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Conducted by: National Statistical Office (NSO). Frequency: Every five years. Objective: To estimate household Monthly Per Capita Consumption Expenditure (MPCE) across rural and urban sectors, states/UTs, and socio-economic groups |
Survey Highlights:
- MPCE Increase: Urban households’ MPCE rose by 33.5% since 2011-12 to ₹3,510; Rural India’s MPCE saw a 40.42% increase to ₹2,008.
- Food Expenditure: Rural households’ food spending dropped from 52.9% to 46.4%; Urban households’ food spending decreased from 42.6% to 39.2%.
- Impact: This may lead to changes in the weightage of food prices in retail inflation calculations.
- State-wise MPCE: Highest in Sikkim (Rural: ₹7,731; Urban: ₹12,105) and lowest in Chhattisgarh (Rural: ₹2,466; Urban: ₹4,483).
Key Patterns Observed:
- Shift in Food Spending: The Survey indicates a preference shift from food grains and sugar to protein-rich and micronutrient-rich animal and horticulture products.
- Reduced Cereal and Pulse Spending: Notable decline in spending on cereals and pulses across rural and urban areas.
- Increased Milk Spending: Milk spending now surpasses combined expenditure on cereals and pulses, highlighting a dietary shift towards milk.
- Higher Fruits and Vegetables Spending: For the first time, spending on fruits and vegetables exceeded that on food grains, with individual spending on vegetables and fruits surpassing cereals and pulses respectively.
- Preference for Animal Proteins: Elevated spending on eggs, fish, and meat indicates a strong preference for animal over plant proteins.
- Growth in Processed Food Spending: A significant increase in the expenditure on processed foods, beverages, and ready meals.
- Engel Curve Observation: The spending patterns reflect the Engel Curve hypothesis, showing a move towards “superior” food items (like dairy, meats, and produce) as incomes rise, away from “inferior” staples (such as cereals and sugar).
Why in News:
- Recently, the Household Consumption Expenditure Survey 2022-23 was released after a total gap of 11 years.
- Before this, the results of the most recent survey, conducted in 2017-18 following the demonetization of high-value currency notes and the introduction of the Goods and Services Tax (GST), were never released after the government cited “data quality” issues.
