Does computerisation reduce PDS leakage? Lessons from Karnataka

Silvia Masiero discusses recent research into how computerisation can detect and prevent leakage from the Public Distribution System, which is used to dispense rations allocated under the National Food Security Act. She writes that although the system has helped to disincentivise cheating among ration dealers, problems remain. Firstly, technology prevents erroneous inclusion, but can do little towards the exclusion of the needful. Secondly, it monitors ration dealers’ behaviour but it cannot remove the incentive to divert rations in a scenario of non-profitability.