• The  Household Consumption Expenditure Survey (HCES) by the National Sample Survey Office (NSSO) compiles the average Monthly Per Capita Consumption Expenditure (MPCE), an indicator of living standards.

• MPCE is defined as the total monthly consumption value of household goods and services divided by household size.

• Expenditure Patterns on food items are as follows: 

1. Rural: Constitutes 46% of MPCE, of which Beverages, refreshments, and processed foods (9.62%), Milk and milk products (8.33%), Vegetables (5.38%), and Cereals (4.91%).

2. Urban: Constitutes 39% of MPCE, of which Beverages, refreshments, and processed foods (10.64%), Milk and milk products (7.22%), and Fruits and vegetables (3.8%).

• State-wise variations in food and cereal expenditure: 

1. Food Expenditure (as % of MPCE)

• Rural: 39% in Kerala to 54% in Bihar and Assam.

• Urban: 35% in Telangana to 47% in Assam and Bihar.

2. Cereal Expenditure (as % of MPCE)

• Rural: 3% in Haryana, Kerala, and Punjab, and 7% in Bihar, Jharkhand, and West Bengal.

• Urban: 3% in Haryana, Karnataka, Kerala, Punjab, and Tamil Nadu, and 6% in Bihar and Jharkhand.

• The key takeaways include the following:

1. The share of expenditure on food has gradually declined in rural and urban households compared with previous surveys.

2. Urban households spend more on food in absolute terms, constituting a smaller percentage of their total expenditure.

3. Beverages, refreshments, and processed foods receive the highest food budget allocation in both rural and urban areas.

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