India’s large grain stockpiles, yet 21% undernourished

An article in the New York Times (June 8, 2012), describes the 71 million tons of grain stockpiles in India, the world’s second largest invenory. But distribution to its poor citizens through ration shops is inefficient and corrupt, leaving 21% of the population undernourished. Given the inefficient distribution, should the poor be given money to shop, rather than physical product ? How should the system ensure that the poor are provided grain – will more spending to distribute product improve efficiency ? Is the government’s price support the culprit that distorts the market and makes grain non affordable ?

About aviyer2010

Professor
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