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Benefit-cost analysis of iron fortification of rice in India: modelling potential economic gains from improving haemoglobin and averting anaemia

Author

Listed:
  • Qureshy, Lubina
  • Alderman, Harold
  • Manchanda, Navneet

Abstract

This paper presents an ex-ante Benefit-Cost analysis of proposed fortification of extruder rice with iron under the social safety net in India. The benefits of iron fortification are estimated in terms of economic gains from increases in current work productivity among adults and future productivity from improvements in learning among school-going children. The base case scenario indicates a benefit cost ratio of 8.2, with 69 percent coming from improved learning in school and the remainder through enhanced work productivity. Benefit-cost ratios are also presented for a range of alternative assumptions, all of these resulting in ratios greater than 1. Nevertheless, despite decades of fortification at scale, a principal conclusion of this study is that future benefit cost models would gain confidence if more evidence is generated on the relationship of improved biomarkers for iron and changes in measures of cognition and labour productivity.

Suggested Citation

  • Qureshy, Lubina & Alderman, Harold & Manchanda, Navneet, 2023. "Benefit-cost analysis of iron fortification of rice in India: modelling potential economic gains from improving haemoglobin and averting anaemia," MPRA Paper 116281, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:116281
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    References listed on IDEAS

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    1. Marion Kramer & Santosh Kumar & Sebastian Vollmer, 2021. "Improving Child Health and Cognition: Evidence from a School-Based Nutrition Intervention in India," The Review of Economics and Statistics, MIT Press, vol. 103(5), pages 818-834, December.
    2. Bundy, Donald AP & de Silva, Nilanthi & Horton, Susan & Patton, George C & Schultz, Linda & Jamison, Dean T & Group, Disease Control Priorities-3 Child and Adolescent Health and Development Authors & , 2018. "Investment in child and adolescent health and development: key messages from Disease Control Priorities, 3rd Edition," Department of Economics, Working Paper Series qt22d8g11r, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    3. Banerjee, Abhijit & Barnhardt, Sharon & Duflo, Esther, 2018. "Can iron-fortified salt control anemia? Evidence from two experiments in rural Bihar," Journal of Development Economics, Elsevier, vol. 133(C), pages 127-146.
    4. Horton, Sue & Wesley, Annie & Venkatesh Mannar, M.G., 2011. "Double-fortified salt reduces anemia, benefit:cost ratio is modestly favorable," Food Policy, Elsevier, vol. 36(5), pages 581-587, October.
    5. Alberto Chong & Isabelle Cohen & Erica Field & Eduardo Nakasone & Maximo Torero, 2016. "Iron Deficiency and Schooling Attainment in Peru," American Economic Journal: Applied Economics, American Economic Association, vol. 8(4), pages 222-255, October.
    6. Alberto Alesina & Paola Giuliano & Nathan Nunn, 2013. "On the Origins of Gender Roles: Women and the Plough," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(2), pages 469-530.
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    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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