ABSTRACT
This chapter examines analytical issues that would identify the pathways of the effects of rising food prices and the financial crisis on households, particularly women and children. The food crisis not only increased general inflation but also affected macroeconomic policies. The countries hardest hit by the food crisis already have the highest malnutrition rates. Rising food prices would affect the social protection programmes, particularly the food-based schemes. The food price rise would affect the food consumption of households which in turn reduces consumption among women and children. The vulnerabilities across states in India can be examined by looking at the hunger index of the International Food Policy Research Institute. Comprehensive social protection programmes are required to address the negative effects due to food price crisis and financial crisis. Increase in food prices erodes the purchasing power of the poor. The incomes of the poor will fall and those who are just above the poverty line are likely to become poor.
