According to a report by the State Bank of India (SBI), the consumption of cereals and pulses among Indian households has fallen by over 5 per cent,
This decline has been observed in both urban and rural areas, highlighting significant shifts in the country’s dietary and spending habits.
The report points to a broader trend in Indian household expenditure, which has seen a marked shift from food to non-food items over the past 12 years. While food remains an essential part of household budgets, the proportion spent on food items has dropped considerably.
In 2011-12, food expenditure accounted for 52.9 per cent of total household spending in rural areas. By 2023-24, this share had decreased to 47.04 per cent, representing a 5.86 per cent decline. Urban households experienced a smaller but still notable drop, with the share of food expenditure falling from 42.62 per cent to 39.68 per cent, a reduction of 2.94 per cent.
Meanwhile, non-food items have gained an increasing share of household budgets. In rural areas, expenditure on non-food items surged by 5.86 per cent, rising from 47.1 per cent of total spending in 2011-12 to 52.96 per cent in 2023-24. Similarly, urban areas saw a rise in non-food spending, which increased by 2.94 per cent, from 57.38 per cent to 60.32 per cent of total household budgets.
One of the key factors driving this shift is increased spending on toiletries. The success of the Swachh Bharat Abhiyan, a nationwide cleanliness campaign, and growing awareness about hygiene have significantly contributed to the rise in demand for personal care products. This growing interest in hygiene-related goods has been a major part of the non-food expenditure increase.
The report also highlights a decline in household expenditure on taxes and cess, largely due to the rationalisation of Goods and Services Tax (GST) rates. This reform has reduced the tax burden on various goods and services, leading to lower costs for consumers.
Similarly, expenditure on clothing and footwear has dropped due to the lower GST rates compared to the previous taxation system.
This shift from food to non-food expenditure signals changes in India’s socio-economic landscape. As incomes rise and lifestyles evolve, Indian households are spending more on hygiene, technology, and other non-food essentials. This evolving pattern reflects changing priorities as consumers invest in products that enhance their living standards, health, and overall well-being.
The decline in food consumption, particularly cereals and pulses, raises questions about dietary patterns and the affordability of essential food items.
While this trend is more pronounced in rural areas, where the economic pressures are higher, the change in urban areas suggests a broader shift in consumer habits across the country.
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