Average household spending on food has fallen..., what Economic Advisory Council to the Prime Minister revealed
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A working paper from the Economic Advisory Council to the Prime Minister (EAC-PM) reveals that, for the first time in modern India, average household spending on food has fallen to less than half of total monthly household expenditure. This shift is primarily attributed to the free distribution of wheat and rice under various government schemes.
The paper notes that the share of household expenditure on food has significantly decreased in both rural and urban areas across all states and Union Territories. This marks a notable milestone in post-independence India, reflecting substantial progress.
The analysis highlights that spending on cereals has dropped markedly, particularly among the bottom 20% of households, indicating the effectiveness of government food security policies. As a result, families have been able to diversify their diets, with increased spending on milk and dairy products, fresh fruits, and protein sources such as eggs, fish, and meat.
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