According to a recent survey, the consumption of paan, tobacco, and other intoxicants has seen a notable uptick over the last decade, with individuals allocating a larger share of their income toward these products.
The survey findings reveal a discernible increase in the consumption of paan, tobacco, and various intoxicating substances, highlighting a shift in spending patterns over the past ten years.
In recent years, there has been a noticeable rise in the consumption of paan, tobacco, and other intoxicants, leading individuals to allocate a greater proportion of their income to these products, as indicated by a recent survey.
Released just last week, the Household Consumption Expenditure Survey 2022-23 unveiled a concerning trend: the portion of total household spending allocated to paan, tobacco, and intoxicants has surged in both rural and urban areas.
According to the data, expenditure on these items has risen significantly, reaching 3.79 per cent in rural areas for 2022-23, up from 3.21 per cent in 2011-12.
Similarly, in urban regions, spending on paan, tobacco, and intoxicants has increased from 1.61 per cent in 2011-12 to 2.43 per cent in 2022-23.
Conversely, the proportion of spending on education has experienced a decline, dropping to 5.78 per cent in urban areas for 2022-23 from 6.90 per cent in 2011-12.
In rural areas, this proportion has seen a decline to 3.30 per cent in 2022-23 from 3.49 per cent in 2011-12.
The National Sample Survey Office (NSSO), operating under the Ministry of Statistics and Programme Implementation, conducted the Household Consumption Expenditure Survey (HCES) spanning from August 2022 to July 2023.
This survey, aimed at gauging household consumption expenditure, seeks to measure estimates of each household’s Monthly Per Capita Consumption Expenditure (MPCE) and its distribution across rural and urban sectors, states, Union Territories, and different socio-economic groups.
Furthermore, the survey highlighted an increase in spending on beverages and processed food, reaching 10.64 per cent in urban areas for 2022-23 compared to 8.98 per cent in 2011-12.
In rural regions, this expenditure rose from 7.90 per cent in 2011-12 to 9.62 per cent in 2022-23, indicating a notable shift in consumption patterns.
In urban areas, spending on conveyance has risen from 6.52 per cent in 2011-12 to 8.59 per cent in 2022-23, indicating an increase in transportation expenses.
Similarly, in rural regions, expenditure on conveyance climbed from 4.20 per cent in 2011-12 to 7.55 per cent in 2022-23, reflecting a notable rise in transportation costs.
The study also highlights a significant increase in Monthly Per Capita Consumption Expenditure (MPCE) over the period from 2011-12 to 2022-23.
At current prices (without imputation), the average MPCE more than doubled to ₹6,459 in urban areas for 2022-23 from ₹2,630 in 2011-12.
In rural areas, it surged to ₹3,773 in 2022-23 from ₹1,430 in 2011-12.
Moreover, the average MPCE at 2011-12 prices (without imputation) also experienced an uptick to ₹3,510 in 2022-23 from ₹2,630 in 2011-12 in urban areas.
Similarly, in rural areas, it increased to ₹2,008 from ₹1,430 over the same period, indicating a significant rise in purchasing power.
The survey revealed that the average Monthly Per Capita Consumption Expenditure (MPCE), including imputation, increased to ₹6,521 in 2022-23 from ₹2,630 in 2011-12 in urban areas.
Similarly, in rural areas, it rose to ₹3,860 from ₹1,430 over the same period.
Moreover, the average MPCE at 2011-12 prices, including imputation, increased to ₹3,544 in 2022-23 from ₹2,630 in 2011-12 in urban areas.
In rural areas, this figure increased to ₹2,054 from ₹1,430.
The estimates of MPCE are based on data collected from 2,61,746 households (1,55,014 in rural areas and 1,06,732 in urban areas) across all states and Union Territories.
In the Household Consumption Expenditure Survey (HCES) for 2022-23, the standard practice of imputation for the consumption of out-of-home-grown/home-produced stock, gifts, loans, free collection, and goods received in exchange for goods and services has been maintained. Consequently, MPCE estimates have been derived accordingly.