My research examines the distribution of subsidized foods to poor, urban households in Punjab, India under the Targeted Public Distribution System (TPDS). I seek to understand how an episode of increased competition among government-licensed shops may have affected distribution quality and health outcomes for the TPDS’ intended recipients. I hypothesize that this episode of increased competition strengthened these public service providers' incentives to reduce black-marketing of goods and instead provide better service to the poor.