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Household Responses to Food Subsidies: Evidence from India

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  • Tara Kaul

Abstract

The Indian Public Distribution System is one of the world's largest food security programs and provides a monthly quota of cereals at discounted prices to poor households. I study the effect of the program on nutritional outcomes by exploiting variations in value of the subsidy resulting from differences in state program rules and local market prices. Using household consumption data, I find a small but positive impact on calories from all food groups, not just cereals. The impact on caloric intake is substantially smaller in states where corruption is high.

Suggested Citation

  • Tara Kaul, 2018. "Household Responses to Food Subsidies: Evidence from India," Economic Development and Cultural Change, University of Chicago Press, vol. 67(1), pages 95-129.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/697553
    DOI: 10.1086/697553
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    Cited by:

    1. Vandita Dar & Madhvi Sethi & Saina Baby, 2023. "Direct Cash Transfers in Emerging Economies: The Case of India," Business Perspectives and Research, , vol. 11(2), pages 287-308, May.
    2. Anugu Amarender Reddy & Anindita Sarkar & Yumiko Onishi, 2022. "Assessing the Outreach of Targeted Development Programmes—A Case Study from a South Indian Village," Land, MDPI, vol. 11(7), pages 1-22, July.
    3. Jyotirmayee Satapathy & Narayan Chandra Nayak & Jitendra Mahakud, 2022. "Do various dimensions of food security affect household welfare differently? An empirical investigation of India's national food security act," Letters in Spatial and Resource Sciences, Springer, vol. 15(3), pages 555-586, December.
    4. Digvijay S. Negi, 2022. "Global food price surge, in-kind transfers, and household welfare evidence from India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2022-006, Indira Gandhi Institute of Development Research, Mumbai, India.
    5. Muhammad Tariq & Aneesa & Farah Khan, 2019. "The Effects of Social Protection Program on Food Consumption and Poverty in Khyber Pakhtunkhwa, Pakistan," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 11(1), pages 55-82, March.
    6. Sudha Narayanan & Karthikeya Naraparaju & Nicolas Gerber, 2019. "Synergies in social protection : Impacts of India's MGNREGA and public distribution system on the health and nutrition of women and children," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2019-041, Indira Gandhi Institute of Development Research, Mumbai, India.
    7. Negi, Digvijay S., 2022. "Global food price surge, in-kind transfers and household welfare: Evidence from India," World Development, Elsevier, vol. 158(C).
    8. Jaya Jumrani & J. V. Meenakshi, 2023. "How effective is a fat subsidy? Evidence from edible oil consumption in India," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 327-348, June.
    9. Phadera,Lokendra & Sharma,Dhiraj & Wai-Poi,Matthew Grant, 2020. "Iraq's Universal Public Distribution System : Utilization and Impacts During Displacement," Policy Research Working Paper Series 9155, The World Bank.
    10. Umanath Malaiarasan & R. Paramasivam & K. Thomas Felix, 2021. "Does Food Price Subsidy Affect Dietary Diversity? Evidence from South India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 15(2), pages 268-290, May.

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