Expenditure on food declines in India since 1947

Average household spending on food in India has dropped to less than half of overall monthly expenses for the first time since independence, indicating significant progress

The decline in food expenditure is observed across rural and urban areas and all states and union territories, according to a government paper by the Economic Advisory Council to the Prime Minister

Within food items, the share of expenditure on cereals has significantly decreased, particularly for the bottom 20% of households, reflecting the effectiveness of government food security policies

Programs like PMGKAY, which provide free food grains to approximately 800 million people, have enabled households to diversify their diets, increasing spending on milk, fresh fruits, and animal-source foods

The shift in food consumption patterns has implications for agriculture policies, highlighting the need for increased production and accessibility of diverse food items like fruits, vegetables, and animal-source foods

The changing consumption habits will also impact the calculation of the Consumer Price Index (CPI) in the future

Support policies like Minimum Support Price (MSP), which focus on cereal procurement, may have limited impact on farmer welfare as cereal consumption declines

There has been a noticeable increase in household spending on served and packaged processed foods, particularly among the top 20% of households and urban areas

While the food processing sector is a significant job creator, the rise in processed food consumption may negatively affect health outcomes, necessitating policies to regulate nutritional content and promote healthier alternatives