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Table 4: Changes in the State Ration, 1991 - 1996

August 1991

May 1996

Quantity per person

Market price

Quantity per person

Market price

Wheat flour (kg)

8

2.4

7

240

Rice (kg)

1.5

4.1

1.25

350

Cooking oil (ltr)

0.25

10.3

0.75

580

Tea (kg)

0.05

23.7

0.1

1,270

Sugar (kg)

1.5

4.4

0.5

670

Soap (pieces)

-

1.5

90

Washing powder (kg)

-

0.2

100

Baby milk (kg)

1.8

22.2

1

3,200

Costings for family of six persons with one infant

Nominal price of full ration

11.1

600

Cost at market prices

212

19,048

Implied subsidy

201

18,448

Implied subsidy in kilogrammes of wheat flour equivalent

83

77

Sources: For 1991, Drèze and Gazdar (1991), for 1996, authors' survey