A new report has come about the food habits of Indians, which states that there has been a decline in the expenditure on home food. The report states that the average household expenditure has decreased and for the first time since 1947, the average household expenditure has fallen by less than half. This information has been given in a report of the Prime Minister’s Economic Advisory Council (EAC-PM). It also said that a big change has been seen in the consumption of packed food in the country and the share of packed food has increased.
According to the report titled ‘Changes in India’s Food Consumption and Policy Implications: A Comprehensive Analysis of Household Consumption Expenditure Survey 2022-23 and 2011-12’, the share of total household expenditure on food has decreased significantly in rural and urban areas of all states and union territories. It said, ‘This is the first time in modern India (after independence) that the average household expenditure on food is less than half of the total monthly expenditure of families and this is a significant progress.’
The report is a comprehensive analysis of the comparison between the Household Consumption Expenditure Survey 2022-23 and 2011-12. It says, ‘Overall, there has been a significant increase in the average monthly per capita expenditure of households in rural and urban areas across all states and union territories.’ For example, in rural areas, West Bengal has seen a 151 per cent increase in consumption expenditure in the period between 2011-12 and 2022-23, while Tamil Nadu recorded a growth of about 214 per cent. Sikkim has seen a massive 394 per cent increase in consumption expenditure.
According to the report, overall it was found that the growth in rural families is more than that of urban families. In the case of rural families, the increase in consumption is 164 percent. Whereas, in the case of urban families it is 146 percent. It has been said that the share of expenditure on grains under food items has declined significantly in rural and urban areas. However, this decline is more in the bottom 20 percent families in rural and urban areas.
The report said, ‘It is quite likely that the reason for this trend is the government’s food security policies. This reflects the impact of the policy. Under this, free food grains are being provided to a large number of beneficiaries in all the states of the country…’ It suggested that agricultural policies would have to be formulated beyond grains, whose consumption is declining in all sections of the society. Also, supportive policies like MSP (minimum support price) related to grain procurement will have limited impact on the welfare of farmers.
According to the report, the share of household expenditure on served and packaged processed food saw a significant increase. This increase in expenditure has been seen across all sectors and consumption segments. It said, ‘This increase is across all segments, but is significantly higher in the top 20 per cent of households in the country and in urban areas.’ The report said that the increasing consumption of processed and packaged food will likely affect health outcomes as well. It also opined that more research is needed to understand the nutritional implications of the increasing consumption of packaged foods.