By Paritala Purushotham
Hidden inside a new government report (The Household Consumption Expenditure Survey, on consumption expenditure pattern) is a big public health warning – Indians have been spending the maximum on processed food and beverages, which are responsible for a rise in obesity, diabetes and heart diseases.
The Household Consumption Expenditure Survey, released last week (December 27, 2024) showed that in 2023-24 rural India spent 9.84 per cent of their monthly budget on beverages and processed food. The corresponding number for urban India is 11.09 per cent. Similar trends were seen in 2022-23 as well when rural and urban households spent 9.62 per cent and 10.64 per cent of their monthly expenses on such items respectively. This is for the first time in two decades the monthly budget on consuming food and beverages crossed the 10 per cent mark. The consumption survey reveals the reasons behind the rise in non-communicable diseases in India. Processed food is calorie-dense as it is high in sugar, salt and trans-fat.
The 2023-24 survey was carried out on 2.61 lakh households – 1.54 lakh rural and 1.07 lakh urban. HCES is designed to collect information on consumption and expenditure of households on goods and services. The survey provides data required to assess trends in economic well-being and to determine and update the basket of consumer goods and services and weights used for the calculation of the Consumer Price Index. Data collected in HCES is also used to measure poverty, inequality, and social exclusion. The Monthly Per Capita Consumption Expenditure (MPCE) compiled from HCES is the primary indicator used for most analytical purposes.
The survey shows rural India spends 47 per cent of its monthly expenditure on food, of which nearly 10 per cent is on processed food and beverages, way above fruits (3.85 per cent), vegetables (6.03 per cent), cereals (4.99 per cent) and eggs, fish and meat (4.92 per cent). The trend is similar among the city population that spends over 39 per cent on food, of which 11 per cent is on beverages and processed foods as against fruits (3.87 per cent), vegetables (4.12 per cent), cereals (3.76 per cent) and eggs, fish and meat (3.56 per cent).