Blog

Mid-day Meal Scheme : How India feeds 115 million children every school day

In India, 115.9 million children from vulnerable segments receive cooked meals every school day through the Mid-day Meal Scheme (MDMS). The MDMS is the flagship school-based meal program of the Government of India (GoI). It started in 1925 in Madras (now Chennai) to end classroom hunger. The scheme has a twofold objective of increasing student enrolment and attendance while improving nutrition. Since then, the MDMS has evolved in terms of coverage, benefits, and implementation. Today, it counts among one of the more successful programs of the GoI.

The MDMS covers all primary and upper primary students (classes 1-8) who study in government and government-aided schools, and EGS or AIE centers including madrasas and maktabs. Children in primary classes receive 450 calories and 12 grams of protein per meal, while upper primary children receive 700 calories and 20 grams of protein.

MDMS is a centrally sponsored scheme (CSS). Two committees at the national level, the Empowered Committee under the Ministry of Human Resources and Development (MHRD) and the Steering and Monitoring Committee, under the Department of School Education and Literacy, administer the MDMS. These committees are responsible for the overall direction of the MDMS, including program design, components, budget allocations, and monitoring process.

The MDMS has many components. Most are delivered to the schools as highlighted in the following graphic. The government provides food grains in the form of wheat and rice alongside LPG connections to schools. It also makes several transfers to bank accounts to reimburse schools for costs associated with cooking, procurement, or replacement of kitchen implements, and construction or repair of school kitchens.

Kitchen helpers cook and serve the meals to the children. The national mandate instructs that kitchen helper receive an honorarium of INR 1,000 (USD 14) per month deposited directly into their bank accounts. States are also permitted to top up these amounts. For instance, Kerala pays each kitchen helper INR 9,000 (USD 118) per month while Tamil Nadu pays them INR 10,083 (USD 133) per month. Additionally, students have started receiving a Food Security Allowance if their school cannot provide MDM daily.

The state governments also receive a fee for monitoring, management, and evaluation (MME) from the central government. The state-level committees use this transfer to ensure adequate monitoring by the district- and village-level committees and run digital monitoring mechanisms, such as the Automatic Monitoring System and Management Information System.

Most components of the MDMS were revised in 2019 when the government released new policy guidelines for MDMS and added additional components. This is evident in the increased allocation for MDMS in the Union Budgets. The budget allocation increased from INR 99 (USD 1.3) billion in 2018-19 to INR 121 (USD 1.59) billion in 2019-20 and INR 110 (USD 1.47) billion in 2020-21. In 2018-19, 90% of the funds available for MDMS were utilized.

The MDMS has capitalized on the improvements in digital infrastructure in India to incorporate an Automatic Monitoring System (AMS) and Management Information System (MIS). Both are used to monitor the scheme in real-time. The AMS allows schools to report the number of children that avail the MDMS each day. This facilitates monitoring and follow-up at the state or district level at no cost to the schools. Under the AMS, states have set up different systems for data collection, which includes Interactive Voice Response Systems (IVRS), SMS, mobile applications, or web applications. The data is aggregated at the state level in a predefined format and is uploaded to the MIS on a real-time basis. The MIS portal captures information on several important parameters of MDMS on both a monthly and annual basis.

Evidence shows that MDMS has had a positive impact on enrolment, and increased attendance and retention rates of students. According to some reports, students who receive MDM have shown a significant increase in classroom attention. This affirms that MDMS is well on its way to achieving its first objective of larger attendance and enrolment. However, it remains a long way from achieving its second goal of improving nutrition, as current practices have proven short of having any significant nutritional impact. There is a need for innovation and ideation on novel methods to improve MDMS. Work is already underway on this. Many Indian states have incorporated new interventions  as state guidelines that have been furthering the impact of the MDMS are not only improving nutrition but also enhancing other areas.

References

Data taken from the MDMS website as of the year 2018-19.

This is equivalent to grades 1 to 8 in the American Education System.

Education Guarantee Scheme/ Alternative and Innovative Education Centers

CSS are implemented by state governments. The central government, however, is the larger funder while states fund a smaller share. In the case of MDMS, the fund sharing ratio is 60:40.

The graphic highlights each of the components transferred to schools from the government. The quantum of each is also mentioned. Read more about plinth rates here.

LPG is Liquefied Petroleum Gas used for cooking.

We have assumed a conversion rate of USD 1 = INR 75.

Food security allowance is not a novel concept but has never been used before 2020. The first time the GoI is using it is at a time when schools have been shut since March, 2020 due to COVID-19. The state governments have been asked to transfer the food security allowance to the children.

These parameters include category-wise enrolment, details of the teachers, details of the kitchen-helpers with social composition, availability of infrastructural facilities, such as kitchen stores and kitchen implements, mode of cooking, drinking water, and toilet facilities.

Impact of COVID-19 on farmers in Kenya and the government’s response

The agriculture sector, the largest employer in the world, has been devastated by COVID-19. The measures taken by countries to curb the spread of COVID-19 have disrupted both demand and supply of agricultural products globally, particularly in developing countries where agriculture is labor-intensive. Although most countries designate agriculture as an essential service and exempt it from the restrictions in movement, the shift in demand from commercial to households coupled with the limited availability of logistical services has hit the sector hard.

Women are the backbone of agriculture and play a vital role in the local retail market, particularly in Africa. The outbreak of the pandemic further restricted their mobility, which was already low. They had to struggle to sell their produce and procure agricultural inputs.

As a result of COVID-19, farmers in Kenya now face several concerns and challenges. MSC carried out a dipstick study to understand the level of constraints the sector faces, how the government has been supporting the sector with relief measures, and what more needs to be done to help the sector recover.

Reduced income and the rising cost of cultivation has made farmers in Kenya more vulnerable

Agriculture dominates the economy of Kenya and employs more than 70% of the workforce. Agriculture contributes USD 1.37 billion in annual exports . The global lockdown has hurt Kenyan agriculture exports due to restrictions on the movement of goods. A study done by COLECAP indicates that Kenya’s agricultural industry suffers a loss of roughly USD 3 million every day during COVID-19 lockdowns.

The pandemic led to a significant decline in household income. The unavailability of agricultural input materials and uncertainty about the marketing of the products has reduced production. Farmers who produce perishable goods like horticulture and floriculture outputs could not sell their products and incurred losses. At least 45% of farmers have seen their household income fall.[1] Other sources of income like poultry and livestock could not help them much due to a substantial drop in demand

Subsequent relaxations of restrictions have improved sales, but demand remains low. The cost of transportation also remains high along with the high cost to procure raw materials. A study by the research firm 60_decibles reports that 71% of farmers paid a higher price for the inputs between June and October, 2020. Even the rent of land has increased by 27%. To cope with these rises, farmers have been cutting down on the cultivated areas—which will ultimately, make them more vulnerable.

The burden of loan repayment and reduced options to borrow have further complicated the challenges in liquidity that farmers face. Among the farmers in the survey, 47% had accessed loans after the pandemic while others were unable to access loans due to rigorous rules and conditions, particularly around collateral. They had to opt for credit from informal sources.

Digital technologies could provide solutions to some of the issues that face farmers, especially those related to access to markets and credit. However, the uptake of these technologies and platforms is limited among farmers. Only 40% of those surveyed have a smartphone and only 13% used digital agriculture extension services. Lack of awareness and sound digital literacy, financial constraints, and limited digital capability are key factors that led to low uptake.

Farmers have used the combination of coping mechanisms during the pandemic

Among the farmers surveyed, 60% relied on savings during the pandemic to meet their household expenses. Many farmers are worried as they exhausted most of the savings during this period and urgently need access to alternative solutions. Farmers usually save in the form of productive assets and sell them when they need money. They did the same during the pandemic, but could not get the right price due to low demand as even the buyers now have lower purchasing power—see “Recovery and survival of micro and small enterprises in Kenya in the wake of the COVID-19 pandemic”.

Digital credit provided some relief to many farmers helping them smoothen consumption. Farmers have also continued to rely on family and social networks to provide support to manage household expenses.

One-third of the farmers surveyed devised additional ways to increase their income by diversifying the sources, especially those who were producing perishable goods. Most of them have relied on existing businesses or other activities like day labor or working on other farms. These additional sources provided them some extra earnings. Laying off agricultural labor is also a common coping mechanism for farmers, which has further enhanced the vulnerability of typically poorer agricultural laborers.

The government of Kenya has extended its support to the farmers

In May 2020, the Government of Kenya has announced a stimulus package of USD 503 million to support the sectors hit by the coronavirus pandemic. It covered eight areas including agriculture.[1] Of the USD 503 million, the government channeled USD 30 million for the supply of farm inputs to cushion 200,000 small-scale farmers in 12 counties across the country in the first phase.

At the time of reporting, the e-voucher program is being implemented in partnership with Kenya Commercial Bank (KCB) and Safaricom. The objective of the program is to reduce pilferage and promote the purchase of farm inputs by farmers. Small scale farmers with five acres of land or less are eligible for support in the form of an e-voucher worth USD 200 per acre. The government also allocated USD 15 million to assist horticultural and flower producers to continue accessing international markets.

The Ministry of Agriculture laid out protocols and guidelines at the onset of the pandemic to minimize interruptions within the food supply chain. These include:

  • Designation of alternative market spaces for food vendors and farmers, such as stadia.
  • Daily monitoring of prices of key commodities and food in major markets.
  • Enforcement of recommended sanitary measures in market places, such as cleaning and sanitizing of markets after operations.
  • Encouraging the use of digital technologies for food procurement and home delivery to minimize interactions.

Farmers need additional support to restore agricultural activities and reduce vulnerabilities

Increase the outreach of government programs

  • Many farmers do not know how to access the e-voucher support program. The program’s coverage of 200,000 farmers in the first phase is widely seen as being insufficient. Private and public agencies can use digital channels, including mobile networks, to generate awareness of government initiatives for farmers to explain the eligibility criteria, entitlements, and the application process to avail the benefits.

In India, for instance, the technology platform Haqdarshak has built a repository of welfare programs and matches citizen profiles with welfare program eligibility. This enables prospective applicants to receive a customized list of eligible schemes. Haqdarshak works with the government, NGOs, and village-level entrepreneurs and has channeled benefits worth INR 1 billion (USD 13.67 million) to 296,100 beneficiaries. In Kenya, digital learning platforms, such as Arifu have used interactive SMS to provide training on good agricultural practices and financial literacy. Such platforms can be used to raise awareness among farmers on agriculture schemes. Further, radio and other electronic media campaigns should be tapped for effective coverage. Syngenta Foundation for Sustainable Agriculture and Kilimo Media International (KIMI), for example, have used radio to provide agricultural extension services for smallholder farmers.

Access to the market for agricultural products

  • The increase in transportation costs has made market accessibility more challenging for farmers. The government may establish collection centers for farmers to transport and sell their produce. It will also enable the government to store supplies for future use, enhance food security, and reduce market manipulation and the resultant fluctuations in commodity prices.
  • Furthermore, the government can facilitate public-private partnerships to improve market linkages. Makueni County has invested in a mango processing facility, which has helped farmers to earn better income through value-addition and reduction in post-harvest loses.

Agricultural finance

  • Farmers need immediate credit to meet sowing and cultivation expenses as they have used up their savings for household expenses. The availability of collateral-free, emergency finance can help them manage their situation in light of COVID-19.

The government and private agencies can support financial institutions with loan guarantee funds. In 2008, IFAD and AGRA provided USD 5 million as a 10% first loss guarantee to Equity Bank to disburse USD 50 million in agricultural loans to farmers with little or no collateral[1]. Equity Bank developed “Kilimo Biashara,” an agricultural financing product designed to make funding available and affordable to small-scale farmers. Similar initiatives are required to help farmers in accessing credit during the pandemic. Moreover, donors or the government or both can extend support to financial service providers to design farmer-friendly financial products and services.

The crisis brought about by the pandemic has highlighted the persistent issues that ail the agriculture sector of Kenya and forced government and non-government organizations to develop systems and institutions to better prepare farmers to respond to adverse situations like COVID-19. Even during the crisis, some success stories have emerged that demonstrate the resilience of local agriculture and food systems that could be replicated by the government and private agencies in other parts of the country.

One such example is the Utoma Youth Group of Makori and Homa Bay counties. The group’s agri-business suffered due to the inter-county travel restrictions. However, the members soon shifted their focus to local markets. The members harvested the crops in morning and afternoon shifts and individually delivered the produce to the households complying with the safety measures of maintaining social distance and using personal protective kits. Youth who lost their jobs and returned to the village also volunteered to work in the fields and sell the grains and vegetables locally along with other group members. While the group still faces a financial crunch because of the lower prices that they can realize in the local market compared to the market in Nairobi, it has managed to keep business afloat.

These measures could harness the natural entrepreneurial resilience of Kenyan farmers, and enable them to bounce back from the setbacks and hardships arising from the pandemic. Indeed, the crisis could be an important catalyst for the reform and restructuring of agricultural and agri-finance markets in Kenya.

[1] Working paper: Credit guarantee schemes for agricultural development, The World Bank and Agriculture Finance Support Facility

[1] BORGEN Magazine

[2] The sample size is, clearly, too small to be representative and therefore the percentages throughout this blog should be seen as
indicative.

[3] Government of Kenya; Ministry of Agriculture, Livestock, Fisheries and Cooperative; others

[4] Working paper: Credit guarantee schemes for agricultural development, The World Bank and Agriculture Finance Support
Facility

Impact of the COVID-19 pandemic on farmers-Kenya report

The COVID-19 pandemic has had a severe impact on the economic well-being of farmers. Despite an improvement in the sale of agricultural produce after relaxations of restrictions, low demand and fall in prices of agriculture produce continue to affect revenues and profits. The decline in non-agriculture opportunities for income generation has increased the pressure on household resources. While some farmers received food assistance in the initial phase of the pandemic, most did not get direct support from the government. With limited savings at their disposal, many farmers have turned to credit and the sale of assets. Farmers are likely to default on the repayment of existing loans but they urgently need access to credit to continue agriculture operations. Our report explains the current situation of the farmers and the support they need from the government, financial institutions, and donors to recover from the shocks of the pandemic.

 

Impact of the COVID-19 pandemic on CICO agents- Kenya report

Although CICO agents have been at the forefront of the social cash transfer program of the government during the COVID-19 pandemic which provided agents with some additional income. However, the commissions of CICO agents took a hit, which in turn affected the viability of the agency business. This was mainly due to the extension of fee waivers on bank-to-bank and bank-to-mobile wallet transactions and fee waivers on mobile wallet transactions up to KES 1,000 (~USD 100), along with low customer footfall. Liquidity remains a top concern for many agents as they lack adequate resources. Agents, therefore, need access to concessionary loans or stimulus packages from the government to revive their businesses as the economy gradually reboots. Our new report captures the challenges in agency operations and the coping strategies of CICO agents. It also provides recommendations for policymakers, financial institutions, and donor organizations to support the recovery of CICO agents.

 

 

Impact of the COVID-19 pandemic on micro, small, and medium enterprises (MSMEs)- Kenya report

As the economy gradually re-opened in Kenya, micro, small, and medium enterprises continued to feel the effects of the COVID-19 pandemic and earn less than they used to. The relaxation of restrictions restored transportation routes and enabled the easier flow of goods across locations, which improved supply chains. However, the adverse economic impact of the pandemic has reduced the purchasing power of customers significantly and forced them to spend more cautiously. This presents a challenge for entrepreneurs, who have been dealing with depressed demand for goods and services and low revenues on one hand and struggling to meet the rising expenses of their business and household on the other. This report unravels the impact of the pandemic on micro and small enterprises and highlights their coping strategies. It also provides recommendations for policymakers, financial institutions, and donor organizations to help these enterprises build resilience and recover.

 

 

Response to COVID-19 in Bangladesh

This report is based on MSC’s second round of research on the recovery of low- and middle-income (LMI) segments in Bangladesh from the COVID-19 pandemic. The report of the first round of the study is available here. Based on the survey of 97 low- and moderate-income households in Bangladesh, this report examines the effects of the pandemic on their lives and seeks to understand their perspective. It also contains case studies, recommendations, challenges, concerns, and opportunities for the LMI community in these trying times.