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Share of food in consumer expenditure continues to dip: NSSO

24-November-2005
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Share of food in consumer expenditure continues to dip: NSSO

The share of food items as part of total consumer expenditure continues to decline, according to the latest findings of the National Sample Survey Organisation. The latest figures pertaining to the 60th round of the National Sample Survey released today reveal that the trend continues both in rural and urban households.

During the survey period January-June 2004, the share of food in total consumer expenditure was 54 per cent in the rural areas, compared to 64 per cent in 1987-88, and 42 per cent in the urban areas, against 56 per cent during 1987-88.

The share of cereals was 18 per cent in rural India (26 per cent in 1987-88), and for urban areas, the corresponding figures were 10 per cent and 15 per cent.

For the rural population, the average monthly per capita consumer expenditure (MPCE) was Rs 565, out of which non-food expenditure stood at Rs 260. It included fuel and light, clothing and footwear.

For the urban population, the average MPCE stood at Rs 1,060 out of which Rs 619 accounted for non-food expenditure.

The survey finds that in the rural sector, Jharkhand, Orissa, Madhya Pradesh and Bihar had an MPCE of less than Rs 450. Kerala had the highest (Rs 990), followed by Punjab (Rs 947).

In the urban sector, Bihar and Madhya Pradesh had an MPCE of less than Rs 800, while Kerala had the highest MPCE of Rs 1,372, followed by Maharashtra with Rs 1,259.

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