The economics of reducing food losses: Experimental evidence from improved storage technology in India

Abstract

Understanding the economics of food loss-reduction technologies is crucial to promote their adoption. We offer experimental evidence on returns to technology that studies a wide range of food security outcomes and accounts for the quality, quantity, and economic gains from adoption. Using two randomized experiments on improved storage with farmers in India, we find that food loss-reduction technology delivers large gains on multiple aspects of food security. The largest benefits of loss-reduction technology come from reduced quality and economic losses. Using a novel within-farmer experiment, we offer evidence of significant economic incentives for investing in loss-reduction technology in local rural markets. Our cost-benefit analysis shows that farmers recover the full unsubsidized cost of the reusable improved storage technology in one agricultural season.