Household Spending on Food Falls Below 50% for the First Time Since 1947: Report

Household Spending on Food Falls Below 50% for the First Time Since 1947: Report

Sub : Eco

Sec: National Income

Context: As per a  working paper by the Economic Advisory Council to the Prime Minister (EAC-PM) has revealed the average household spending on food across the country in both rural and urban areas has reduced to less than half for the first time since 1947

Details:

• The paper analyses household consumption expenditure surveys conducted in 2022-23 and 2011-12 and has revealed that significant changes have taken place in India’s food consumption pattern
• According to the paper, the consumption expenditure growth for rural households (164%) was higher than that for urban households (146%).
• Within food items, the share of expenditure on cereal declined significantly across rural and urban areas. This decline was more pronounced for the bottom 20% of both urban and rural households, the paper said.

Significance:

This reflects the effectiveness of the government’s food security policies, which provide free food grains to large numbers of beneficiaries across all states of the country, with a particular focus on the vulnerable bottom 20% of households.