Anaida, A Sangma

Dynamics of food consumption across indian states: an analysis - Vellayani Department of Agricultural Economics, College of Agriculture 2025 - x,108p.

MSc

The study entitled "Dynamics of food consumption across Indian states: An analysis" was conducted at the Department of Agricultural Economics during 2024-25. The main objectives were to analyze temporal changes in the consumption of specific food groups, such as cereals and pulses and to assess the impact of various socioeconomic and regional factors on household food expenditure across seventeen states. This study used secondary data on household consumption expenditure surveys (61st, 66th and 68th rounds) published from various reports of the National Sample Survey Organization (NSSO) along with the latest Household Consumption Expenditure Survey Report, 2022-23. The survey report contains household, state and sector (rural and urban) level information regarding the patterns of consumption expenditures across various categories of goods and services in India. The data provides insights into household cereal and pulse consumption in quantity and value of commodities by expenditure group and shifts in consumption over time. Seventeen major states that had published data on their monthly consumption expenditure on food commodities were selected for the study. To meet the first objective, percentages and averages were found to analyse the temporal shifts in the consumption of rice, wheat, and total cereals across seventeen major states. This analysis was further refined by comparing data between urban and rural areas over four survey rounds. It was found that prominent rice-consuming states such as Assam, Jharkhand, Odisha, Kerala, Andhra Pradesh, and Tamil Nadu recorded marked reduction in rural rice consumption, while states such as Gujarat, Haryana, Punjab, and Rajasthan saw an increase. Wheat consumption trends had minor fluctuations but generally had a downward trend across all seventeen states. Despite a nationwide reduction in total cereal consumption, rice remains the preferred grain over wheat as of 2023, with average monthly per capita consumption rates of 9.60 kilograms of rice and 6.97 kilograms of wheat, indicating a preference differential of 37.60 per cent. Consumption of pulses was analysed between 2004 and 12 and it was found that there was a general increase in pulse consumption and states like Andhra Pradesh, Odisha, Tamil Nadu which had pulse consumption increase by 12 per cent, 24 per cent and 10 per cent respectively. To systematically investigate the factors that impact Monthly Per Capita Expenditure (MPCE) on food within the major Indian states, a multiple linear regression model was fitted. MPCE on food was designated as the dependent variable, representing the primary measure of household spending on food items. Independent variables were carefully chosen to capture a broad spectrum of socioeconomic, demographic, and regional factors that influence food consumption patterns. Key variables included milk availability per day, literacy rate, expenditure on non-food items, household size, relative per capita income, and time, each hypothesized to affect food expenditure based on prior literature and observed patterns within India’s socio-economic landscape. Statistically, MPCE on food is influenced by the changing time as the dummy variable for time indicated substantial increases in MPCE for the years 2011-12 and 2022 23, with coefficients of 703.93 and 2324.29, respectively, both statistically significant at 10% level of significance. Milk availability per day positively influenced MPCE at 1 per cent level of significance. Literacy rate also showed a positive effect at 5 per cent level of significance. Expenditure on non-food items and eggs were both significant at 1 per cent level of significance. However, household size and relative per capita income were not statistically significant at conventional levels. A detailed analysis of Gini coefficients uncovers substantial fluctuations in food expenditure inequality across different time periods and sectors within India. For milk, the highest inequality (G= 0.58) was observed in urban Chhattisgarh during 2011-12, while the lowest (G= 0.19) was recorded in Bihar for the year 2004-05. Edible oil expenditure inequality is highest (G= 0.255) in urban Jharkhand in 2009-10 and lowest in rural Karnataka (G=0.06) in 2004-05. In the context of eggs and meat consumption, rural Andhra Pradesh in 2004-05 (G= 0.47) had the highest inequality (G=0.513), contrasting sharply with urban Gujarat, which had the lowest inequality (G=0.06) in the same year. The highest level of inequality for vegetable expenditures is noted in urban Kerala (G= 0.25) in 2004-05, with rural Gujarat in 2011-12 having the lowest (G=0.12). Fresh fruit expenditure inequality is most significant in urban Jharkhand in 2009-10 (G= 0.577), while the lowest Gini values (G=0.18) was recorded in urban Tamil Nadu in 2004-05. In case of spice expenditures, the highest inequality (G=0.22) was recorded in rural Jharkhand in 2009-10, whereas urban Tamil Nadu in 2011-12 recorded the lowest (G=0.07). Lastly, in the category of beverages, urban Rajasthan in 2011-12 experiences the highest inequality (G=0.514), surpassing the national average, while rural Rajasthan in 2011-12 shows the lowest (G= 0.10). In an in-depth analysis of food expenditure diversity across Indian states, the Herfindahl Index was applied to measure concentration levels for ten fractile classes, focusing on trends from 2004-05 to 2011-12. Findings showed variations in concentration levels by state, expenditure class, and urban-rural divide. Rural Chhattisgarh in 2004-05 showed the highest concentration between the 1st and 9th fractile class. Most of the states by 2011-12 had achieved more diversity in their food expenditure. At the national level concentration was observed mostly in rural 2004-05 for the lower fractile classes. Rice consumption in rural areas has dropped in states where it was once high, while Gujarat and Punjab have experienced an increase. Wheat consumption is decreasing, contributing to a national drop in total cereal consumption, with rice being more popular than wheat (9.60 kg over 6.97kg per person). Rice and wheat are two of the most important crops grown worldwide. Besides their nutritional value and economic importance, they are also sources of bioactive substances, such as phenolic compounds, which can diminish oxidative stress. Pulse consumption between the states showed an upward trend, making up more than 10 percent of the protein diet in the country overall, and in some states as much as 14 percent, pulses remain a sizable contributor to the protein intake of Indian households. Although the share of food expenditure has decreased in 2022-23, households are spending their income on higher value foods like milk, eggs, vegetables and fruits as of 2023. Analyses using the Gini and Herfindahl Index showed significant disparities and concentration patterns, particularly in urban regions of Chhattisgarh, Jharkhand, Odisha while other states show a fluctuating pattern. To address the inequality in food expenditure the government should support agricultural diversity, expand food subsidies, diversify the PDS to include nutrient-rich items, promote affordable local alternatives and improve supply chain


Agricultural Economics
Food consumption
Indian states
India

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