<b>Effect of Price Subsidy on Nutritional Status</b> Price subsidy program to enhance the calorie intake has been implemented in many developing countries since nutritional status plays a vital role in the labour productivity thereby affecting economic growth and development. The program fails to have the desired impact on nutrition as observed in India. Studies from other countries however, suggest that price subsidy can be an effective instrument in tackling nutritional deficiency. This literature review tries to address the question How effective is price subsidy in improving the calorie intake of households 882-887 Issue-5 Volume-1 Divya Sharma | Supriya Anand