Incentivising fruits and vegetables consumption in rural India

Incentivising fruits and vegetables consumption in rural India

Year: December 2018

Collaborator: London School of Hygiene and Tropical Medicine

Team: Sarang Deo, Arindam Debaramma, Shilpa Aggarwal

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Background

Inadequate intake of fruits and vegetables is a leading cause of malnutrition. However, the intake of fruits and vegetables remains low in India, where 75% of the population fails to meet the WHO recommended daily consumption targets, especially in rural areas. Food prices and affordability is a major deterrent, and it has been observed that discounts can be helpful in the situation.

About the Study 

Even though financial incentives are known to have a positive impact on the intake of fruits and vegetables, data on their feasibility and effectiveness in rural India remains scarce. Therefore, the study aims to evaluate the impact of financial incentives like cashbacks on the purchasing decision of the population, thereby gauging its effectiveness in improving dietary intake.

Methodology

A three-month long cluster- randomized controlled trial of a financial incentives scheme involving 20% cashback on the purchase of fruits and vegetables from local retailers was conducted in six villages (3535 households) in Telangana, India from February to April 2021. Financial incentives were offered to all households in three intervention villages while no such scheme was offered to the control villages. Self-reported (pre-intervention and post-intervention) data on purchase of fruits and vegetables were collected from a random subsample of households in control and intervention villages.

Outcome

The weekly quantity of purchase in intervention households was reported to be significantly higher than the control households, especially from the local participating vendors. Thus, a high level of engagement to financial incentives schemes was noted. It can therefore be inferred that financial incentives schemes are feasible in unorganised food environments, but their effectiveness will also depend upon the willingness of local retailers to participate in the scheme. The difference observed within various socio-economic and food security groups was negligible, thus proving that such intervention does not exacerbate social disparity or have other unintended adverse impacts.