.OTT India updates you with the latest news, Country’s no.1 digital news platform OTT India, Keeps you updated with national, and international news from all around the world. For more such updates, download the OTT India app on your Android and IOS device.
Expenditure on 'pan, tobacco, & intoxicants' has risen: Insights from India's Household Expenditure Survey
The dynamics of rural consumption have undergone a significant transformation in recent years, propelled by increased access to essential services and the wave of globalization. The advent of the internet revolution has played a pivotal role in reshaping rural landscapes,...
06:09 PM Feb 26, 2024 IST
The dynamics of rural consumption have undergone a significant transformation in recent years, propelled by increased access to essential services and the wave of globalization. The advent of the internet revolution has played a pivotal role in reshaping rural landscapes, leading to a surge in the consumption of processed and ready-to-eat food items.
The Ministry of Statistics and Programme Implementation's Household Consumption Expenditure Survey for 2022–23 sheds light on these evolving consumption patterns, providing a glimpse into the past 11 years of domestic expenditure trends.
Rising Consumption of Processed Food
The latest survey data reveals a notable uptick in the consumption of processed and ready-to-eat food items in both rural and urban areas. According to the report, the share of expenditure on 'beverage, processed food, and others' has increased to 9.2% of the Monthly Per Capita Consumer Expenditure (MPCE), up from 7.9% in the 2011-12 survey. Similarly, expenditure on 'pan, tobacco, & intoxicants' has risen from 3.21% to 3.79%.
Shift in Consumption Patterns
While analyzing consumption trends over four time segments starting in 1999, the report highlights a concerning trend - a decline in the absolute consumption of food items, coupled with a surge in expenditure on processed food. This shift underscores the changing preferences and dietary habits of households, driven by factors such as convenience and changing lifestyles.
Financial Disparities
One of the key findings of the report is the widening financial disparities between rural and urban populations. The average Monthly Per Capita Consumer Expenditure (MPCE) for the bottom population segment in rural areas stands at Rs. 1,373, compared to Rs. 2,001 for urban households. Despite this disparity, rural India continues to allocate a significant portion of its expenditure towards food, accounting for 46% of total MPCE, while urban areas allocate 39%.
The Household Consumption Expenditure Survey for 2022–23 underscores the evolving landscape of rural consumption in India, marked by a notable shift towards processed food items. While this trend reflects changing consumer preferences and lifestyle choices, it also highlights the widening financial disparities between rural and urban populations.
Read also: Insights from India’s Household Consumption Expenditure Survey
As policymakers and stakeholders navigate these shifts, there is a growing need for targeted interventions aimed at promoting inclusive growth and addressing the challenges posed by changing spending patterns.
.