In this paper, develop a simple model that shows that consumption of PDS food grains is significantly different between rich and poor households in states where the PDS functions relatively well; in places where the PDS is non-functional, the difference is not significant.

For the rural poor – who depend above all the land for their survival – a central development challenge is to sustain a base of natural capital that can support a robust local economy. In India, government mismanagement of forests, grazing lands, and water resources has often alienated rural people and exacerbated resource degradation.