Effects of Food Price Inflation on Cost and Affordability of Nutritious Diets in Sri Lanka: The Role of Cash Transfers

Abstract

Ensuring economic access to nutritious diets is crucial during times of economic crises. This study assesses the cost and affordability of diets and the impact of short-term nutrition-sensitive cash transfers on affordability. Secondary data on weekly retail prices of 86 food commodities from 25 districts in 2022 were collected from the Hector Kobbekaduwa Agrarian Research and Training Institute. The minimum cost of a nutritious diet, its affordability, and targeted interventions were simulated using Cost of Diet software. Affordability estimates were derived from the Household Income and Expenditure Survey of 2019 inflated to 2022. The average daily cost per household for an energy-only diet is LKR 468.00, while a nutritious diet is LKR 1,707.00. Household non-affordability for a nutritious diet was 47%, with the highest (73%) being reported in the Moneragala district. The targeted intervention of cash transfers of LKR 5000.00 to LKR 15,000.00 per month per household has improved nutrition inclusion and improved affordability by 6%-24%. Short-term nutrition-sensitive social protection programs for the most vulnerable prove to be an effective policy tool for ensuring economic access to nutritious diets.