The Alagh Committee's 1979 Calorie Norms
For many years, the Indian government's approach to estimating poverty was anchored in a nutritional standard, specifically a minimum daily calorie intake. This method was institutionalized in 1979 following the recommendations of a Task Force on 'Projections of Minimum Needs and Effective Consumption Demands,' chaired by Y.K. Alagh. The Alagh Committee defined the poverty line as the cost of an average consumption basket sufficient to meet specific calorie norms, setting different standards for rural and urban areas.
- The Rural Standard: For rural areas, where the population generally engages in more physically demanding agricultural labor, the calorie norm was set at 2400 kcal per capita per day. This higher requirement was based on the premise that rural workers expend more energy compared to their urban counterparts.
- The Urban Standard: For urban areas, where physical exertion was assumed to be less, the norm was fixed at 2100 kcal per capita per day.
Based on these calorie requirements and 1973-74 price levels, the Task Force converted the nutritional norms into a monetary value. The poverty line was monetized at Rs. 49.09 per capita per month for rural areas and Rs. 56.64 for urban areas. This methodology marked the first official and systematic attempt to measure poverty in post-independence India.
The Evolution of Poverty Measurement in India
While the calorie-based approach provided a tangible, quantitative measure, it was not without its critics and limitations. The method was criticized for being too simplistic and for not accounting for the changing consumption patterns and non-food expenditure needs of the poor, such as healthcare and education. Subsequent expert groups were appointed to revise and refine the methodology.
The Lakdawala Committee (1993)
The expert group chaired by D.T. Lakdawala retained the calorie norms but recommended a change in how the poverty lines were updated. It suggested using different Consumer Price Indices (CPI) for rural (CPI for Agricultural Labourers) and urban (CPI for Industrial Workers) areas to more accurately reflect price changes faced by these populations.
The Tendulkar Committee (2009)
The Suresh Tendulkar Committee represented a major shift away from the calorie-centric methodology. Instead of a fixed nutritional value, it adopted a new approach based on Monthly Per Capita Consumption Expenditure (MPCE), including spending on food, education, and health. It recommended:
- Shifting away from a strict calorie norm.
- Using a uniform poverty line basket (PLB) for both rural and urban areas, though with different monetary values reflecting price disparities.
- Adjusting price indices to account for spatial and temporal differences.
The Tendulkar Committee's recommendations, which were based on 2004-05 data, established rural and urban poverty lines at Rs. 447 and Rs. 579 per month, respectively. For the year 2011-12, the Planning Commission updated these to Rs. 816 (rural) and Rs. 1000 (urban), with the number of poor dropping to 21.9% of the population.
Comparing Poverty Estimation Methodologies
| Feature | Alagh Committee (1979) | Tendulkar Committee (2009) |
|---|---|---|
| Primary Metric | Minimum daily calorie intake | Monthly Per Capita Consumption Expenditure (MPCE) |
| Rural Calorie Norm | 2400 kcal per capita per day | Not a fixed calorie norm; incorporated changing consumption patterns |
| Urban Calorie Norm | 2100 kcal per capita per day | Not a fixed calorie norm |
| Monetary Value (1973-74) | Rs. 49.09 (Rural), Rs. 56.64 (Urban) | Not applicable to this baseline; monetary values set based on 2004-05 expenditure |
| Inclusion of Non-Food Items | Limited consideration; focus on food basket cost | Explicitly includes private expenditure on health and education |
| Price Adjustment | Initially updated using a deflator; Lakdawala later suggested using specific CPIs | Utilized new price adjustment procedures to address spatial and temporal variations |
The Rangaranjan Committee (2014) and Beyond
Following public and academic debates over the Tendulkar Committee's relatively low poverty line, another expert group led by C. Rangarajan was constituted. The Rangarajan Committee suggested a return to considering nutritional requirements, among other factors, to set a new poverty line. It proposed a higher poverty threshold based on a different methodology, leading to a higher estimate of poverty. Despite various reports, the government has yet to officially accept a new methodology, and the Tendulkar-based figures are still sometimes referenced for comparative purposes. The discussion reflects the complexity of poverty measurement, moving from a single nutritional standard to a multidimensional approach reflecting evolving societal needs.
Conclusion
The minimum calorie intake in rural areas, fixed at 2400 kcal per capita per day by the Alagh Committee in 1979, was a foundational but ultimately outdated metric for determining India's poverty line. While it provided a clear standard based on physiological needs, it failed to capture the broader reality of evolving consumption patterns and non-food expenditures. The transition to a consumption-based methodology under the Tendulkar Committee reflects a more holistic understanding of poverty, acknowledging that well-being encompasses more than just caloric intake. Although the debate on the most appropriate methodology continues, the shift from a purely calorie-based approach marks a significant evolution in India's public policy discourse on poverty.
Key Factors in Modern Poverty Assessment
- Changing Lifestyles: Reduced physical labor in many rural jobs means lower calorie requirements, but overall living standards have risen.
- Health and Education Costs: Significant out-of-pocket expenses for healthcare and education are now recognized as crucial for assessing poverty.
- Multidimensional Approach: Modern poverty is viewed as a complex issue involving multiple deprivations, not just a lack of calories.
- Consumption Patterns: The poverty line now accounts for a more diverse basket of goods and services, reflecting shifts in what constitutes basic needs.
- Regional Price Differences: State-specific poverty lines are necessary to account for variations in the cost of living across India.
