Agflation and the PDS - Some Issues

In the context of the current public policy focus on rising food prices and their implications for food security, this paper examines two major issues raised: (i) Universalization of the public distribution system; and (ii) its implications for procurement and buffer-stocks. This paper is based on the recent evidence on the profile of public distribution system, its targeted version in particular, households reliance on the public distribution system and the open market, and its policy implications. The paper concludes that the need of the hour is not universalisation of the PDS but a revision of the food security norm, a BPL-friendly PDS and its efficient functioning.