Household Consumption of Various Goods and Services in India,

Report No. 509(61/1.0/2) Household Consumption of Various Goods and Services in India, 2004-05 NSS 61 st Round (July 2004 - June 2005) Vol. I: Major States and All-India National Sample Survey Organisation Ministry of Statistics and Programme Implementation Government of India April 2007

Preface The National Sample Survey Organisation (NSSO) conducts socio-economic surveys covering various subjects on regular basis. Subjects are selected keeping in view their importance. As part of the NSS 61 st round during the period July 2004 June 2005, the Household Consumer Expenditure survey was conducted on large sample basis and this was the seventh quinquennial survey on the subject. The report is one of a series of seven reports to be brought out on the basis of the data collected through the survey. Report No.508 (the first of the series) gave the break-up of per capita consumption expenditure in 2004-05 by 32 broad groups (14 food groups and 18 non-food groups) of items of consumption. The present report studies consumption patterns in greater detail, using the item classification adopted in the household consumer expenditure schedule. Monthly per capita expenditure estimates are presented here for all items of consumption for which data was separately recorded in the schedule, along with the estimated proportions of consuming each item during the last 30 days. All estimates are provided separately for rural and urban sectors of each State and Union Territory. For food, fuel, clothing and footwear, estimates of per capita quantity of consumption are also provided. Chapter One of the report serves as the introduction. Chapter Two explains the concepts and definitions used in the survey. Chapter Three gives the main findings of the survey. Detailed tables at the State/UT and all-india level are given in Appendix A, while the sample design and the estimation procedure are explained in Appendix B. A facsimile of the schedule used for data collection is given as Appendix C. The report has been divided into two volumes. Volume I is the main report and includes the text portion as well as Appendices B and C, and part of the Appendix A relating to the major States. The term major States here refers to the 17 States of India which had a population of 20 million or more according to the Census of 2001. Volume II contains the remaining part of Appendix A relating to the minor States and Union Territories. Development of sampling design and survey instruments, and preparation of the report, was undertaken by the Survey Design and Research Division of the NSSO. The field work was handled by the Field Operations Division and the data processing and table generation by the Data Processing Division. The Coordination and Publication Division was responsible for overall coordination of all activities of NSSO, including the data dissemination and release of the reports. The Chairman and Members of the then Governing Council of NSSO, along with the Chairman and Members of the Working Group set up for this round, provided the technical directions and guidance at every stage of the survey. I am grateful to all of them. The report, I hope, will be useful to planners, policy makers and researchers. Comments and suggestions are most welcome. New Delhi April 2007 P.K.Ray Director General & Chief Executive Officer National Sample Survey Organisation

Highlights A sample of 79298 rural and 45346 urban spread over the entire country was surveyed in the Consumer Expenditure Survey of the 61 st round of NSS (the seventh of the quinquennial series), carried out in 2004-05. CONSUMPTION IN PHYSICAL TERMS AND INCREASE SINCE 1993-94 Between 1993-94 and 2004-05, consumption of jowar and its products has dropped by over 40% in both rural and urban areas. For the commonly consumed pulses arhar, moong, masur and urad, the percentage of reporting consumption has risen by 1 to 4 percentage points between 1993-94 and 2004-05. For split gram the percentage has risen by 8 points in both rural and urban areas. The percentage of reporting milk consumption has grown in both rural and urban areas between 1993-94 and 2004-05 by 5 percentage points 66% to 71% in rural areas and 80% to 85% in urban areas. Per capita egg consumption in rural India about 1 egg per month in 2004-05 has increased by nearly 60% since 1993-94. The percentage of rural consuming any eggs in a 30-day period has risen from 22% to 33%. Per capita consumption of goat meat and mutton has definitely declined, more so in urban India, and the proportion of consuming such meat in a 30-day period has declined too (by 2-3 percentage points between 1993-94 and 2004-05). The proportion of consuming chicken during a 30-day period has, between 1993-94 and 2004-05, increased three-fold in urban areas and two and a half times in rural areas, and the increase in per capita consumption levels appears to be of the same order. Per capita consumption of chicken has outstripped that of goat meat and mutton not only in urban but also in rural India. Per capita consumption of edible oil has risen over the eleven years following 1993-94 by as much as 30% in rural India and about 18% in urban India. In both rural and urban India, per capita consumption of oil other than groundnut oil, mustard oil, vanaspati and coconut oil has more than doubled. Such oil would include sunflower oil, soyabean oil, other vegetable oil and rice bran oil. The percentage of urban using groundnut oil dropped in 2004-05 to 21%, one-half of what it was in 1993-94 (40%). Among rural the percentage in 2004-05 fell to 14% from a 1993-94 level of 30%. The percentage of urban consuming apples in a 30-day period remained, in 2004-05 as in 1993-94, nearly three times the corresponding percentage for rural. The prevalence of consumption of groundnuts, as measured by the proportion of consuming them in a 30-day period, has gone up by about 50% in both rural and urban areas between 1993-94 and 2004-05. While per capita consumption of brinjal (eggplant) has declined distinctly by about 70 gm per month in both sectors per capita consumption of onions has risen by 100 gm per month in the rural and more than 150 gm in the urban sector between 1993-94 and 2004-05. NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

ii Highlights The percentage of consuming a particular vegetable in a 30-day period has grown in the eleven years after 1993-94 by 3-6 percentage points for potatoes, onions and brinjal, 8-10 percentage points for cabbages and nearly 12 percentage points for cauliflowers and tomatoes in urban areas, and 15 percentage points for tomatoes in rural areas. The proportion of having at least one bidi smoker has declined by 26% in rural India and 35% in urban India between 1993-94 and 2004-05. Per capita consumption of cigarettes in urban areas has dropped by 30% in the eleven years since 1993-94. The proportion of using LPG doubled in urban India from 29.5% in 1993-94 to 59% in 2004-05, and increased five- or six-fold in rural India from about 2% to 11.7%. Households using electricity formed about 54% of rural in 2004-05 compared to 34% in 1993-94. In urban areas they formed 90% of in 2004-05 compared to 74% in 1993-94. Between 1993-94 and 2004-05, the proportion of purchasing readymade garments during a 30-day period increased in both rural and urban areas by about 75%, while the proportion purchasing hosiery articles showed a three-fold increase. CONSUMPTION IN RUPEES AND INCREASE AT CURRENT PRICES SINCE 1999-2000 The share in educational expenditure of tuition and other fees, its major component, is on the rise. Between 1999-2000 and 2004-05, this share rose in urban India from 45% to 57% and, from 29% in rural India, reached a level of 44%. Medicine (non-institutional) formed as much as 63-64% of total medical expenditure in rural India and 56-57% in urban India in both 1999-2000 and 2004-05. While the share of institutional medical expenditure (incurred in connection with hospitalisation) in total medical expenditure by in urban India (28%) was a little higher than in rural India, the gap between the two has narrowed in 2004-05, the share for rural India having risen from 23% to 26%. Telephone expenditure per person per month, at current prices, has soared to six times its level in 1999-2000 (increase of 515%) in rural India and to 3.3 times its level (increase of 230%) in urban India. Total consumer expenditure levels per capita rose, by comparison, by 19% in rural India and by 29% in urban India. The proportion of incurring expenditure on telephone has jumped from 5% to 32% for rural areas and from 25% to 63% for urban areas. Per capita expenditure on tuition and other educational fees has, at current prices, risen to nearly 3 times its 1999-2000 level (increase of 188%) in rural areas, and in urban areas reached two and a half times its earlier level. Tailoring expenses per person have registered a fall of 26% (at current prices) in the rural sector and 33% in the urban sector between 1999-2000 and 2004-05. At the same time, per capita expenditure on readymade garments has risen in both sectors by about 63% at current prices between these two years. POSSESSION OF DURABLE GOODS The percentage of with TV sets increased since 1999-2000 by about 7 percentage points in both sectors to stand at 26% in the rural sector and 66% in the urban sector in 2004-05. NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

Highlights iii Electric fans were found in 38% of rural and 82% of urban in 2004-05, showing an increase of 12-13 percentage points in each sector since 1999-2000. Refrigerators were used by 32% of urban and 4% of rural in 2004-05. In 1993-94, eleven years earlier, they had been found in 12% of urban and 1% of rural. Motorcycles or scooters were possessed by over one-fourth of urban and 7.7% of rural in 2004-05. In 1993-94, they were possessed by less than one-eighth of urban and only 2% of rural. About 4.6% urban owned motor cars in 2004-05 compared to 1.2% in 1993-94. Even in rural areas 0.8% owned motor cars, compared to 0.2% in 1993-94. NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

Contents Vol. I Highlights. Chapter One Introduction 1 Chapter Two Concepts and Definitions 5 Chapter Three Summary of Findings 11 Appendix A Detailed Tables*. A-1 A-411 Appendix B Sample Design and Estimation Procedure. B-1 B-8 Appendix C Schedule 1.0 C-1 C-19 i Vol. II Appendix A Detailed Tables*. A-413 A-820 *List overleaf NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

vi Contents Appendix A Detailed Tables Vol. I Table 1R and 1U Monthly per capita quantity and value of consumption for each major State and all-india, by sector: food items Table 2R and 2U Monthly per capita quantity and value of consumption for each major State and all-india, by sector, from data collected for last 30 days : non-food items except durables Table 3R and 3U Monthly per capita quantity and value of consumption for each major State and all-india, by sector, from data collected for last 365 days : clothing, footwear, education, institutional medical care and durable goods Table 4R and 4U Number per 1000 possessing specific durable goods in five fractile classes of MPCE for each major State and all- India, by sector Table 5R and 5U 20 th, 40 th, 60 th and 80 th percentiles of distribution of rural/urban population by MPCE for each State/UT and all-india Table 6R and 6U Estimated population (00) in for each State/UT and all-india, by sector A-1 A-144 A-145 A-288 A-289 A-396 A-397 A-408 A-409 A-410 A-411 Major States: The 17 States of India which had a population of 20 million or more according to the Census of 2001. The States are: Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal. Together, these States accounted for nearly 94.7% of India s population in 2001. Detailed tables for the remaining States of India, and for the Union Territories, form Volume II of this report. NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

Contents vii Appendix A Detailed Tables Vol. II Table 1R and 1U Monthly per capita quantity and value of consumption for each minor State/ UT, by sector: food items Table 2R and 2U Monthly per capita quantity and value of consumption for each minor State/ UT, by sector, from data collected for last 30 days : non-food items except durables Table 3R and 3U Monthly per capita quantity and value of consumption for each minor State/ UT, by sector, from data collected for last 365 days : clothing, footwear, education, institutional medical care and durable goods Table 4R and 4U Number per 1000 possessing specific durable goods in five fractile classes of MPCE for each minor State/ UT, by sector A-413 A-556 A-557 A-700 A-701 A-808 A-809 A-820 Minor States: The 12 States of India which had a population of less than 20 million according to the Census of 2001. The States are: Arunachal Pradesh, Delhi, Goa, Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttaranchal. Union Territories (UTs): Andaman & Nicobar Islands, Chandigarh, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep and Pondicherry. Detailed tables for the major States of India, and for all-india, are placed in Volume I of this report. NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

Variation in rural per capita milk consumption among the major States, 2004-05 range State monthly per capita consn. (litres) <1 litre Chhattisgarh 0.67 per month Orissa 0.78 1-2 litres Assam 1.31 Jharkhand 1.44 West Bengal 1.45 2-3 litres Tamil Nadu 2.48 Maharashtra 2.73 Kerala 2.82 Bihar 2.98 3-4 litres Andhra Pradesh 3.05 Karnataka 3.30 Madhya Pradesh 3.41 all-india 3.87 4-5 litres Uttar Pradesh 4.64 Gujarat 4.98 9-10 litres Rajasthan 9.50 11-12 litres Punjab 11.55 13-14 litres Haryana 13.13 per month The text of this report is confined to a discussion of the all- India results. Nevertheless, to induce interested readers to go though the State-level tables given in Appendix A, we present without comments the table above showing inter- State variation in per capita milk consumption in rural areas of India s major States. NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

Chapter One Introduction 1.0.1 This is a report on household consumer expenditure in India based on a nationwide sample survey of the National Sample Survey Organisation. 1.0.2 The NSSO conducts regular consumer expenditure surveys as part of its rounds, each round normally of a year s duration and covering more than one subject of study. The surveys are conducted through household interviews, using a random sample of covering practically the entire geographical area of the country. The present report is based on data collected through the 61 st round of NSS (July 2004-June 2005). It is the second report of the consumer expenditure survey of that round. 1.0.3 Nowadays every round of NSS includes a consumer expenditure survey (CES), giving rise to an annual series of consumption data. Every 5 years or so, a larger-than-usual-scale CES is conducted as the main enquiry of a round. This gives rise to a quinquennial series of CES s. The sixth quinquennial CES was conducted in 1999-2000 in the 55 th round of NSS and the 61 st round CES is the seventh. 1.0.4 The household consumer expenditure schedule used for the survey collected information on quantity and value of household consumption with a reference period of last 30 days preceding the date of interview. To minimise recall errors, a very detailed item classification was, as usual, adopted to collect information, including 142 items of food, 13 items of fuel, 27 items of clothing, bedding and footwear, 17 items of educational and medical expenses, 52 items of durable goods, and about 90 other items. For items of clothing, footwear, and durable goods, on which consumption expenditure by individual varies widely from month to month, data with a reference period of "last 365 days" was also collected. The indicator of overall living standards of the household called MPCE (monthly per capita expenditure) was built up using "last 30 days" data for all goods and services. The schedule also collected some other household particulars including age, sex and educational level of each household member. 1.0.5 The first report 1 on consumer expenditure based on the 61 st round survey released information on (a) distribution of and persons over MPCE classes for each State/UT and all-india (b) averages (State/UT and all-india) of MPCE (c) break-up of these average values by important heads of consumption (d) break-ups of both quantity and value of per capita consumption of cereals and pulses by cereal/pulse type. 2 All average values were provided not only for the population as a whole but for 12 different groups of population demarcated by MPCE level. All the data were provided separately for rural and urban sectors. 1.0.6 In Report No.508, consumption expenditure break-up by 32 broad groups (14 food groups and 18 non-food groups) of items of consumption was given, the groups being: cereals; gram; cereal substitutes; pulses and pulse products; milk and milk products; edible oil; 1 NSS Report No. 508: Level and Pattern of Consumer Expenditure, 2004-05 2 The effect of alternative reference periods ( last 30 days and last 365 days ) on the estimates of consumption of certain categories of less frequently purchased items was, in addition, examined. NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

2 Chapter One egg, fish and meat; vegetables; fruits (fresh); fruits (dry); sugar; salt; spices; beverages and processed food; pan; tobacco; intoxicants; fuel & light; clothing; footwear; education; medical (institutional); medical (non-institutional); entertainment; minor personal effects; toilet articles; other household consumables; conveyance; other consumer services; rent, taxes and cesses; and durable goods. 1.0.7 Contents of the present report: In the present report an attempt has been made to study consumption patterns in greater detail, using the item classification adopted in the household consumer expenditure schedule. Monthly per capita expenditure estimates are presented here (Appendix A) for all items of consumption for which data was separately recorded in the schedule (see paragraph 1.0.4 above and Annexure C: Schedule 1.0), along with the estimated proportions of consuming each item during the last 30 days. All estimates are provided separately for rural and urban sectors of each State and Union Territory. For food, fuel, clothing and footwear, estimates of per capita quantity of consumption are also provided. (For these detailed items, estimates are not, however, generated separately for different MPCE classes of the population as such estimates would be subject to much wider margins of sampling error.) 1.0.8 Table 1 (R & U) of Appendix A gives these estimates for food items and Table 2, estimates for non-food items, based on last 30 days consumption data. For those categories of items for which both last 30 days and last 365 days data were collected (see paragraph 1.0.4 above), the last 30 days estimates are expected to be considerably inferior to the last 365 days estimates, as these categories consist of items which are purchased less frequently and are reported by much smaller numbers of for any given reference period. For these items, therefore, the estimates based on the last 365 days recall period are also presented, in Table 3 (R & U) of Appendix A. For durable goods, estimates based on last 30 days have been omitted from Table 2 (except for the category durable goods as a whole), as, for most of these items, the numbers of reporting during the last 30 days is so small, even at the all-india level, that the sampling errors of the estimates are expected to be very high. 1.0.9 All estimates are provided separately for rural and urban sectors of each State and Union Territory. In case estimates of per capita consumption are required for rural and urban combined (for a State/UT or all-india), the two estimates for rural and urban sectors will have to be aggregated using the estimates of rural population and urban population as weights. These estimates are provided in Table 6 of Appendix A. 1.0.10 In the concluding section of Chapter Three of the report, a study has been made of the possession of certain common durable goods in the population, based on information collected in the schedule on whether the household possessed each such durable on the date of survey. There were ten such durable goods: radio, television set, electric fan, air conditioner, air cooler, sewing machine, refrigerator, bicycle, motorcycle/scooter, and motor car/jeep. For each State/UT, Table 4 (R & U) in Appendix A provides estimates of the proportion of rural and urban in the State/UT possessing each durable. Further, estimates are provided of the same proportion separately for five fractile groups of population of the State/UT ranked by MPCE: the bottom 20%, the next 20%, and so on up to the top 20%. These estimates throw light on disparities in the possession of these durables among the population of each State/UT. 1.0.11 Appendix B gives details of the sample design and estimation procedure followed and Appendix C is a facsimile of the consumer expenditure schedule ( Schedule 1.0 ) that NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

Introduction 3 was canvassed in the surveyed. The report has been divided into two volumes. Volume II contains the part of Appendix A which relates to the minor States and Union Territories. Volume I consists of the rest of the report, and includes the text portion as well as Appendices B and C, and the part of Appendix A that relates to the major States. (See paragraph 2.11 on page 7.) Tables 5 and 6 of Appendix A are, however, placed wholly in Volume I because they consist of only three pages altogether. 1.1 Some details of the survey 1.1.1 Geographical coverage: The survey covered the whole of the Indian Union except (i) Leh (Ladakh) and Kargil districts of Jammu & Kashmir, (ii) interior villages of Nagaland situated beyond five kilometres of a bus route and (iii) villages in Andaman and Nicobar Islands which remain inaccessible throughout the year. Table P0: Number of villages/blocks allotted and surveyed for Schedule 1.0 and number of and persons surveyed: Central sample State/UT no. of villages no. of urban blocks no. of sample no. of sample persons allotted surveyed allotted surveyed rural urban rural urban (7) (8) (9) Andhra Pradesh 556 556 308 307 5555 2876 22860 11835 Arunachal Pradesh 156 156 60 60 1503 540 7731 2161 Assam 340 335 92 90 3350 900 17582 3829 Bihar 436 436 140 140 4354 1398 24298 7246 Chhattisgarh 200 200 80 80 1997 799 10602 3692 Delhi 8 8 120 120 59 1101 253 4708 Goa 16 16 24 24 160 238 731 1028 Gujarat 232 232 200 200 2320 1955 11592 9085 Haryana 168 168 104 104 1680 1040 9293 4979 Himachal Pradesh 216 216 40 40 2143 400 10261 1481 Jammu & Kashmir 288 190 144 89 1882 884 10956 4373 Jharkhand 240 239 104 104 2379 1040 12906 5084 Karnataka 288 288 224 224 2880 2227 13955 9625 Kerala 368 368 196 196 3300 1950 14427 8686 Madhya Pradesh 384 384 208 208 3838 2075 21180 10616 Maharashtra 504 504 504 504 5014 4993 24248 22721 Manipur 220 220 100 100 2177 1000 11157 5063 Meghalaya 116 116 44 44 1159 437 5785 2093 Mizoram 80 80 112 112 800 1112 4170 5565 Nagaland 96 96 32 32 960 320 5238 1578 Orissa 384 384 120 120 3836 1187 18954 5404 Punjab 244 244 188 188 2433 1855 12985 8865 Rajasthan 356 356 164 164 3541 1630 20155 8125 Sikkim 92 92 20 20 920 200 4206 680 Tamil Nadu 416 416 416 416 4159 4137 16223 15620 Tripura 176 176 56 56 1760 560 8025 2212 Uttar Pradesh 792 792 336 336 7868 3345 47607 18387 Uttaranchal 148 148 76 76 1465 750 7703 3395 West Bengal 500 500 292 292 4988 2889 24361 12011 A & N Islands 52 28 36 36 268 359 1215 1432 Chandigarh 8 8 32 32 80 300 365 1136 Dadra & N. Haveli 16 16 8 8 160 80 770 346 Daman & Diu 8 8 8 8 80 80 400 354 Lakshadweep 8 7 16 16 70 129 373 822 Pondicherry 16 16 56 56 160 560 640 2292 All-India 8128 7999 4660 4602 79298 45346 403207 206529 *Note that as many as 98 out of 129 allotted villages that could not be surveyed belonged to the disturbed areas of Jammu and Kashmir. NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

4 Chapter One 1.1.2 Population coverage: The following rules were followed: 1. Under-trial prisoners in jails and indoor patients of hospitals, nursing homes etc., were excluded, but the residential staff of these institutions were included. Convicted prisoners undergoing sentence were outside the coverage of the survey. 2. Floating population, i.e., persons without any normal residence, was excluded. But persons residing in open space, roadside shelter, under a bridge, etc., more or less regularly in the same place, were covered. 3. Foreign nationals were excluded, as well as their domestic servants, if by definition the latter belonged to the foreign national's household (see Chapter Two). A foreign national who had become an Indian citizen for all practical purposes was, however, covered. 4. Persons residing in barracks of military and paramilitary forces (like police, BSF etc.) were kept outside the survey coverage. However, the civilian population residing in their neighbourhood, including the family quarters of service personnel, was covered. 5. Orphanages, rescue homes, ashrams and vagrant houses were outside the survey coverage. However, the persons staying in old age homes, the students staying in ashram/hostels and the residential staff (other than monks/nuns) of these ashrams were covered. Although orphans living in orphanages were excluded, the persons looking after them and staying there were covered. 1.1.3 Sample size first-stage units: As is usual in the regular NSS rounds, most States and Union Territories participated in the survey: a State sample was surveyed by State Government officials in addition to the Central sample surveyed by NSSO. For rural India, 8128 villages formed the Central sample for this round. Of these, 7999 villages were ultimately surveyed. In the urban sector, the allocation for the Central sample was 4660 blocks, of which 4602 were surveyed. This report is based on the estimates obtained from the Central sample alone. 1.1.4 Table P0 shows the numbers of villages and urban blocks allotted for survey and actually surveyed, the numbers of rural and urban sample in which the consumer expenditure schedule, Schedule 1.0, was canvassed, and the corresponding numbers of sample persons covered. NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

Chapter Two Concepts and Definitions 2.1 Household: A group of persons normally living together and taking food from a common kitchen constitutes a household. The word "normally" means that temporary visitors are excluded but temporary stay-aways are included. Thus, a son or daughter residing in a hostel for studies is excluded from the household of his/her parents, but a resident employee or resident domestic servant or paying guest (but not just a tenant in the house) is included in the employer/host's household. "Living together" is usually given more importance than "sharing food from a common kitchen" in drawing the boundaries of a household in case the two criteria are in conflict; however, in the special case of a person taking food with his family but sleeping elsewhere (say, in a shop or a different house) due to space shortage, the household formed by such a person's family members is taken to include the person also. Each inmate of a mess, hotel, boarding and lodging house, hostel, etc. is considered as a single-member household except that a family living in a hotel (say) is considered as one household only; the same applies to residential staff of such establishments. 2.2 Adult: A person who has completed 15 years of age. 2.3 Household size: The size of a household is the total number of persons in the household. 2.4 Household consumer expenditure: The expenditure incurred by a household on domestic consumption during the reference period is the household's consumer expenditure. Household consumer expenditure is the total of the monetary values of consumption of various groups of items, namely (i) food, pan (betel leaves), tobacco, intoxicants and fuel & light, (ii) clothing and footwear and (iii) all other goods and services, including durable articles. 2.5 For groups (i) and (ii), the total value of consumption is derived by aggregating the monetary value of goods actually consumed during the reference period. An item of clothing and footwear is considered as consumed at the moment when it is brought into maiden or first use. The consumption may be out of (a) purchases made in cash or credit during the reference period or earlier; (b) home-grown stock; (c) receipts in exchange of goods and services; (d) any other receipt like gift, charity, borrowing and (e) free collection. Home produce is evaluated at the ex farm or ex factory rate. For evaluating the consumption of the items of group (iii), a different approach is followed. In this case, the expenditure made during the reference period for the purchase or acquisition of goods and services is considered as consumption. However, for a few items of expenditure such as rent, telephone charges, consumer taxes and railway season tickets, expenditure during the month is recorded as the amount that was last paid divided by the number of months to which the payment related. 2.6 It is pertinent to mention here that the consumer expenditure of a household on food items relates to the actual consumption by the members of the household and also by the guests during ceremonies or otherwise. To avoid double counting, transfer payments like charity, loan advance, etc. made by the household are not considered as consumption for items of groups (i) and (ii), since transfer receipts of these items have been taken into account. NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

6 Chapter Two However, the item "cooked meals" is an exception to this rule. Meals prepared in the household kitchen and provided to the employees and/or others would automatically get included in domestic consumption of employer (payer) household. There is a practical difficulty of estimating the quantities and values of individual items used for preparing the meals served to employees or others. Thus, to avoid double counting, cooked meals received as perquisites from employer household or as gift or charity are not recorded in the recipient household. As a general principle, cooked meals purchased from the market for consumption of the members and for guests and employees will also be recorded in the purchaser household. 2.7 This procedure of recording cooked meals served to others in the expenditure of the serving leads to bias-free estimates of average per capita consumption as well as total consumer expenditure. However, donors of free cooked meals are likely to be concentrated at the upper end of the per capita expenditure range and the corresponding recipients at the lower end of the same scale. Consequently, the derived nutrition intakes may get inflated for the rich (net donors) and understated for the poor (net recipients). This point has to be kept in mind while interpreting the NSS consumer expenditure data for studies relating to the nutritional status of. 2.8 Value of consumption: Consumption out of purchase is evaluated at the purchase price. Consumption out of home produce is evaluated at ex farm or ex factory rate. Value of consumption out of gifts, loans, free collections, and goods received in exchange of goods and services is imputed at the rate of average local retail prices prevailing during the reference period. 2.9 Monthly per capita consumer expenditure (MPCE): For a household, this is the total consumer expenditure over all items divided by its size and expressed on a per month (30 days) basis. A person s MPCE is understood as that of the household to which he or she belongs. 2.10 Reference periods: The reference periods used for collection of consumption data for different groups of items are given below: category I II item of consumption clothing, footwear, education, medical care (institutional) and durable goods all other items (viz all food, pan, tobacco & intoxicants, fuel and light, miscellaneous goods and services including noninstitutional medical care, rents and taxes) reference period last 30 days and last 365 days last 30 days For items of category I, two estimates of aggregate or per capita consumption are possible, one based on last 30 days expenditure and the other on last 365 days expenditure. In this report, estimates based on both reference periods have been provided for all items of Category I except durable goods. For durable goods, only estimates based on last 365 days have been provided. For computation of MPCE, which is used as a classificatory variable in some tables, only data with reference period last 30 days were used. NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

Concepts and Definitions 7 2.11 Major States: This refers to the 17 States of India which had a population of 20 million or more according to the Census of 2001. The States are: Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal. Together, these States accounted for nearly 94.7% of India s population in 2001. 2.12 Detailed items: The schedule of enquiry used for recording data from each sample household had an elaborate list of consumption items. Some of these items were group subtotal items (such as clothing: sub-total, or conveyance: sub-total ). Against sub-total items, entries were made by totalling the entries against the various items of the group. Against all items other than these sub-total items, entries were made by asking direct questions to the informant. These items are referred to in this report as detailed items. 2.13 The coverage of various categories of consumption items used in presenting the results of the survey in this report is explained below. NOTES ON COVERAGE OF DIFFERENT CONSUMPTION ITEMS 3 103-106 Rice products: Rice products are foods like chira, khoi, lawa, muri, rice powder, etc. which are obtained by splitting, frying, powdering, or parching of the grain. 114 Other wheat products: Does not include wheat preparations like biscuits, cakes, etc., which are shown separately in beverages, etc. 117 Maize products: This includes cornflakes, popcorn, etc., made of maize. 118 Barley products: This includes sattu prepared by frying and powdering of barley. 129 Cereals: Note that household consumption of cereals does not include consumption of cereals by livestock belonging to the household. Such expenditure, being part of farm expenditure, is excluded from household consumer expenditure altogether. 139 Cereal substitutes: Cereals are usually a person's staple food in India. But sometimes, by choice or due to scarcity, a person may consume little or no cereal. The food requirement is partially or wholly met in such cases by consumption of food items which could be treated as substitutes for cereals. Tapioca, for example, is consumed in some parts of the country as a substitute for cereals. Similarly, jackfruit seed, mahua, etc. are also consumed as substitute for cereals. Potato or sweet potato consumed as substitutes for cereals are not, however, shown here. These are included in vegetables. 151 Gram products: This includes gram products such as sattu obtained by frying and powdering of gram (whole grain). Besan made out of gram is, however, a separate item (152). 160 Milk: liquid: This covers milk as directly obtained from cow, buffalo, goat or any other livestock. Milk sold in bottle or polypack, as well as readily drinkable flavoured and bottled 3 The number at the start of each paragraph is the code used for the item in the schedule used for data collection (see Appendix C: Schedule 1.0). NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

8 Chapter Two milk is included. Milk transformed at home into curd, casein, ghee, butter, etc. for the purpose of household consumption is also included. Milk used in home preparation of sweetmeats, etc., is also accounted here. 161 Baby food: This covers only those baby foods of which the principal constituent is milk. 166 Ice-cream: This category covers only ice-cream of which the major component is milk. Ice with syrup but without milk sold under the name of ice-cream is not included. 170-174, 179 Edible oil: Edible oils used for toilet purpose by the household are not included here. Oilseeds are sometimes purchased or grown by a household for extracting edible oil (by crushing) for consumption. The value of oilseeds so used is included in edible oil. 229 Vegetables (sub-total): This includes ginger and garlic. In Table P1 of Chapter Three, however, the definitions used (see Chapter Two, Concepts and Definitions, of NSS Report No.508, from which the table is taken) exclude ginger and garlic from vegetables and include them in spices. As a result, the estimates of value of vegetable consumption appearing in Table P1 are lower than what is shown against item 229 in Table 1, Appendix A. 247 Other fresh fruits: This includes sugarcane consumed like fruits. 289 Spices (sub-total): This excludes ginger and garlic, which are accounted in vegetables. In Table P1 of Chapter Three, however, the definitions used (see Chapter Two, Concepts and Definitions, of NSS Report No.508, from which the table is taken) exclude ginger and garlic from vegetables and include them in spices. As a result, the estimates of value of consumption of sugar, salt and spices shown in Table P1 are higher than what they would be if the estimates of spice consumption are taken from Table 1 of Appendix A without making this adjustment. 294 Ice: This includes only ice purchased for household consumption. 298 Other beverages (cocoa, etc.): This also includes mineral water, soda water, etc. 300 Biscuits: This includes all kinds of biscuits, other confectionery such as chocolate, toffee, lozenge, etc., and sugar substitutes like saccharine. 301-308 Pickles, sauce, jam, jelly, prepared sweets, etc.: If these items are prepared at home, consumption is shown not against the item but against the ingredients (flour, sugar, vegetables, oil, etc.). If these items are purchased, consumption is shown against pickles, sauce, etc., as the case may be. Similarly, fruit juice refers to purchased fruit juice. 303 Cooked meals: This refers to cooked meals purchased from the market (e.g., from hotels, restaurants and canteens). 309 Beverages, etc.: Short for beverages, refreshments and processed food. 322 Leaf tobacco: Includes all leaf tobacco consumed in any form, and also tobacco leaf burnt and powdered for brushing teeth. NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

Concepts and Definitions 9 330 Ganja: Includes ganja consumed in the form of cigarettes. 332 Country liquor: Excludes country liquor prepared at home from its ingredients and consumed. For such liquor, consumption is accounted against the ingredients. 342 Electricity: Includes meter rent and surcharge for electricity. 352 Gobar gas: The value of gobar gas is imputed on the basis of value of inputs used for manufacturing gobar gas. 379 Clothing: Excludes raincoats. Expenditure on tailor-made clothing excludes tailoring charges, which are shown against tailor under consumer services. Consumption of an article of clothing is considered to take place when it is brought into first use. However, clothing purchased second-hand is considered as consumed as soon as it is purchased. Imported ready-made garments, even if purchased second-hand, are shown as first-hand purchase. Livery supplied by the employer is taken into account in household consumption of clothing even if used during duty hours only. 389 Bedding: Apart from bedding proper such as bed sheets, pillows and mosquito nets, this includes rugs, curtains, towels, mats, cloth for upholstery, etc. 390-394, 399 Footwear: This includes charges paid to a cobbler for getting a pair of shoes or other footwear made. It excludes the cost of straps purchased separately. 409 Education: This includes expenditure on goods purchased for the purpose of education, viz., books and journals, newspapers, paper, pen, pencil, etc., and also magazines, novels and other fiction. Expenditure on Internet other than telephone charges is included here. All compulsory payments collected by educational institutions at the time of admission or along with the regular fees are regarded as part of the expenditure for education and included in education, even if termed donations by the institution collecting them. True donations to the school made voluntarily on account of charities are not included here, as they are regarded as transfer payments. 410-429 Medical: institutional and non-institutional expenditure: The distinction between institutional and non-institutional medical expenses lies in whether the expenses were incurred on medical treatment as an in-patient of a medical institution (institutional), or otherwise (non-institutional). Medical institution here covers private as well as Government institutions such as hospitals and nursing homes. 439 Entertainment: This includes expenditure on cinemas, theatres, melas, fairs and picnics, expenditure incurred on processing, developing, etc., of photographic film, charges paid for hiring of video cassette/vcr/vcp, and charges for viewing a video show. Expenses incurred on subscription to dish antenna, cable TV facilities, etc. are also included. Club fees are included here. 449 Minor personal effects: In the consumer expenditure schedule, this group was called goods for personal care and effects. Examples are spectacles, torches, locks, umbrellas, raincoats and gas lighters. Though these are, strictly speaking, durable goods, they are, by convention, accounted in the miscellaneous goods and services block. NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

10 Chapter Two 468 Other washing requisites: This includes brushes, utensil cleaners, steel wool, etc. 479 Other household consumables: In the consumer expenditure schedule, this group was called sundry articles. 513 Other conveyance expenses: Includes animal feed for animal-drawn carriage or vehicle. Does not include driver's or cleaner's salary, or garage rent. 519 Conveyance: This includes expenditure incurred on account of journeys undertaken and/or transportation of goods made by any means of conveyance. The expenditure is the actual fare paid except in case of railway season tickets, for which expenditure is calculated as the cost of the ticket divided by the number of months for which it is valid. Expenditure on journeys undertaken by household members as part of official tours is not considered as consumer expenditure of the household. But journeys to commute to and from place of work are included here. The expenditure incurred on journeys undertaken under Leave Travel Concession, etc., even if reimbursed, is included. In case of owned conveyance, the cost of fuel (petrol, mobile oil, diesel, etc.) for power-driven transport and animal feed for animal-drawn carriage is considered. 520-522, 529 Rent: For government accommodation, the portion of monthly emoluments forfeited on account of occupation of government quarters is included in monthly house rent expenditure. Salami/pugree is not included in rent. Hire charges of video cassettes, VCR and VCP are not accounted in consumer rent but under amusement. 539 House rent, garage rent (imputed): For a household that resides in a house (or uses a garage) which it either owns or otherwise occupies without paying any rent, the value of this is imputed on the basis of prevailing rate of rent for similar houses in the locality or surrounding areas. This information is obtained for urban only. Imputed rent is defined as zero for which occupy hired accommodation. Estimate of per capita imputed rent (for non-hired accommodation) is, however, computed taking both nonzero and zero figures in the calculation. Note also that imputed rent is not included in the computation of household consumer expenditure and MPCE. 540 Water charges: Water charges last paid to the municipality or other local bodies divided by the number of months for which the amount was charged may be recorded against this item. This item does not include the cost of water purchased through tanker, etc. 541 Other consumer taxes and cesses: This category includes road cess, chowkidari tax, municipal rates, other taxes and cesses paid by the household as a domestic consumer, and consumer license fees such as fees paid for possession of firearms, vehicles, etc. It does not include income tax or sales taxes. 550-649, 659 Durable goods: Items included here all have a lifetime of one year or more. However, some petty durables such as spectacles, torches, locks, umbrellas, etc., are excluded. Note that glassware, earthenware and plastic goods such as buckets are excluded from durable goods and included in other household consumables. Consumption expenditure on durable goods includes both expenditure on purchase and expenditure on repair and construction of household durables. For land and residential building, only expenditure on repair and construction is included. NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

Chapter Three Summary of Findings 3.0.0 The survey estimates presented in this report are of three kinds: (a) Estimates of per capita consumption (quantity and value) of detailed items (b) Estimates of proportions of incurring consumer expenditure on different items during a 30-day or 365-day period (c) Estimates of proportions of possessing specific durable goods on the date of survey (for 10 common consumer durables) Of the three kinds of estimates, (a) and (b) will be discussed together in Sections 3.1 and 3.2 below, and (c) in Section 3.3. 3.0.1 As mentioned in Chapter 1, the NSS 61 st round results released prior to this report use an item classification with 32 broad item groups to describe the pattern of consumer expenditure in India and its States and Union Territories. The 32 groups include 14 food groups and 18 non-food groups. The table below, reproduced from NSS Report No.508 4 (61 st round), gives a broad break-up using 20 item groups. The present report makes use of the detailed item classification adopted in the schedule of enquiry to study consumer expenditure patterns in much greater detail. In this report, per capita expenditure estimates are presented for more than 300 different items of consumption, including 142 items of food, 13 items of fuel, 27 items of clothing, bedding and footwear, 17 items of education and medical care, 52 items of durable goods, and about 90 other items. These estimates are given separately for rural and urban areas of all 35 States and UTs of India. Table P1: Break-up of MPCE by 20 broad item groups: all-india, 2004-05 item group monthly per capita exp. (Rs.) item group monthly per capita exp. (Rs.) rural urban rural urban cereals & cereal substitutes 101 106 fuel and light 57 105 pulses & their products* 18 24 clothing & footwear*** 30 49 milk & milk products 47 83 education 15 53 edible oil 26 36 medical 37 55 egg, fish & meat 19 28 misc. consumer goods 33 73 vegetables 34 47 conveyance 21 69 fruits 10 24 other consumer services 21 74 sugar, salt and spices 27 34 rent 3 59 beverages, refreshments & 25 65 taxes and cesses 1 8 processed food** durable goods 19 43 food total 308 447 non-food total 251 605 pan, tobacco & intoxicants 15 17 all items 559 1052 *includes gram ** includes purchased cooked meals ***excludes tailoring charges 3.0.1 Estimates of quantity and estimates of value 3.0.1.1 For detailed items, estimates of consumption in quantity terms are available from the 61 st round survey for most items of food, clothing, bedding and fuel, but not for durables and 4 Level and Pattern of Consumer Expenditure, 2004-05. There is, however, a slight difference between the estimates in Table P1 and the corresponding estimates given in Table 1, Appendix A, in case of (i) vegetables, and (ii) spices. For the reason, see Chapter Two, paragraph 2.13 (Notes on Coverage), items 229 and 289. NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05

12 Chapter Three a large number of minor miscellaneous articles, nor for services of any kind (including educational and medical services). Estimates of value of consumption in rupees per person per month are, however, available for every kind of item, and have been presented for every item, for rural and urban sectors of each State and UT. 3.0.2 Estimates of proportion of consuming an item within a period 3.0.2.1 For each detailed item, estimates of the proportion (number per 1000) of in any sector of any State/UT that consumed the item in a 30-day period are given alongside the estimates of per capita consumption. For categories of infrequently purchased items clothing, footwear, education, institutional medical care, and durables estimates for a 365- day period are also provided (alongside the estimates of per capita consumption based on a 365-day recall period). These estimates provide an alternative way of studying patterns of consumption by indicating the spread of consumption of an item among the population, or the shrinking of the population consuming the item relative to the entire population. 3.0.3 Data from 50 th and 55 th rounds 3.0.3.1 Estimates at detailed item level are, conventionally, not generated by NSSO from consumer expenditure surveys of the annual series, but only from the larger-scale surveys of the quinquennial series (see paragraph 1.0.3). Even for the quinquennial series surveys, the practice of preparing a report presenting estimates at detailed item level came into being only from the 50 th round (1993-94) onwards. Only two sets of data are, therefore, available for a study of trends in consumption of detailed items over the last decade. These are available in NSS Reports 404 and 461, both bearing the name Consumption of Some Important Commodities in India, and relating respectively to1993-94 and 1999-2000. 3.0.3.2 While the present report gives estimates of per capita consumption (and proportion of consuming ) for each detailed item listed in the schedule of enquiry, a similar report (Report No.461) based on of the 55 th round, relating to 1999-2000, excluded items on which the estimated proportion of consuming was less than 10% and estimated value of per capita consumption expenditure was less than Rs.0.50. Though no such specific criteria were followed for Report No.404 (50 th round), it, too, was selective in the sense that estimates were presented for only 55 items of food (out of 190 used in the schedule of enquiry for that survey), 6 items of fuel, 10 items of clothing and footwear, 6 items of education and medical care, and 14 other miscellaneous items. In the 55 th round report, a special feature was that the all-india estimates of both kinds per capita consumption and proportion of consuming - were presented not only for the entire rural and urban population but also for in 12 different monthly per capita expenditure classes. 3.0.3.3 The estimates for the items whose consumption was reported by very few sample, though presented for the sake of completeness, should obviously be used with more caution than estimates for items reported by a substantial number of. 3.0.3.4 This chapter attempts to discern trends in per capita consumption of detailed items at the all-india level by comparison with estimates from the 50 th and 55 th rounds, where available. State-level results for a few major items appear in Statements 1 and 2 (pages 32-38). 3.1 CONSUMPTION OF DETAILED ITEMS: FOOD 3.1.0.1 Table 1 of Appendix A gives quantity and value of per capita consumption, over a 30- day period, of 142 items of food. It also shows the estimated percentages of that consumed these items during a 30-day period of the reference year. NSS Report No.509: Household Consumption of Various Goods and Services in India, 2004-05