A Study of the Role of Income, Consumption Patterns and Time in Shaping Food Expenditure in India

Aims: we sought to determine the key factors affecting per capita monthly expenditure on food across Indian states over time.

Study Design: This is a quantitative, cross-sectional study that uses existing data from National Sample Survey (NSS), 61st, 66th and 68th rounds.

Methodology: We compiled datasets on 10 independent variables believed to influence monthly per capita expenditure (MPCE) across 17 Indian states over three distinct time periods (2004-05, 2009-10, 2011-12). These variables include household size, dependency ratio, milk availability, Gross State Domestic Product (GSDP), literacy rate, a time dummy variable, poverty rate, and consumption patterns of cereals, pulses, and non-vegetarian food.

Results: The analysis of 68 observations identified key factors influencing household food consumption expenditure. milk consumption showed a positive correlation with expenditure, yielding a coefficient of 1.106 (p =0.001) as did literacy rate (coefficient = 10.018, p = 0.045), expenditure on non-food items (coefficient = 0.086, p = 0.001), and expenditure share on eggs and meat (coefficient = 29.011, p = 0.001). Time dummy variables indicated rising expenditures over time, with coefficients of 517.76 (p = 0.001) for 2009-10, 703.93 (p = 0.001) for 2011-12, and 2324.29 (p = 0.001) for 2022-23. Overall, the model accounted for 90.9% of the variance in food consumption expenditure.

Conclusion: Higher per capita milk availability leads to increased overall food spending, while the time factor indicates a trend of rising expenditures, likely linked to changing consumption patterns and incomes. literacy rate also positively affect food expenditure choices The analysis also shows that spending on protein-rich foods, such as eggs and meat, positively affects overall food expenditure.