Feeding A Nation: State Procurement Efficiency and India’s Food Security

Ombir Singh; Anmol Kumar; Rahul

doi:10.30858/zer/216954

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Feeding A Nation: State Procurement Efficiency and India’s Food Security

Zagadnienia Ekonomiki Rolnej

Volume 387 (2026): Issue 2 (June 2026)

By: Ombir Singh , Anmol Kumar and Rahul

Open Access

|Jun 2026

Abstract

Background

This study examines how state-level procurement performance shapes India’s food security outcomes by assessing the linkage between procurement efficiency, minimum support prices (MSPs), and Public Distribution System (PDS) offtake across major grain-producing states.

Material and methods

Using a panel dataset spanning 2005–2023 for rice and wheat across Punjab, Haryana, and Uttar Pradesh, random- and fixed-effects panel regressions were estimated alongside diagnostic tests for heteroskedasticity, serial correlation, and multicollinearity. Procurement efficiency was quantified through the Procurement Efficiency Ratio (PER), Contribution Ratio (CR), and Gini coefficient to track inequality and concentration trends.

Results

Punjab and Haryana demonstrate strong MSP responsiveness, high efficiency, and disproportionately large contributions to national grain stocks. In contrast, Uttar Pradesh under-contributes despite its production dominance, reflecting institutional bottlenecks. The Gini coefficient increased from 0.48 to 0.63, indicating rising concentration and systemic risk. Panel regression results also show that procurement significantly drives national PDS distribution, with lagged effects.

Conclusions

Institutional capacity not production alone determines effective procurement. Strengthening procurement systems in lagging states, diversifying sourcing regions, and embedding efficiency monitoring mechanisms are critical for enhancing equity and resilience in India’s food security architecture.

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Articles in this issue

DOI: https://doi.org/10.30858/zer/216954 | Journal eISSN: 2392-3458 | Journal ISSN: 0044-1600

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Language: English

Page range: 88 - 111

Submitted on: Nov 5, 2025

Accepted on: Jan 13, 2026

Published on: Jun 30, 2026

Published by: The Institute of Agricultural and Food Economics – National Research Institute

In partnership with: Paradigm Publishing Services

Publication frequency: 4 issues per year

Keywords:

production,

regional disparities,

public distribution system,

minimum support price,

food security

Related subjects:

Business and economics,

Agribusiness, food industry

© 2026 Ombir Singh, Anmol Kumar, Rahul, published by The Institute of Agricultural and Food Economics – National Research Institute
This work is licensed under the Creative Commons Attribution 4.0 License.

Volume 387 (2026): Issue 2 (June 2026)