India's PDS can act as a game-changer in the fight against hunger: Study
Despite significant advances in science and technology, hunger remains a major global problem. According to the United Nations, 2.33 billion people will face moderate or severe food insecurity by 2023. In this backdrop, a recent study conducted by academics from California University (UC) Santa Barbara, the Indian Institute of Management, and the University of Calgary shed light on the extensive health and economic benefits of India's Public Distribution System (PDS), the world's largest food aid programme.
"Malnutrition in India has been this long-standing problem," said co-author Kathy Baylis, a professor in UCSB's Geography Department and the Environmental Markets Lab (emLab). "Stunting rates for children in India are the same as they are in some of the poorest countries in sub-Saharan Africa, even though it is a lot wealthier." This stark fact highlights the crucial relevance of India's PDS, which serves 800 million people and accounts for 60% of India's social assistance budget from 2019 to 2020.
The PDS works similarly to the United States' food stamp system, allowing qualified families and individuals to buy bags of rice or wheat at significantly subsidised prices. In 2013, India's federal government established minimum guidelines for the programme, causing many states to step up their support by offering greater grain portions or lower costs.
To measure the impact of these adjustments, researchers compared states that already met federal standards to those that needed to adjust. They used data from the International Crops Research Institute for the Semi-Arid Tropics, which performed a five-year survey of families in the programme across 30 communities in eight states with funding from the Gates Foundation.
The study examined children's height for age as an indicator of malnutrition, a statistic that captures longer-term patterns than body mass index. "The reason we care about stunting, this height for age, is that it's associated with all sorts of bad long-run outcomes, including worse health outcomes and cognitive challenges, which affect education and income," Baylis told me.
The findings were remarkable. The average PDS expansion decreased stunting prevalence from 36% to 28.8%. "We were surprised by the magnitude," Baylis remarked. The benefits were especially noticeable in children aged 0 to 2 years, a vital period for development. The programme had a particularly strong impact during periods of low rainfall, implying that PDS promotes food security and makes childhood nutrition less vulnerable to local climate shocks.
Critics contend that subsidised grains may replace more nutritious foods with empty calories. However, the survey found that individuals' diets were more diverse, with a higher consumption of animal proteins such as meat and milk. This shows that subsidising staples freed up funds for more nutritious foods, which contributed to the rise in children's height.
The study also found that cost reductions alone could not explain the greater impact on household spending. Well-fed people could work longer hours, increasing their earnings, and the added security allowed people to be more picky about their jobs. This tendency was noticeable among hourly workers but not paid personnel. "The secondary effect on income meant that this programme was more meaningful than just the value of the food itself," Baylis told me.
These findings emphasise the broader benefits of food transfers, which go beyond calorie consumption. "Social safety nets can have these big knock-on effects in terms of things like income, health, and human capital," Baylis told reporters. "Even a small safety net can benefit more people than initially thought."
While politicians and economists debate various techniques, such as direct cash transfers, this study emphasises the value of food aid programmes. While monetary transfers might raise food prices, especially for nutrient-dense foods, subsidised food can lower them. Furthermore, food programmes maintain users' attention on food, ensuring that savings are reinvested in nutrition.
Finally, the study conducted by UC Santa Barbara, the Indian Institute of Management, and the University of Calgary demonstrates that India's PDS not only combats malnutrition but also improves economic stability. The programme's advantages go far beyond its immediate impact, demonstrating how social safety nets can transform lives and communities.