Inequality in Food Expenditure in India and the Contributing Factors

Abstract

One of the most important implications of nutrition transition is the change in food expenditure along with the changes in food consumption pattern. While inequalities in income have been extensively documented, relatively less is known about the inequality in food expenditure in India. In the Indian context, the diversity in agriculture offers enough scope to examine expenditure inequality across regions. The study examined the inequality in food expenditure in India and the contributing factors using household level expenditure data from the National Sample Survey Organisation. The study first examined the pattern of food expenditure and then the factors associated with the inequality in food expenditure. The study identified that inequality in food expenditure by place of residence, geographic and agro-climatic regions has increased over time. Moreover, type of occupation and household size had significant contribution to inequality in food expenditure. The findings from Gini decomposition suggests that with the increase in food expenditure inequality, share of cereals in total food expenditure increased for the poor; and share of milk products, vegetables and processed food increased for the rich. The geographic variations within the country and the share of each expenditure category within state will also help in explaining the food expenditure inequality in India.