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The share of food items in total average household expenditure fell below half for the first time in modern India

by Sandhya Hirani
September 6, 2024
The share of food items in total average household expenditure fell below half for the first time in modern India

New Delhi, Sep 6 (IANS) India’s consumption pattern has seen a major change in the recent past. The share of food items in total household expenditure has seen a significant decline in both rural and urban areas across all states and union territories, a government note revealed.

This is the first time in the history of modern India (independent India) “when the share of food items in total average monthly household expenditure has declined to less than half,” said a note titled ‘Changes in India’s food consumption and policy implications’ from the Prime Minister’s Economic Advisory Council (EAC).

“In food items too, there has been a decline in expenditure on grains in both urban and rural areas.”

The report further said that there has been a big drop in the expenditure on food items in the total household expenditure of the last 20 percent families in urban and rural areas. This also shows the impact of government schemes. The government is giving free food grains to a large number of people in all the states. The last 20 percent families of the country are getting the biggest benefit of this.

Due to reduced expenditure on grains, families are now able to spend on other food items like milk, milk products, fresh fruits, eggs, fish and meat.

Under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), the government is providing free food grains to 80 crore poor people. The poor people are getting the most benefit from this.

The note said that the change in the share of food items in total household expenditure has an impact on agricultural policy and the country’s health and nutrition policies. This change in India’s consumption will also have an impact on the way CPI is calculated in the future.

–IANS

ABS/ABM

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