Cash Transfer versus Staple Food Subsidies: An Effective Factor on Food Security and Expenditure of Urban Households in Iran

In 2010, food subsidy program implemented since 1979 was replaced by unconditional cash transfer (CT) in Iran. The present pre-and-post evaluation study aims to compare food security and expenditures of urban households during the implementation of food subsidy and CT programs.

Using a stratified cluster sampling method, 266 households were selected from Tehran city. Data were collected in two phases: before (2009) and after (2012) implementing CT program using questionnaires including demographics; household expenditure; locally validated Household Food Insecurity Access Scale (HFIAS); and three consecutive 24-hours diet recalls. Seven focus group discussions (FGDs) with women were also held.

After implementing CT program, the households' food and total expenditures increased and their family size decreased. Mild, moderate, and severe food insecurity increased from 19.3%, 13.3%, and 11% to 28.4%, 15.5%, and 12.5%, respectively (P<0.001). There was a significant decrease in consumption of fat and oils and sugary food groups (time effect P<0.05). The consumption of fruits, meat, and dairy products was lower in the food insecure women than in the food secure ones (group effect P<0.05). However, the food secure and insecure households behaved differently in terms of only sugar consumption (time group effect P<0.05). Based on the FGDs, relative deprivation and social gaps increased.

Considering the reduction in welfare index, targeting poor/vulnerable groups, as well as conditional CT could be considered in Iran