Agriculture Reference
In-Depth Information
4. The government did incur the displeasure of farmers and pressure by farm lobby states
and threats of procurement boycott led to substantial hikes in procurement prices in the
2008 season.
5. As might be expected, the aggregate picture masks the variation across states. In general,
the southern states have a better record in delivering food subsidies.
6. The local-level politics that accommodate and encourage rent seeking in the PDS is
described by Mooij (1999, 2001).
7. Their formal involvement was restricted to the first draft.
8. This is not to say that identification by local bodies will always fail. Indeed, it could well be
the preferred option in a set of none too promising alternatives.
9. That is, if the subsidy was discontinued, per capita grain consumption will not drop below
2 kg per month.
10. Paper stamps have now been replaced by debit cards.
11. Of course, the shortfall this month can be added to the amount sent to the consumer next
month. In addition, the market prices can go down as frequently as they go up, so over a
long time it can be a wash.
12. This includes the farm surplus states as well as the oversized government agencies in
charge of procurement.
13. Kotwal, Murugkar, and Ramaswami (2011) cast a critical eye on whether local communi-
ties can discipline the PDS.
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