For the first time in independent India, the average household expenditure on food is less than half of the overall spending of households indicating significant progress, an Economic Advisory Council to the Prime Minister (EAC-PM) has found. The council carried out a comprehensive survey and analysis of household consumption expenditure in 2022-23 and compared it with 2011-12 data to arrive at interesting insights.
Among the primary observations is the fact that while there has been a considerable increase in households’ average monthly per capita expenditure across rural and urban areas in all states and union territories (UTs), the share of total household expenditure on food has declined substantially. This could be attributed to the effectiveness of government’s food security programmes as part of which free food grains are provided to large numbers of beneficiaries across the country.
The analysis found not only a decline in share of cereals in household expenditure but also observed that this has resulted in increased dietary diversity, with increased spending on milk and milk products, fresh fruits, eggs, and fish and meat. This, the report observed, was especially pronounced among the bottom 20% households. An increase in dietary diversity is linked to better infrastructure and access to a wider variety of foods, the study states.
At the same time, it was also noted that there was an increase in the share of the household expenditure on served and packaged food, specifically among the top 20% of households, particularly in urban areas. While observing that the food processing industry was a creator of jobs, the report also stated the need for research to understand the nutritional implications of growing consumption of packaged processed foods.
It is heartening to note that even as the country is pursuing accelerated growth, the nation’s food security and agriculture-focused policies are intended at ensuring that all citizens have access to quality foods without having to spend a considerable sum on them.
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