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Food subsidies at the base-of-the-pyramid: take-up, substitution effects and nutrition
Alp Sungu, Ali Aouad, Kmalini Ramadas
London Business School
We analyze food purchasing patterns among low-income individuals in India using scanner data. Heavy consumption of packaged junk food is observed. A subsidy program is implemented, resulting in decreased snack purchases and increased purchases of complementary foods. Working parents show the strongest effects. No negative impact on nutrient purchases is found. Customized subsidy programs show a tradeoff between nutrient richness and customer appeal.