Assessing Income Deprivation and Financial Hardship during COVID-19: Evidence from Rural Households in Varanasi District

The COVID-19 pandemic had an impact on the economic well-being of rural households, forcing them to adopt a new survival strategy. The adverse effects of the lockdown were most acutely felt by the rural population, given their pre-existing deprivation in terms of living standards, access to daily necessities, and financial resources. This study aims to evaluate the economic status of rural households amid the COVID-19 pandemic. Furthermore, the present study explores the deprivation in the average monthly income of households from the period before the COVID-19 pandemic to the time of the survey. This study is based on cross sectional data of 300 households in 30 villages of Varanasi district situated in northern region of India and eastern region of Uttar Pradesh. Logistic regression was used for assessing the concern of economical needs and Wilcoxon sign rank test was used for measuring the change in average monthly income of the households. Households belonging to OBC, SC/ST, and other minority categories had 6.71 and 9.14 times higher odds of facing a lack of daily necessities, including rations, during the pandemic. Moreover, there was a significant difference observed in average monthly income of the households according to the socio demographic characteristics of the households. This study sheds light on the disparities and challenges faced by rural households during the COVID-19 pandemic, emphasizing the need for targeted interventions and support mechanisms to address the economic vulnerabilities within these communities.