Rural India spent maximum of food expenditure on processed food, beverages in 2022-23: Survey

In 2022-23, in rural India, food accounted for about 46 percent of the value of the average rural Indian households’ consumption.

The rural sector spends most on beverages and processed food spending 9.6 percent of its expenditure on food items, followed by 8.3 percent on milk and milk products in 2022-23, Ministry of Statistics and Program Implementation survey released on June 7 showed.

In 2022-23, in rural India, food accounted for about 46 percent of the value of the average rural Indian households’ consumption. Among other food items, the contribution of vegetables is at 5.38 percent in rural India. The contribution of cereals and cereal substitutes in the expenditure has been about 4.91 percent, the survey on Household Consumption Expenditure : 2022-23  showed.

In urban India, the contribution of food in Monthly Per Capita Consumer Expenditure (MPCE) in 2022-23 has been about 39 percent and similar to rural India, the contribution of beverages, refreshments and processed food has been the highest at 10.64 percent in this expenditure followed by milk and milk products at 7.22 percent and fruits and vegetables, each having a share of 3.8 percent.

Expenditure on food includes the value of self-consumed home produce, calculated at ex farm prices. It also includes the value of food collected free, for example, from forests, imputed at prevailing local retail prices.

The share of food in total consumption expenditure of rural households varies from 39 percent in Kerala to 54 percent in Bihar and Assam. For the urban sector, the share of food in consumption expenditure varies from 35 percent in Telangana to 47 percent in Assam and Bihar.

In rural sector, the share of the beverages and processed food in total food consumption has been maximum for almost all the major states except for Gujarat, Haryana, Madhya Pradesh, Punjab, Rajasthan and Uttar Pradesh where maximum share has been for milk and milk products and for Kerala with the maximum share in egg, fish and meat.

In the urban sector, the share of the beverages and processed food has been maximum in total food expenditure for almost all major states except for Haryana, Punjab, Rajasthan and Uttar Pradesh where maximum share of consumption has been for milk and milk products.