Dreze vs Gulati

Updated: February 5, 2015 5:10:30 AM

After the FCI restructuring panel used data by Ashok Gulati-Shweta Saini to show leakages in ration shops had risen from 24%...

After the FCI restructuring panel used data by Ashok Gulati-Shweta Saini to show leakages in ration shops had risen from 24% in 1999-00 to 46.7% in 2011-12, a study by Jean Dreze-Reetika Khera argues there is a structural flaw in Gulati-Saini’s methodology in that the duo multiplied the cereal consumption data from NSS by the number of ration card holders instead of the number of households. That, Dreze-Khera point out, hides the huge improvement in the PDS system in states like Bihar and Chhattisgarh. But the point is that with the number of ration card holders and the number of households at the all-India level quite similar, the Gulati-Saini results of leakages still hold. And there are lots of other gains to be made from moving away from ration shops towards cash transfers.

FCI, PDS scheme, Chhattisgarh, Jean Dreze, Reetika Khera, Ashok Gulati, Shweta Saini

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