Changes in Cunsumption Pattern in India After Globalisation

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TRENDS AND PATTERN OF CONSUMPTION OF
VALUE ADDED FOODS IN INDIA

Michel Morisset and Pramod Kumar
The economic growth, changes in tastes and preferences and urbanization has resulted in changing consumption pattern away from traditional food commodities to processed and high value commodities (Murty, 2000; Meenakshi, 1996; Rao, 2000). The consumption of food is falling because of shift in consumption away from cereals to high calorie commodities such as meat, milk, fish etc, in other words from low value to high value commodities (Kumar and Kumar, 2004; Meenakshi, 1996). In rural areas the shift in consumption pattern is more in those regions that are experiencing greater improvement in infrastructure (Rao, 2000). The changing consumption pattern has resulted in decline in per capita household demand for foodgrains (Radhakrishna and Ravi, 1992; Kumar and Mathur, 1996; Murty, 1999; Kumar and Kumar, 2003). However, there has been little attempt to assess the changes in consumption pattern by value added food products. The analysis of food consumption in Urban India is of greater interest. It permits not only to understand the food consumption pattern of an important and growing population but also reveals the future of consumption habits in India. It is considered that the changes in consumption are more likely to happen in urban than in rural India. Even more, it is among the urban population that the most important concentration of wealthy people are found and they are considered the most auspicious to introduce the new trends. An understanding of the changing consumption pattern according to the extent of value addition would have implications not only for foodgrains demand projection but also for development policies. It is therefore, pertinent to understand: what is the extent of shift? Has the consumption of value added products really increased, if yes, then to what extent? Is this shift observable across all the income groups of the populationand specially in urban India? To find solution to these, this study is undertaken with following specific objectives: 1)To study the food consumption pattern by expenditure groups for urban and rural India and across states for urban India; 2) To classify the food items in accordance with the level of processing and to analyse the trend and pattern of consumption of processed food; and 3) To analyze the consumption of the highest income group of urban households as symptomatic of future consumption pattern Data and Methodology

The Data
The household level data on consumption of food available from 55th (1999-2000) and the 61st (2004-05) rounds of the National Sample Surveys Organisation (NSSO) is used for analysis. The ten states, with important urban population, were taken up for disaggregated regional level analysis. The household level data is classified into Monthly Per Capita Expenditure (MPCE) groups. The MPCE groups are expressed as percentiles as is done in the NSSO survey reports No. 508 and 509. These groups were numbered from 1 to 12, starting from the lowest to the highest MPCE group. Among these, the four MPCE groups (two each from the beginning and end of the expenditure continuum), each account for 5 per cent of the household. The remaining 80 per cent of the sample households were classified into 8 equal percentile groups, thus making a total of 12 groupings. These groups facilitate the comparison of the results of the two rounds of survey. The disaggregated household level data were used to analyze the consumption by extent of value added food products. The expenditures for the 141 food items by all MPCE groups for both urban and rural India were calculated1. A grid was evolved to classify the food items according to the level of processing, which is: 1.Primary products: These food products are consumed as is produced without processing. The activities like grading, sorting, washing, packing are not considered as processing, therefore, the food...
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