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

Abstract

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.