Background: Despite several interventions, India has made little progress in reducing hidden hunger, micronutrient malnutrition. Food fortification of staple foods could be useful in addressing the above problem. Nonetheless, it may lead to an increase in economic stress among people by increasing inflation and monthly budget expenditure. Objective: The prime objective was to see whether or not mandatory food fortification will lead to an increase in inflation and the family’s budget expenditure. Methods: The study was based on secondary data. Decomposition approach has been used—inflation was decomposed into contributions of each commodity and which was further divided into base, weight, and inflation effects. To estimate the impact of mandatory food fortification on the family’s budget expenditure, monthly per capita expenditure has been assessed by considering both the situations—with and without fortification. Results: Results suggest that mandatory food fortification has a very negligible effect on inflation, suggesting no rise in inflation due to mandatory food fortification in India. Also, the study suggests a minimal increase in monthly per capita expenditure in both rural and urban sectors of India. Conclusions: Though adopting mandatory food fortification in India will not have an impact on inflation, there would be 2 major challenges: high dependency on food items processed locally and unawareness of benefits of fortified food items. Therefore, the government can first start food fortification of staple food with safety nets programs like NFSA, focusing on the most vulnerable groups of the society, and then scale up at a large scale.
The NBN is broken. Here’s the fix.
