Cash transfers versus food subsidies during COVID-19: dietary practices of rural women in Bihar, India

Abstract

This study examines the coverage and effect of cash transfers and food subsidies in India during the COVID-19 pandemic. It is based on a primary survey of rural women in the state of Bihar–an underdeveloped state with poor public delivery systems–undertaken in January–March and September–November 2020. Although the coverage of cash transfers was wider than that of food subsidies, respondents receiving cereals and pulses under the Public Distribution System reported a lower probability of suffering from food insecurity vis-à-vis cash subsidies. The study suggests that food subsidies may be more effective when supply chains break down.