A working paper published by the Prime Minister’s Economic Advisory Council said that for the first time since 1947, the average household expenditure on food in India has fallen to less than half. This working paper titled ‘Changes in India’s Food Consumption and Policy Implications: A Comprehensive Analysis of Household Consumption Expenditure Survey 2022-23 and 2011-12’ analyzes the changes taking place in India’s food consumption pattern.
Economic Advisory Council to the Prime Minister (EAC-PM)
- It is an non-constitutional, non-statutory, independent body constituted to give advice on economic and related issues to the Government of India, specifically to the Prime Minister.
- The council serves to highlight key economic issues to the government of India from a neutral viewpoint.
- It advises the Prime Minister on economic issues like inflation, microfinance, and industrial output.
- For administrative, logistic, planning and budgeting purposes, the NITI Aayog serves as the Nodal Agency for the EAC-PM.
Periodic Reports
- Annual Economic Outlook.
- Review of the Economy.
Key Findings of the Report
- The share of total household expenditure on food has declined substantially in rural and urban areas across all states and UTs.
- This is the first time in modern India that the average household spends less than half of its total monthly budget on food.
- The share of spending on cereals has significantly dropped in both rural and urban areas, with the decrease being most noticeable among the poorest 20% of households.
- The sharp drop in spending on cereals has enabled families to diversify their diets, leading to more spending on milk, fruits, and eggs, fish, and meat.
- The rise in dietary diversity, especially among the poorest 20%, shows that better infrastructure, transport, and storage have made fresh fruits, eggs, fish, meat, and dairy more accessible and affordable. This is a positive sign of inclusive growth in the country over the past decade.
- The average daily intake of micronutrients, such as iron and zinc, has declined from 2011-12 to 2022-23, particularly from cereals.
- However, improved dietary diversity, especially among the poorest 20%, has been observed due to better access to a variety of foods.
- This trend likely reflects the Indian government’s effective food security policies, which provide free food grains to millions of beneficiaries, particularly targeting the most vulnerable populations.
Changing Food Consumption Patterns Imply for Various Policies
- Implications for Agricultural Policy and Food Security: The move from cereals to more fruits, dairy, eggs, fish, and meat in diets calls for changes in agricultural policy, including increased support for these foods.
- This shift also questions the future need for price support mechanisms like the Minimum Support Price (MSP), which mainly focus on cereals.
- Impact on Welfare Policies: Welfare programs like the Pradhan Mantri Garib Kalyan Yojana (PMGKY), which offer free food grains, have acted as a fiscal boost.
- By lowering cereal costs, these programs have allowed households, especially the bottom 50%, to spend more on a varied diet, improving dietary diversity.
- Nutrition and Micronutrient Policy: The findings stress the need for promoting dietary diversity in nutrition policy.
- While fortifying cereals to increase iron intake has had limited success in tackling anaemia, focusing on a varied diet might be more effective. This includes better consumer education and improved access to diverse foods.
- Targeted Nutritional Interventions: The large differences in micronutrient intake and dietary diversity across various income groups and states highlight the need for targeted interventions.
- Even among wealthier groups, many people have insufficient iron intake and dietary variety, increasing their risk of anemia. Nutrition programs need to be customized to meet the specific needs of these groups for better results.