Food Calorie Intake under Grain Price Uncertainty in Rural Nepal

This study evaluated the effects of grain output price uncertainty on the farm income of rural households and, consequently, how this uncertainty influenced caloric intake through changes in farm income. Using a national rural household survey data set in Nepal, augmented with output price uncertainty measures calculated from historical time-series data, we found that grain output price uncertainty (especially for rice and wheat) tends to decrease crop production income of rural households. In addition, we found that lower crop income from production decreases calorie intake of rural households. Taken together, these results suggest that output price uncertainty during the production process tends to reduce caloric intake of rural Nepalese households. The price uncertainty seemed to reduce the crop income households need to buy calorie-rich staple foods.