This paper makes an attempt to examine the scope, character and effects of Modified Rationing (MR)—the archetype of rural rationing in Bangladesh. It probes a comprehensive range of issues in that context, including criteria defining eligibility to support under MR; foodgrain allocation modalities; comparative variability of the offtake under MR as distinct from Statutory Rationing, Other Priorities and Essential Priorities; residual character of MR; the incidence of MR with regard to foodgrain supplements entailed by it for beneficiary households; relatives scope of MR within urban as opposed to rural areas; and the leakage in MR. It is inronic that, while MR is the only monetised channel within Bangladesh’s public foodgrain distribution system having the rural poor as its de jure constituency, this has taken the deepest cutback in its scale of operation, has had the greatest volatility in offtake, has evinced a conspicuous degree of urban bias. Using sample survey results, it is shown that MR must be judged to be a very minor player in determining foodgrain intake of even poor rural households. Leakage from MR stream at the level of MR dealers is estimated at about half of what ought to have been distributed among poor beneficiary housholds.