Scandizzo, P.L. and Swamy, G.
(1982)
Benefits and costs of food distribution policies: the India case.
Other.
The International Bank for Reconstruction and Development/The World Bank, Washington, D.C., U.S.A..
Abstract
The paper analyzes some of the characteristics and the main consequences of the food distribution policies followed by the Indian Government and provides a quantification and a cost benefit analysis of their effects on: (i) consumers (ii) producers, and (iii) the government budget. Despite the high leakages of the benefits to unintended beneficiaries and high procurement and distribution costs, the analysis shows that even a moderate concern with the nutritional status of the poor makes the schemes a worthy economic and social endeavour. However, there appears to be little scope for expanding the distribution system beyond its present size unless substantial gains can be made either by extending it to the rural areas or by cutting its costs. The analysis also shows that the bulk of the benefits derives from a ban on grain exports and is thus the consequence of the moderate surplus that the country would run at FOB prices. Procurement and rationing policies are consistent with the government trade policy, even though they show much less favourable benefit-cost ratios
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