Is localization better than globalization for sustainability? Evidence from the nutraceuticals industry for managing malnutrition in India

Shailly Chaurasia, Rupesh Kumar Pati, Sidhartha S. Padhi and Srinagesh Gavirneni

International Journal of Production Economics, 2024, vol. 268, issue C

Abstract: The socioeconomic consequences of the worldwide burden of malnutrition are substantial, with long-term consequences for individuals, their families, and their countries. Despite being one of the world's greatest producers of various agricultural products, India has regularly performed poorly in the Global Hunger Index. The World Food Programme provides funds to deliver a nutraceutical product (Plumpy Nut) to malnourished children in Low- and Medium-Income Countries (LMIC). The cost of obtaining these items from the international market is high, and worldwide logistics contribute to pollution. Despite these efforts, there has been insufficient food to feed nearly 40% of malnourished children in India, owing to budget constraints. This research provides a linear programming model and the Augmented ε-Constraint Method for developing a sustainable nutraceutical network. The model examines whether localizing the availability of nutraceutical items, in comparison to global sourcing, might be a viable option for improved managing malnutrition in LMIC's. The findings illustrate that localization can lead to a significant reduction in both cost (50%) and greenhouse gas emissions (90%). In addition, localization leads to feeding increased number of malnourished children in the budget constraint environment. Localization can also lead to a reduction in lead time related to due import-related logistical delays. The study offers insights into various policy interventions for stakeholders such as the government, producers, malnourished children (consumers), and others, to reduce malnutrition, while contributing towards United Nations Sustainable Development Goals of Zero Hunger and Responsible Consumption-Production by 2030. We use a case study from India to validate the model.

Keywords: Nutraceutical supply chain (NSC); Sustainability; Plumpy nut; Localization; Make-in-India; Optimization model (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:268:y:2024:i:c:s0925527323003389

DOI: 10.1016/j.ijpe.2023.109106

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