Indians spend much more on paan, tobacco and liquor now than they did 10 years ago: Govt

Consumption of paan, tobacco and other intoxicants has increased with people spending a bigger portion of their income on such products in the last 10 years, according to a survey.

The Household Consumption Expenditure Survey 2022-23, released last week, revealed that the expenditure on paan, tobacco and intoxicants as a portion of total household spending has increased in rural as well as urban areas.

The data showed that the expenditure on these items has increased to 3.79 per cent in 2022-23 in rural areas from 3.21 per cent in 2011-12.

Similarly, in urban areas, the spending grew from 1.61 per cent in 2011-12 to 2.43 per cent in 2022-23.

The proportion of spending on education has reduced to 5.78 per cent in urban areas in 2022-23 from 6.90 per cent in 2011-12.

In rural areas, this proportion has come down to 3.30 per cent in 2022-23 from 3.49 per cent in 2011-12.

The National Sample Survey Office (NSSO), Ministry of Statistics and Programme Implementation, conducted the Household Consumption Expenditure Survey (HCES) from August 2022 to July 2023.

This survey on household consumption expenditure aims at measuring estimates of each household's Monthly Per Capita Consumption Expenditure (MPCE) and its distribution separately for the rural and urban sectors of the country, for states and Union Territories, and different socio-economic groups.

The survey also stated that spending on beverages and processed food has increased to 10.64 per cent in urban areas in 2022-23 from 8.98 per cent in 2011-12.

In rural areas, it increased from 7.90 per cent in 2011-12 to 9.62 per cent in 2022-23.

The spending on conveyance also rose from 6.52 per cent in 2011-12 to 8.59 per cent in 2022-23 in urban areas.

It also climbed in rural areas from 4.20 per cent in 2011-12 to 7.55 per cent in 2022-23.

According to the study, the MPCE more than doubled during the period from 2011-12 to 2022-23.

The average MPCE at current prices (without imputation) more than doubled to ₹6,459 in urban areas in 2022-23 from ₹2,630 in 2011-12.

In rural areas, it jumped to ₹3,773 in 2022-23 from ₹1,430 in 2011-12.

As per the study, the average MPCE at 2011-12 prices (without imputation) also increased to ₹3,510 in 2022-23 from ₹2,630 in 2011-12 in urban areas.

Similarly, it rose to ₹2,008 from ₹1,430 in rural areas.

It showed that the average MPCE also increased (with imputation) to ₹6,521 in 2022-23 from ₹2,630 in 2011-12 in urban areas.

Similarly, it rose to ₹3,860 from ₹1,430 in rural areas.

The average MPCE at 2011-12 prices (with imputation) increased to ₹3,544 in 2022-23 from ₹2,630 in 2011-12 in urban areas.

It increased to ₹2,054 from ₹1,430 in rural areas.

The estimates of MPCE are based on the data collected from 2,61,746 households (1,55,014 in rural areas and 1,06,732 in urban areas) in the central sample spread over all states and Union Territories.

In HCES:2022-23, the usual practice of imputation of the value figures for consumption of out of home-grown/home-produced stock and gifts, loans, free collection and goods received in exchange of goods and services etc. has been continued, and accordingly, estimates of MPCE have been generated.