Volume : IV, Issue : X, October - 2014

High Valued Animal Products Consumption Pattern in Rural and Urban India

Pradeepa Babu B N, Dr. Mahesha. M.

Abstract :

This paper analyzes growth in food expenditure, state wise comparison, percentage change in consumption, regression, correlation and income elasticity of demand for high valued animal products. It also analyses different economic class (decile) individual’s preferences and consumption pattern of animal products (fluid milk, baby food, milk powder, ghee, butter, egg, chicken, fish prawn and meat) in rural and urban India by using national sample survey data for the year 2009–10. According to results, as individual’s income increases, animal products consumption expenditure, as also share of the animal products consumption in total food expenditure increases. The study revealed that Indian consumer’s food expenditure has more than doubled (109 percent) in a decade and continue to increase consumption of animal products, but the consumption patterns have changed. There has been a rise in the demand for animal products in India. Increases in income received by higher–income individuals do increase their animal product consumption and expenditures, but animal product consumption patterns for lower and higher income individuals in rural and urban areas are highly different. Response to changes in income is higher for dairy products, both in urban (16 percent) and rural (13 percent) India which indicates that increasing income increases dairy products (specially, fluid milk) consumption share more than other items. However, the shares for poultry and aquatic products consumption will increase substantially for higher income groups. As a consequence, the expenditure share will be gradually increasing as incomes grow and diet preferences change in both urban and rural individuals. There is a strong link between food expenditures and income. In general, analysis of data confirms Engels law. Engels law states that, as income increases, the share of individual’s budget spent on necessities, such as food grains, will decrease. However, it also suggests that the actual amount spent on high valued food products like milk, chicken, fish and egg may increase because individuals may alter the composition of their food bundle as their income rises. Information in this section also examines differences in animal food expenditure by different income group. Across the sample for food expenditure averages Rs 294 to Rs 1156 and Rs 370 to Rs 1845 from the lowest to highest income decile in rural and urban India respectively

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Pradeepa Babu B N, Dr.Mahesha.M. High Valued Animal Products Consumption Pattern in Rural and Urban India Indian Journal of Applied Research, Vol.4, Issue : 10 October 2014

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