Government transfers, COVID-19 shock, and food insecurity: Evidence from rural households in India

Anjani Kumar; Ashok K Mishra; Sunil Saroj; Shahidur Rashid

doi:10.1002/agr.21746

Government transfers, COVID-19 shock, and food insecurity: Evidence from rural households in India

Agribusiness (N Y N Y). 2022 Summer;38(3):636-659. doi: 10.1002/agr.21746. Epub 2022 May 14.

Authors

Anjani Kumar¹, Ashok K Mishra², Sunil Saroj¹, Shahidur Rashid¹

Affiliations

¹ International Food Policy Research Institute, South Asia Office New Delhi India.
² Kemper and Ethel Marley Foundation Chair, Morrison School of Agribusiness, W.P. Carey School of Business Arizona State University Mesa Arizona USA.

Abstract

The coronavirus disease 2019 (COVID-19) pandemic has decimated the lives and livelihoods of people worldwide. The impact of COVID-19 has been especially devastating for low-income families in rural areas of India. Soon after the nationwide lockdown was announced, food insecurity became pervasive in rural areas, as many families relied on daily wage work to fund necessities. By providing cash transfers and additional foodgrains, Indian policymakers acted swiftly to reduce the financial impact on family income and consumption. This paper investigates the factors affecting rural families' participation in the cash transfer program and the effect of government cash transfers on food insecurity. Results indicate that India's government cash transfer program decreased moderate food insecurity by 2.4% and severe food insecurity by about 0.92% [EconLit Citations: O12, I31, I32, I38].

Keywords: COVID‐19; Food Insecurity Experience Scale; Lewbel IV; Pradhan Mantri Garib Kalyan Yojana; Rasch Model.