This case study discusses a unique experiment of distributing food subsidy in the Nagri block of Ranchi district, Jharkhand, India. The Jharkhand government experimented with an innovative delivery model in the hope to reduce leakages in the public distribution system (PDS). The model derived its design from PAHAL-mode of LPG subsidy distribution. MSC conducted a comprehensive evaluation study and found that at both the institutional and ecosystem levels, a lack of sufficient infrastructure precluded successful implementation leading to premature closure of the scheme.
The primary reason behind the rejection of the new model was that the Nagri pilot created significant operational challenges—both for beneficiaries and for fair price shop (FPS) dealers. This case study discusses the learnings and insights from the Nagri pilot that the governments can use to inform future experimentation in food subsidy delivery.