This article analyses poverty, in the light of the prevailing methodological and definitional debates, in Gujarat, one of the fastest growing states in India. We examine the divergence between the official and nutrition-based poverty lines (PLs) and analyse its possible causes. First, to study whether the 'PL bundle' has changed over time, we test whether poverty is sensitive to changes in the base year; second, we examine the impact of food prices on the change in consumption at given expenditure levels; and third, we study the possible relation between poverty and foodgrain availability. We conclude that poverty is underestimated because official figures do not consider the change in consumption patterns, occurring partly as a result of high relative food prices. Nutrition poverty levels in Gujarat are higher than all-India levels, which creates a case for direct nutritional intervention for the poor.