Abstract

A study was conducted in western region of Tamil Nadu to analyse the effect of food subsidy on household food consumption. For the study 120 urban and 120 rural households were selected and post stratified as low income group, middle income group and high income group. The average value of consumption expenditure on food subsidy schemes public distribution system (PDS) and Noon Meal Scheme were analysed. The results show that the urban low income group enjoys a subsidy of Rs.319.18 per mooth as against Rs.41.12 by urban high income group. The subsidy value of food purchased through NMS in rural and urban low income group was Rs.330.99 and Rs.319.17, respectively. The rural low income group meet 43.33 per cent of their average cousumption from NMS and the urban low income group 38.45 per cent.

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