Part-II reports the impact of in-kind food
transfers on nutritional intake as measured by calories. Econometric
analysis using a simple calorie demand function confirms the
significance of variables relating to public distribution system access,
controlling for other covariates, in its contribution to calorie
intake. Results also suggest that the calorie-elasticity of PDS
transfers is twice as large
compared to additional out-of-pocket income
equal to the cash equivalent of PDS transfers. These are also confirmed
by non-parametric analysis of calorie intake of various consumer groups.
Although preliminary, these results suggest caution in advocating cash
transfers as substitute of in-kind transfers. Finally, the paper
evaluates concerns about the financial implications of the minimum
support price-PDS system in light of the recently enacted National Food
Security Act.
or
