A joint study by researchers from the University of California, Santa Barbara, the Indian Institute of Management, and the University of Calgary has revealed significant insights into the impact of India’s Public Distribution System (PDS)—the world’s largest food assistance program.
Their research, published in the American Economic Journal, highlights that the benefits of the PDS extend well beyond just providing calories; it offers substantial health and economic improvements as well.
Significant Improvements in Nutrition
Kathy Baylis, one of the key contributors to the study, pointed out that malnutrition remains a critical issue in India.
Alarmingly, child stunting rates there are comparable to those in some of the poorest regions of sub-Saharan Africa, despite India’s greater overall wealth.
Serving around 800 million people, the PDS accounted for 60% of India’s social assistance budget during the 2019-2020 fiscal year and operates in a manner similar to traditional food stamp programs in the United States.
In 2013, the Indian government set minimum standards for the PDS, prompting various states to bolster their support systems.
The researchers evaluated states that complied with these federal standards against those requiring enhancements, with a comprehensive survey focusing on metrics such as children’s height-for-age ratios to assess malnutrition rates.
Impact of Expanding the PDS
The research revealed that expanding the PDS successfully decreased the prevalence of stunting from 36% to 28.8%, particularly benefiting children aged zero to two years.
Interestingly, the program’s effectiveness appeared heightened during unfavorable rainfall periods, underscoring the vital role nutrition-sensitive initiatives play in ensuring food security and improving child nutrition amid environmental challenges.
Despite concerns from some critics that subsidized grains might reduce the intake of healthier foods, survey results showed the opposite—participants reported a more diverse diet, allowing them to invest in more nutritious options.
The observed increase in children’s height correlated with a better-balanced diet, which included greater consumption of animal proteins.
Broader Economic Benefits
Moreover, the research uncovered a positive influence on household spending that went beyond mere savings from food subsidies.
According to the authors, better-nourished individuals tend to work longer hours or seek higher-paying job opportunities, a trend particularly noticeable among those earning hourly wages.
This study emphasizes that food transfers offer benefits that transcend the immediate value of food items.
As policymakers explore various strategies, including cash transfer programs, these findings suggest that subsidized food can effectively direct spending toward food-related needs while helping stabilize market prices.
In essence, the results from this research illustrate that the advantages of the PDS reach far beyond providing mere calories.
The implications are extensive, impacting income, health, and the overall development of human capital in India.
Source: ScienceDaily