An Empirical Analysis on Food Subsidy in India

Abstract

The Public Distribution system is India’s largest poverty alleviation programme and it is mainly depends with the subsidy given by the government of India. The subsidy is provided to Food Corporation of India, which is the main instrument of the Government of India for procurement and distribution of wheat and rice under Targeted Public Distribution System and other welfare schemes and for maintaining the buffer stock of food grains as a measure of  food security. This paper makes critical review on the flow of food subsidy given by the Government of India to the Food Corporation of India and how strengthens the poverty alleviation programme by using Government subsidy.