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Explained: Thalinomics - The Economics of a Plate of Food in India

By Abhivyakti Mishra

A country that stands second in the population number graph but has the 94th rank out of 107 nations in the hunger index is worrying. With an increase in household food wastage and also an increase in death related to the shortage of food, one needs to track the availability of the same. This article explores Thalinomics, a method to quantify what an ordinary person pays for a food plate in India, and how the dynamics have changed pre and post the Pandemic of 2020. 

 

A country with a population of over a billion must have a lot of mouths to feed. But do all of these mouths get a chance to taste the flavours of food? India was ranked 94th out of 107 nations in the Global Hunger Index 2020, with a score of 27.2, placing it in the ‘Serious Hunger’ category. According to a World Economic Forum report, 220 million Indians live on less than Rs 32 a day, which is the poverty line for rural India. When one looks at such statistics, one can easily conclude that India has such a disparity in feeding its people because of low economic standards. Conversely, in India, annual household food waste is estimated to be 50 kg per capita or 68,760,163 tonnes. This supports the statement that it is the mismanagement of food distribution, not the economic standards, resulting in many hungry stomachs across the country. 

 

In view of this, a method to quantify what an ordinary person pays for a plate of food in India has been developed. It is called “Thalinomics: Economics of a plate food in India”, the cost of a vegetarian and non-vegetarian supper is calculated for 25 States/UTs, taking into consideration the cost of cereals, vegetables, pulses, and fuel. It was introduced for the first time in the Economic Survey of 2019 to 2020. 

 

After analysing the data, the survey discovered that the dynamics of ‘thali' prices had changed during 2015-16. It claims that thali prices have shifted as a result of actions implemented a year ago to boost agricultural productivity and the efficiency and efficacy of agricultural markets for more accurate and transparent price discovery.

 

In addition, after 2015-16, the average household benefited an average of $10,887 per year from price reductions in vegetarian thali. Using the annual average wage of an industrial worker, the poll found that the vegetarian thali became more affordable by 29% from 2006-07 to 2019-20, while the non-vegetarian thali became more affordable by 8%. from 18%.

 

According to the poll, a worker who spent 70% of their daily wages on two vegetarian thalis each day for a family of five in 2006-07 would only have to spend 50% of their income in 2019-20. This year, Jharkhand had the most affordable supper, with two vegetarian thalis for a family of five costing roughly 25% of a worker's daily wage.

 

During the pandemic, thali costs varied significantly between states. On the other hand, the Economic Survey stated that the CPI-C is projected to lower thali prices in the future. 

Thalinomics

According to the Economic Survey 2020-21, overall, due to the continuation of supply-side interruptions, headline CPI inflation remained high during the COVID-19 caused lockdown period and thereafter. Food inflation grew to 9.1% in 2020-21, accounting for most of the increase in inflation (Apr-Dec). A general rise in price momentum has been observed as a result of COVID-19-induced disruptions, boosting inflation since April 2020, while a positive base impact has acted as a moderating element. 

The disparity in CPI inflation between rural and urban areas, which was prominent in 2019, began to reduce in November 2019 and persisted into 2020. In 2020-21 (June-December), inflation in States/UTs varied from 3.2 per cent to 11 per cent, compared to (-) 0.3 per cent to 7.6 per cent the previous year. Thali costs for both vegetarian and non-vegetarian Thalis fell dramatically in January-March 2020 but rose sharply in rural and urban areas from April to November before dropping in December 2020. Thali prices are projected to fall in the future as the CPI-C eases.

Food is not just a means to an end but also a vital component in the development of human capital and, as a result, in the creation of national wealth. As a Sustainable Development Goal, nations around the world have agreed on ‘Zero Hunger’. 135 million people are severely malnourished, according to the World Food Programme, as a result of man-made conflicts, climate change, and economic downturns (United Nations Sustainable Development, 2021). By the end of 2020, the COVID-19 pandemic might have doubled that figure, putting an extra 130 million people at risk of starvation. Measuring the affordability of a thali might help record how people in the nation can afford food, which in turn might help in managing malnutrition. 

Abivyakti Mishra.jpg

Abhivyakti Mishra

Daulat Ram College, Delhi University

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