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10) Leakages seriously undermine the effectiveness of product subsidies and recently the Prime Minister stated that leakages in subsidies must be eliminated without reducing the subsidies themselves. Analyse why leakage is a serious issue in public distribution system in India.

TopicIssues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System- objectives, functioning, limitations, revamping; issues of buffer stocks and food security; 

10) Leakages seriously undermine the effectiveness of product subsidies and recently the Prime Minister stated that leakages in subsidies must be eliminated without reducing the subsidies themselves.  Analyse why leakage is a serious issue in public distribution system in India. (200 Words)

Economic Survey – 2014-15, Volume – 1: Chapter – 3