reforms
The decline is particularly clear in states that are known to have undertaken serious PDS reforms, confirming the effectiveness of these reforms
First, PDS leakages remain unacceptably high — about 30% according to the lowest estimate for 2011–12. Second, there is strong evidence of declining leakages in recent years. Third, the decline is particularly clear in states that are known to have undertaken serious PDS reforms, confirming the effectiveness of these reforms. Fourth, Bihar’s recent experience suggests that even the worst governed states are capable of improving their PDS. Fifth, the biggest source of continuing leakages is the APL quota (and probably also “ad hoc quotas”). The implementation of the National Food Security Act is an important opportunity to phase out this leaky quota and complete the process of PDS reform across the country.
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