Expenditure on food: After independence, the average household expenditure on food has decreased by more than half, packaged food consumption has become a concern

Expenditure on food: In many states of the country, there has been an increase in the monthly expenditure of rural families compared to urban families. For rural families, it has increased by 164% and for urban families, it has increased by 146%.

After independence, i.e., since 1947, the average household expenditure on food in India has decreased by more than half. According to a report by the Prime Minister’s Economic Advisory Council (EAC-PM), there have been significant changes in the pattern of food consumption in the country. The share of packaged and processed food in household expenditure has increased. According to the analysis of the Household Expenditure Survey (HES) 2022-23 and 2011-12, there has been a significant decrease in the share of household expenditure on food in all states and union territories, while there has been a significant increase in the average monthly expenditure per person of families over the past 10 years. The report states that the increase in monthly expenditure of rural families is higher than that of urban families. For rural families, it is 164% and for urban families, it is 146%.

Increase in expenditure on packaged and processed food

According to the report, there has been an increase in the share of packaged and processed food in household expenditure. This increase has been observed in all regions and consumption categories, but it is more pronounced in the top 20% of families and urban areas. The report states that the increasing consumption of packaged food will also have an impact on health outcomes. In rural areas, the share of packaged and processed food in household expenditure was 5.7% in 2011-12, which increased to 7.3% in 2022-23. In urban areas, the share of packaged and processed food in household expenditure was 6.5% in 2011-12, which increased to 8.2% in 2022-23. The 20% poorest rural people spent 7.2% on packaged food in 2022-23, while in urban areas, they spent 6.9%.

–In 2011-12, the average monthly expenditure of rural Indian families was ₹1430, which increased to ₹3773 in 2022-23, a 164% increase.

–In 2011-12, the average monthly expenditure of urban Indian families was ₹2630, which increased to ₹6459 in 2022-23, a 146% increase.

–In 2011-12, 53% of the expenditure in rural areas was on food, which decreased to 46.5% in 2022-23.

–In 2011-12, 42.7% of the expenditure in urban areas was on food, which decreased to 39.2% in 2022-23.

–For the 20% poorest people, the share of expenditure on food in rural areas decreased from 59.6% to 53.1% over 10 years, while in urban areas, it decreased from 56.4% to 48.2%.

Increase in the average monthly expenditure of families

State Rural Area Increase Urban Area Increase
Rajasthan ₹4,258 165% ₹5,909 142%
Madhya Pradesh ₹3,112 170% ₹4,987 142%
Chhattisgarh ₹2,465 140% ₹4,477 140%
Delhi ₹6,576 138% ₹8,219 143%
Uttar Pradesh ₹3,191 176% ₹5,042 146%
Sikkim ₹7,730 394% ₹12,106 364%
Gujarat ₹3,799 147% ₹6,620 156%
Maharashtra ₹4,010 148% ₹6,652 109%
Chandigarh ₹7,466 184% ₹12,575 275%

(Average monthly expenditure in rupees)