The government uses Monthly Per Capita Expenditure (MPCE) as an alternative for income of households to identify the poor. The estimation of the poverty line is calculated by multiplying the prices of minimum calorie intake in rupees, i.e. 2,400 calories per person in rural areas and 2,100 calories per person in urban areas. The calorie-based norm is not sufficient to identify the poor because of the following reasons:
- It does not differentiate between the very poor and the other kind of poor because it groups all the poor together.
- It considers the expenditure on food and other selective items as an alternative for income without any concrete base for measurement of poverty.
- It is difficult to identify who among the poor really require the most assistance.
- It does not take into account important factors associated with poverty such as access to education, health and water.
- It does not take into account social factors responsible for people living in poverty.
Thus, the calorie-based norm is not sufficient to identify the poor in the country.
