Public Distribution System Reforms and Consumption in Chhattisgarh : A Comparative Empirical Analysis

Chhattisgarh's Public Delivery System (PDS) reforms have been lauded as a model for the National Food Security Act and for other states to emulate. Previous research has shown that PDS rice consumption increased in Chhattisgarh following reforms by the Raman Singh government that began in 2004. However, one third of PDS rice consumption growth in Chhattisgarh from 1999/2000 to 2009/2010 took place before 2004. This magnitude is over 70 percent when growth is measured relative to comparison regions that undertook no reforms. This finding suggests that the pre-2004 reforms to Fair Price Shop (FPS) ownership and state procurement by the Ajit Jogi government contributed to PDS consumption growth. After 2004, PDS rice consumption growth in Chhattisgarh was similar to comparison regions that undertook no major PDS reforms. At most, one third of PDS consumption growth in Chhattisgarh after 2004 can be attributed to the Raman Singh government's reforms. Illustrating the difficulties of a policy transition, PDS rice consumption temporarily fell by about one third immediately after Chhattisgarh discontinued private FPS licenses in 2004. Our findings suggest that sustained reforms, when coupled with political and social will, can improve PDS access. They also imply that improvements may not be substantial or sustained in the absence of these factors