Benefit-cost analysis of iron fortification of rice in India: modelling potential economic gains from improving haemoglobin and averting anaemia

Abstract

ABSTRACT This paper presents an ex-ante Benefit-Cost analysis of proposed fortification of extruder rice with iron under the social safety net in India. The benefits of iron fortification are estimated in terms of economic gains from increases in current work productivity among adults and future productivity from improvements in learning among school-going children. The base case scenario indicates a benefit cost ratio of 8.2, with 69 percent coming from improved learning in school and the remainder through enhanced work productivity. Benefit-cost ratios are also presented for a range of alternative assumptions, all of these resulting in ratios greater than 1. Nevertheless, despite decades of fortification at scale, a principal conclusion of this study is that future benefit cost models would gain confidence if more evidence is generated on the relationship of improved biomarkers for iron and changes in measures of cognition and labour productivity.