Gujarat registers maximum growth in per-capita food and non-food expenditure

12 March, 2013

Gujarat has registered maximum growth rate of about 28 per cent and 33 per cent in per capita food and non-food consumption expenditure across India during 2004-05 and 2009-10, a study by industry body ASSOCHAM has found.

Besides registering a growth of about 24.69 per cent, Gujarat has also topped in terms of household consumption of fast moving consumer goods (FMCG) during the aforesaid five year period, highlights the study titled ‘Evolution of Indian Rural Markets During 2004-05 to 2009-10’.

West Bengal has seen least growth of just about 1.6 per cent, about eight per cent in per-capita food and non-food consumption expenditure, and has also registered negative growth rate of about two per cent for household expenditure on FMCG.

“The per capita food and non-food consumption expenditure across India has increased at a pace of over 14 per cent and 17 per cent respectively during 2004-05 and 2009-10,” said D.S. Rawat, national secretary general of Assocham while releasing the findings of the study. “The household consumption of FMCG across India has registered a growth rate of over 11 per cent during the aforesaid period,” added Rawat in a statement.

Haryana has the highest average rural household monthly expenditure on food items worth over Rs 2,584 followed by Jammu and Kashmir (Rs 2,378) and Punjab (Rs 2,377). Odisha has minimum average rural household monthly expenditure on food worth just about Rs 1,215 followed by Tamil Nadu (Rs 1,280), Madhya Pradesh and Chhattisgarh (Rs 1,322).

Apart from Gujarat, Haryana and Maharashtra have also registered a healthy growth rate of about 24 per cent in per capita food consumption expenditure across India.

Households in Kerala, Punjab and Haryana spend highest on non-food consumer items as these states have registered an average monthly household expenditure on non-food items worth over Rs 3,078; Rs 2,883 and Rs 2,580 respectively. Odisha (Rs 936), Bihar and Jharkhand (Rs 1,051) and West Bengal (Rs 1,071) have the lowest monthly household expenditure on non-food items in India, highlights the study.

Apart from Gujarat, Kerala (27 per cent), North Eastern States (26 per cent) and Assam (24 per cent) have registered maximum growth in the household monthly expenditure on non-food items during the five year period.

Also, the household non-food expenditure in rural areas increased at a lower rate in West Bengal and Haryana (eight per cent), Madhya Pradesh (10 per cent) and Punjab (14 per cent).

The ASSOCHAM study also indicates that households in Haryana, Punjab, and Jammu & Kashmir spend more on FMCG as rural households in these states spend over Rs 2,172, Rs 1,884 and Rs 1,866 respectively per month on FMCG. The rural households in Odisha, Tamil Nadu, West Bengal and Madhya Pradesh spend less than Rs 1,000 on FMCG per month.

Apart from Gujarat, Haryana (24.5 per cent) and Maharashtra (18.6 per cent) have witnessed fastest growth in the household monthly expenditure on FMCG and apart from West Bengal, the state of Odisha has also seen significant decline in household expenditure on FMCG in real terms.