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From food security towards nutrition security – The crucial role of the rice fortification initiative of the Government of India

Posted on by Deepesh Singh

India is at a pivotal moment in its journey towards achieving comprehensive food and nutrition security, particularly through the innovative initiative of rice fortification led by the Government of India. As we face the challenge of malnutrition and micro-nutrient deficiencies, the government has taken significant strides to ensure that our population has access to nutritious food that meets their dietary needs.

The Importance of Food Security

Historically, India has transformed from a nation reliant on food imports to one of the world’s largest agricultural producers. With self-sufficiency in food grain production, India now ranks among the top producers of various crops, including rice, a staple for approximately 65% of our population. The Government of India procures rice, wheat, and millet from farmers for distribution through its social safety net programs. The National Food Security Act (NFSA) plays a crucial role in this transformation by providing subsidized or free food grains to over 813 million people, focusing mainly on vulnerable groups, including pregnant women, lactating mothers, and children under 14.

The Targeted Public Distribution System (TPDS) ensures no individual goes hungry. During the COVID-19 pandemic, initiatives like the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) demonstrated the government’s commitment to food security by providing additional free food grains to those in need. This initiative will continue for five years, starting January 2024, reflecting the government’s long-term vision for addressing national food and nutrition security. This long-term commitment reassures the public and stakeholders of the initiative’s sustainability and dedication to the cause, instilling a sense of security and confidence in the initiative’s future.

Transitioning Towards Nutrition Security

While achieving food security is essential, it is equally vital to transition towards nutrition security. Anemia remains a significant public health concern in India, affecting maternal and child health and national productivity. In response, the government launched the Anemia Mukt Bharat (AMB) initiative in 2018, which includes mandatory provisions for fortified foods in public health programs.

Fortification involves intentionally boosting the levels of key micronutrients—such as vitamins and minerals—in food or condiments. Not only does fortification increase the nutritional value of staple foods, but it also helps to replenish micronutrients that may be lost during food processing.

The government initiated a rice fortification pilot program in 2019, recognizing rice as a staple millions consume. In 2021, on the occasion of Independence Day, Hon’ble PM Sh. Narendra Modi announced that fortified rice will be provided across all government social safety net schemes by 2024. The initiative was thus scaled in a phased manner, accounting for the rice fortification ecosystem and supply chain growth simultaneously to meet the requirements of central government schemes. This ambitious plan aims not only to enhance nutritional standards but also to combat anemia effectively.

Progress and Achievements

The rice fortification initiative has made significant strides, being implemented in phases after the pilot and expanding across various programs such as Integrated Child Development Services (ICDS), school feeding program (PM-POSHAN), and Targeted Public Distribution System. By March 2024, all non-fortified rice in these social safety net programs has been replaced with fortified rice. The program has been evaluated, and the findings have shown promising results, indicating reductions in the prevalence of anemia among children and women in study districts. Buoyed by the results and further need to work on micronutrient deficiencies, the Government of India has recently extended this initiative until December 2028 with a budget outlay of INR 17082 crores. The quantity of fortified rice distributed and the budget outlay of the initiative have increased multifold since the pilot, instilling optimism for the future of nutrition security in India.

Table 1: Giant leap in program implementation and commitment of the Government of India to the Rice Fortification Initiative

Implication for Private Sector: The Rice Fortification Ecosystem developed so far, and opportunities ahead

The rice fortification process involves enriching rice with Iron, folic acid, and Vitamin B12 by blending custom-milled rice with fortified rice kernels (FRK) 1% by weight. Similarly, fortified rice kernels are prepared by adding fortificants (Iron, folic acid, and Vitamin B12) premixes with rice flour and water, and FRK is made through the extrusion process.

The Government, working alongside key stakeholders and industry, has made significant strides in developing India’s rice fortification ecosystem. The infrastructure needed for manufacturing, blending, and ensuring the quality of fortified rice has grown robustly. The country has approximately 925 active fortified rice kernel manufacturers with over 111 lakh metric tons of production capacity annually. Approximately 232 new premix manufacturers have been established in the country. Additionally, around 21,000 operational rice mills are now equipped for blending fortified rice. The Food Safety and Standards Authority of India (FSSAI) has established testing protocols that ensure consistency across laboratories, enhancing the quality assurance process for fortified foods. As of February 2025, there are 57 FSSAI-empaneled NABL-accredited labs for fortified rice testing, 32 for testing Fortified rice kernel, and 13 for testing premixes in the country. The private sector’s active participation and contribution to the initiative are highly valued and integral to its success.

The initiative has been extended until December 2028, with increased yearly blending and a fortified rice kernel requirement. This extension provides policy consistency and a clear timeline for stakeholders to plan their participation in the initiative. It also demonstrates the government’s long-term commitment to the rice fortification initiative, encouraging stakeholders to continue supporting and participating. Moreover, the success of India’s rice fortification initiative has sparked renewed interest from other countries in the Global South, who are now looking to replicate this model in their nations. This opens the doors for the open market fortification of rice and exporting fortificants, Fortified rice kernels, and fortified rice.

Looking Ahead: The Way Forward

Monitoring and evaluating the rice fortification program, including quality aspects and its impact on public health outcomes, is paramount. The Government of India is conducting a time series repeat cross-sectional study to measure the impact of iron-fortified rice on iron deficiency anemia among the targeted consumers. Once available, the results will help refine strategies and ensure effective delivery.

Furthermore, successfully implementing rice fortification benefits the current situation and opens up possibilities for fortifying other staples such as lentils, millets, and other grains with essential micronutrients like iron, zinc, and folic acid. This promising prospect can significantly enhance the nutritional profile of our food supply, offering a brighter future for public health.

Additionally, integrating the provision of other nutritious commodities such as millet, fruits, vegetables, eggs, and milk into the public distribution system’s supply chain through initiatives like Jan Poshan Kendras and promoting sustainable agricultural practices can significantly enhance nutritional security and resilience against future food challenges. Engaging stakeholders at the State level, fair-price shop dealers, and communities about the benefits of fortified staples and a diverse diet can further bolster the program’s success.

Ultimately, a holistic approach that combines fortification with diversification and nutrition education will ensure that India’s population survives and thrives, equipped with the necessary knowledge for a healthy and productive life.

Conclusion

India’s rice fortification initiative marks a significant step towards addressing malnutrition and anemia by integrating fortified rice into social safety net programs. With substantial progress in infrastructure and promising initial results, the initiative is set to enhance nutritional standards nationwide in the medium to long term. Continuous monitoring and the inclusion of other nutritious commodities will further bolster nutritional security and resilience against future food challenges.

This article was first published on the NuFFooDS Spectrum platform on 6th March 2025.

The role CICO agents play in Ethiopia’s social payments

Posted on by Deepesh Singh

Breaking barriers: A study on female cash-in cash-out (CICO) agents and their potential to drive financial inclusion

Posted on by The Helix Institute at MSC

This study explores the critical role female cash-in cash-out (CICO) agents play to advance financial inclusion across nine countries. It identifies systemic barriers that these agents grapple with, such as social norms, limited financial support, and safety concerns. The study provides actionable strategies to improve the recruitment, retention, and performance of female agents through a lifecycle approach to strengthen digital ecosystems.

Building LMI communities’ confidence in digital financial services: A behavioral science approach

Posted on by Deepesh Singh

The struggle to overcome digital hesitancy

Subodh is a 44-year-old garment shop owner from rural Uttar Pradesh. He faces a tough choice. His son needs INR 5,000 (~USD 57) for a school competition. For this to happen, Subodh must make a long trip to the bank to withdraw money. This means he must close his shop and lose a day’s business. Although he owns a smartphone, Subodh avoids digital payments due to widespread stories of fraud. He is not confident about online transactions and thus chooses to go on the long journey to the bank, and in the process, sacrifices both time and earnings.

Figure 1: About Subodh and similar personas

Similarly, Meera, a homemaker in rural Andhra Pradesh, has been struggling to repay INR 3,000 (~USD 35) for a microfinance loan that she had taken due to a family emergency. Although she owns a smartphone and has a linked digital wallet, she fears transaction failures, which stop her from using it. In her community, a missed loan repayment carries a social cost—a negative reputation. Overcome by doubt, Meera chooses to do nothing. Yet her fear holds her back and Meera chooses to rather risk financial penalties than attempt a digital transfer.

Figure 2: About Meera and similar personas

Subodh and Meera’s experiences highlight behavioral barriers that hinder the use of digital financial services (DFS). Because of such barriers, people hesitate to adopt DFS even though they may have access to smartphones. MSC’s six village story study found that only 14% of account holders used United Payments Interface (UPI)—the most accessible and affordable DFS facility available in India.

People like Subodh and Meera forego the potential for more convenient financial transaction platforms due to fear of fraud or making costly mistakes. Challenges, such as limited mobility, low financial literacy, and a lack of confidence, worsen these issues. Gender centrality acknowledges the differing financial needs and behaviors of men and women, shaped by social norms and inequalities. The following financial services space (FSS) framework highlights the dimensions for behavior change to enhance financial inclusion. It shows that the financial services space has not evolved for these customers, especially in the motivation dimension, which is highly influenced by multiple fears and awareness challenges, among other aspects.

Figure 3: Financial Services Space framework

As per the National Centre for Financial Education (NCFE), only 27% of the Indian adult population is financially literate, while most individuals only possess a basic level of financial literacy. Although initiatives, such as the “RBI Kehta Hai” campaign and initiatives by the Centre for Financial Literacy (CFL) and financial literacy centers (FLCs) promote financial awareness, they may not fully address the emotional barriers and fears associated with DFS.

The Jagruti Digital Mitra intervention

Jagruti’s innovative content and delivery mechanisms

MSC applied its Market Insights for Innovation and Design (MI4ID) approach and infused behavioral science and human-centered design principles to craft engaging and relatable content.

Figure 4: Use of behavioral science principles and interactive pedagogy

Content: Harnessing emotions to drive financial decision-making

Emotions are an essential factor that shape attitudes and financial decision-making. Digital content designed to resonate with emotional responses can enhance user experience and drive meaningful action. MSC recognized this and created vibrant animated materials that featured relatable rural characters to engage audiences with limited literacy. These initiatives incorporated gamification and interactive techniques to integrate financial skills seamlessly into daily life. They helped debunk myths and build trust in financial services.

Figure 5: A flashcard activity- Conduct ATM withdrawal by rearranging the steps

Figure 6: Interactive and handy flashcards to share personal stories to influence behavior

Delivery mechanism: Enhanced outreach through the PTE framework

The efficient delivery of digital financial capability (DFC) content requires customized channels built on the phygital, teachable, and engagement (PTE) framework. The Jagruti Digital Mitra program exemplifies this approach by combining physical and digital strategies to reach last-mile customers effectively. The Jagruti volunteers used interactive and engaging content and local stories that featured the program’s mascot, “Jagruti Didi,” to prevent content fatigue. The volunteers used teachable moments to engage with customers while they waited in queues outside bank branches, made loan repayments during self-help group (SHG) meetings, or participated in discussions on banking at gram sabhas (village meetings).

These interactions were strategically designed to enhance the adoption of digital financial services. The program integrated these innovative engagement approaches to introduce low- and moderate-income (LMI) users to digital financial services in a relatable and participatory manner. These users included women in particular. The integrated approach ensured inclusive access and sustained engagement to develop meaningful financial capability.

Figure 7: Use of the PTE framework to deliver digital financial literacy modules

Impact:

In just four months, 26 Jagruti digital mitras reached more than 2,300 community members. They focused on engaging 2,200-plus women. The intervention expanded outreach among female customers and built a network of community influencers and role models. These influencers supported volunteers in outreach activities, shared stories of change, and inspired potential beneficiaries to embrace digital financial services (DFS).

The program brought about noticeable shifts in women’s confidence when they dealt with DFS. As a Jagruti Didi remarked, “The unique tools provided to me to spread awareness enable me to instill confidence in women and conquer their DFS fears—whether it is the gamified snakes and ladders approach, storytelling, or the role-playing format of Ramesh Bhaiya and Jagruti Didi.”

Lessons learned: Empowering communities with a bottom-up approach

The bottom-up approach in the Jagruti Digital Mitra initiative demonstrates the transformative potential of localized and participatory strategies and community-driven models in overcoming barriers to DFS adoption. This approach equips volunteers with culturally resonant methods, such as storytelling, folk songs, and ritual design—a framework that uses symbols, narratives, and shared values. It builds trust and connects financial concepts to everyday experiences. Sustained volunteer engagement, supported by suitable incentives and ongoing support, is key to the long-term impact and scalability of such programs.

MSC recognized its importance and has integrated this approach into the financial inclusion training programs under the NITI Aayog’s Aspirational Block Programme (ABP). Furthermore, MSC has recommended that this financial education model be integrated into the block development strategies of India’s 500 aspirational blocks. Jagruti also inspired the design of capacity building on mobile financial services (MFS), agent banking, and e-commerce in Bangladesh for projects funded by the Gates Foundation, the Asian Development Bank Institute (ADBI), and the Griffith Asia Institute (GAI).

MSC’s approach to financial literacy or financial capability has emphasized the hands-on, practical application of tools to transfer knowledge, skills, and attitudes effectively. This strategy is designed to build financial capability through experiential learning, which reinforces that financial education and digital capability programs should enhance usage and not be limited to imparting theoretical concepts. We learned that continuous handholding and confidence-building elements are helpful as they address motivational barriers and expand the financial services space (FSS) for users.

Institutions must shift toward trust-based, community-led, and behaviorally informed models for widespread digital adoption. The Jagruti approach offers a replicable framework that ensures financial literacy is taught, lived, trusted, and applied.

Investing with heart and wisdom: Strategic amplification of female agency frontlines

Posted on by The Helix Institute at MSC

The stories of female financial agents are strikingly similar worldwide, no matter where they operate or their business lifecycle. Regardless of their specific contexts, female agents work under far-from-ideal conditions. Unlike their male counterparts, they often grapple with inadequate support, pervasive social barriers, and scarce resources imperative to sustaining and growing their businesses.

In Nigeria, while female agents are more visibly engaged in agency banking, they face significant hurdles, particularly in maintaining sufficient cash flow. A weekly cap on bank withdrawals worsens their challenges—a common issue in other countries—which forces these female agents to rely on loans to run their businesses and manage liquidity. This reliance on borrowed funds adds another layer of complexity to their already challenging roles.

In India, female agents have limited customer outreach and may not get support like male agents and BC Sakhis (a type of female agent supported by the government). Meanwhile, in Uganda, female agents face cultural expectations that confine them to domestic roles, which limit their time and mobility to manage their businesses effectively. 

A gender-balanced network of DFS agents helps bridge the gap between underserved populations and formal financial systems to accelerate financial inclusion. Female agents play a unique role in fostering trust and accessibility, especially among female customers who may feel more comfortable interacting with someone of the same gender. This comfort can break down social and cultural barriers that often prevent women from accessing financial services. 

While policy focus on female agents remains limited globally, notable exceptions exist in countries such as India, Pakistan, and Nigeria, which have introduced targeted initiatives. However, these efforts are far from comprehensive, and the broader ecosystem worldwide continues to present significant hurdles for female agents.

What can amplify female agents’ numbers and performance?

Our research found that providers may lack a fair understanding of the business case for female agents, which results in a limited focus on women’s recruitment and retention. A lack of gender-disaggregated data worsens this situation. 

Many markets, such as Uganda, Kenya, and Ethiopia, lack the mandate to collect gender-disaggregated agent data. This prevents providers from understanding the differences between male and female agents and makes the creation of targeted policies and support mechanisms difficult. Providers do not prioritize gender-disaggregated data collection, often due to a perception that female agents offer limited business value. This oversight strengthens barriers to female agents’ recruitment, retention, and overall success.

Even where gender-disaggregated data is collected, it is often underutilized, which prevents providers from assessing differences in the unit economics of female and male agents. This issue is prevalent in both developed and emerging markets.

We analyzed gender-disaggregated data from a few providers who record gender disaggregation. It revealed that female agents are more likely to serve vulnerable groups, such as women, customers with disabilities, and elderly customers. We also identified methods to tap into networks for recruitment.

In East Africa, although women manage their liquidity needs as well as men, if not better, they have less working capital. Women report holding 10-30% less cash and e-float than men across three East African markets. In Uganda, some female agents borrow from their village savings and loan associations (VSLAs) and savings and credit cooperative organizations (SACCOs), while others, especially in rural areas, buy float from super agents, which carry premiums compared to borrowing directly from providers.

Lending to agents is primarily driven by the private sector and often lacks customization for female agents, who frequently struggle to repay loans within short timeframes. This difficulty arises from barriers, such as high upfront business costs, often higher for women. The high costs, in turn, stem from factors such as limited access to affordable startup capital, expenses to secure accessible and safe business locations, and funds needed to set up and maintain the agency infrastructure. 

Additionally, women often face higher transaction costs due to mobility constraints and the need for additional security measures to ensure their safety while they operate their businesses. Household responsibilities and other social norms further exacerbate these challenges. However, the most significant challenge is their lower income and savings, which makes them economically vulnerable and potentially risky for lenders. As a result, female agents face unique viability concerns that impact their sustainable participation in the digital financial services ecosystem.

While all agents grapple with viability, gender-specific products at CICO locations have been shown to enhance women’s financial inclusion and female agents’ income. However, many FSPs lack products tailored specifically for female clients that female agents can promote and deliver. 

Female agents in countries such as India are often the last to receive training on non-CICO products, such as credit lead generation, which could significantly enhance their business viability. This lack of targeted service offerings and training limits female agents’ ability to utilize their market presence fully and meet client needs. Similarly, female agents in Bangladesh frequently struggle during recruitment due to cultural norms and safety concerns, which discourage their participation in agent networks and lead to a gender imbalance. Moreover, female agents in Nigeria face higher dropout rates due to a lack of mentorship programs and inadequate support systems that fail to address their unique challenges, such as balancing work with domestic responsibilities. These gaps in recruitment and retention strategies hinder female agents’ growth and sustainability across these regions.

All these challenges are compounded by deeply rooted social norms that often discourage women from taking on roles perceived as unconventional, such as managing a financial outlet. Policymakers and service providers have long struggled to recruit female DFS agents, retain them, and address the barriers that limit their participation and success. 

The heart and the wisdom

A significant challenge in recruiting and retaining female DFS agents is the lack of a clear and well-understood business case for their inclusion. Female agents earn less than their male counterparts, even when they enroll more customers. 

However, the current economics also do not show a clear picture, as they fail to account for many nuances, such as the Lifetime Value (LTV) of agents. Various stakeholders we spoke to indicated a lack of understanding of the LTV of agents disaggregated by gender. For example, they overlook that female agents often provide superior customer service, a valuable asset for FSPs, and they recruit more customers (including female customers) who, in turn, bring business over the years. 

If these female entrepreneurs are provided adequate support—which we know is often lacking—they are likely to perform better. If FSPs are to address these disparities, they must develop business models that acknowledge the lifetime value of female agents in terms of their role in maintaining a consistent and inclusive business and driving revenues for the provider, even if they earn less. By valuing these contributions, the financial sector can create a more inclusive environment that supports female agents’ growth and success. If the sector can focus on the unique challenges of female agents, they will go beyond merely participating in the ongoing evolution of CICO agent networks—to lead it. 

The strategic amplification of female agency frontlines in digital financial services is not just a matter of gender equity. It is a critical component in expanding financial inclusion. As the stories of Amina and many other women across diverse regions illustrate, female agents face unique challenges that require targeted interventions and support. Addressing these barriers—whether related to social norms, access to capital, training, or mobility—is essential for unlocking female agent networks’ full potential. 

[1] The figures mentioned here correspond only to this mobile network provider interviewed as part of this study. The provider here is an established market player with a huge network, and hence, these figures may vary for other providers depending on their size and other parameters.  

Can Bangladesh close the credit gap of microenterprises through digital platforms?

Posted on by Saumya Dixit

Digital platforms can offer a transformative solution to the credit crisis Bangladeshi microenterprises face by leveraging data to offer tailored financial products

Microenterprises lack access to formal credit due to a lack of collateral, limited financial history, and high transaction costs. Photo: TBS

 

Microenterprises play a crucial role in driving Bangladesh’s economy. They comprise 90% of the country’s business and contribute 27% to the GDP. However, they struggle to access formal credit due to a lack of collateral, limited financial history, and high transaction costs. This forces many to rely on informal lenders who offer unfavourable terms.

Amid these challenges, digital platforms have emerged as a scalable solution to improve business operations and facilitate access to credit. Studies show that digital platforms can reduce operational costs and increase monthly incomes—from $592 to $993. Yet, the vast potential of digital platforms lies untapped, unlocking which can transform access to credit for microenterprises.

Traditional credit assessment methods often exclude microenterprises that lack bank statements or formal records. However, digital platforms generate vast amounts of transactional and behavioural data, which range from sales volume and payment history to inventory turnover and customer engagement.

Financial institutions can use this data to build more accurate credit profiles of microenterprises, assess their creditworthiness without traditional credit histories, and create tailored loan products.

For instance, in Indonesia, Finfra and Xendit have developed a new system of API-enabled bank accounts that open accounts on the borrowing party’s behalf. Through these Finfra- and Xendit-built accounts, users can avail themselves of short-term loans that provide the necessary capital, offer repayment flexibility suited to their needs and enable business growth.

Countries like India, Kenya and Nigeria have also shown how digital platforms can reshape the financial landscape for microentrepreneurs through partnerships with financial institutions.

Bangladesh can follow suit—only if it enables partnerships between financial institutions and digital platforms to provide flexible, data-driven credit solutions that empower microenterprises to grow and achieve long-term sustainability. Such partnerships must be supplemented with policies that enable seamless partnerships. Policies should support co-branded loan products, such as BRAC’s e-loan with ShopUp, by promoting the use of e-KYC for identification and collateral-free loan models.

One significant policy shift that can enhance credit access is the introduction of a Digital Business Identity Number (DBID) for microenterprises that operate entirely online. A DBID can formalise digital microenterprises, which would allow them to build a recognised financial footprint. This unique identifier can enable financial institutions to assess the creditworthiness of microenterprises based on their digital sales records, transaction history and customer engagement.

Beyond DBIDs, policy reforms should strengthen trade license policies to facilitate microenterprise formalisation. A centralised digital system for trade licenses, with online applications and local government-led verification, can streamline registration and ensure wider financial recognition.

Additionally, policies must support the integration of digital platforms with financial institutions so they can use the platforms for credit access. By enabling structured collaborations, digital platforms can provide microenterprises with tailored financial solutions, such as BNPL options and sector-specific loan products for different businesses.

As policies evolve to support digital platforms, credit products tailored to specific business cycles can maximise the growth and profitability of microenterprises. For instance, in the retail and social selling sectors, businesses peak during Eid and Durga Puja, which creates a short-term need for capital.

Similarly, in transport and logistics, the demand for trucks peaks from March to June due to increased imports and again from September to November, driven by export demand. Hence, financial institutions must recognise these patterns through the data-driven capability of digital platforms and provide working capital at the right time to help microenterprises scale effectively.

Digital lending has immense potential. Yet it becomes effective only if its implementation is safe and responsible. The Bangladesh Bank should develop clear regulatory guidelines to ensure that microentrepreneurs benefit from safe and effective lending.

These guidelines should help integrate digital platforms and financial institutions seamlessly while mitigating associated risks. The guidelines should also address data privacy, cybersecurity and risk management concerns and strengthen frameworks that protect customer information to encourage trust and enhance the adoption of digital lending solutions.

Today, Bangladesh stands at an inflection point where it can revolutionise financial inclusion for its microenterprises. The country must seize this opportunity to unlock the full potential of digital platforms.

The right mix of policies, technology and collaboration can enable small businesses to thrive, create jobs, and contribute to the nation’s economic progress. The Bangladesh Bank’s leadership will be crucial to drive this initiative forward. The ultimate goal should be to make access to credit a right for all—rather than a privilege for a select few.

The op-ed was first published on The Business Standard on 13th March, 2025