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R9ttd'.Report No. 562 (68ll.014)

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Household Consumer Expenditure acrossSocio-Economic GrouPS, 201L'12

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Preface

The Household Consumer Expenditure Surveys of the National Sample Survey (NSS) are theprimary source of data on various indicators of level of living of different segments of the populationat national and State levels. These are used for planning, policy formulation, decision support and asinput for further statistical exercises by various Government organizations, academicians, researchersand scholars. NSS surveys on Household Consumer Expenditure with a large sample size ofhouseholds have been conducted quinquennially from the 27tl1 round (October 1972 - September1973) ofNSS onwards. The NSS 68th round survey, carried out during July 2011 - June 2012, wasthe ninth quinquennial survey in the series, covering subjects of (i) Household Consumer Expenditureand (ii) Employment and Unemployment. The field work ofthis survey was carried out by the FieldOperations Division (FOD) of the National Sample Survey Office (NSSO), which surveyed theCentral sample. Most of the State Governments also participated in the survey on a matching samplesize basis.

Based on the Central sample data, the results of the quinquennial surveys of ConsumerExpenditure are being brought out by NSSO in a number of reports. Key Indicators of HouseholdConsumer Expenditure in India, 2011-12, and unit level data were released in June 2013. Apart fromthis, six detailed reports were planned to be released on varied aspects of household consumerexpenditure based on NSS 68th round data. The three reports already released are: first, Level andPattern of Consumer Expenditure, giving estimates of averages, distribution and composition ofhousehold consumer expenditure at national and State levels; second, Household Consumption ofVarious Goods and Services in India, giving estimates of per capita expenditure for all items ofconsumption for which data were separately recorded in the schedule of enquiry, along with theestimated proportions of households consuming each item during the reference period and third,Nutritional Intake in India, giving estimates of nutritional intake by the Indian population. Thepresent report, the fourth in the series, investigates the variation in level and pattern of consumerexpenditure across various socio-economic groups of households. Households are categorised intodifferent socio-economic groups on the basis of (i) social group (ii) household (occupation) type and,in rural areas, also by (iii) size of land possessed. This report contains three chapters and threeappendices. The main findings of the survey relating to the subject of this report are presented inChapter Three.

The Survey Design and Research Division (SDRD) of the NSSO undertook thedevelopment of the survey instruments and the preparation of this document. The field work wascarried out by the Field Operations Division (FOD) ofNSSO while the data processing and tabulationwork was handled by the Data Processing Division (DPD) of NSSO. The Coordination andPublication Division (CPD) coordinated various activities pertaining to the survey.

I am highly thankful to the members of the Working Group of NSS 68th round andNational Statistical Commission for their valuable guidance provided at various stages of the survey. Ialso place on record my appreciation of efforts made by officers of different divisions of NSSOinvolved in the preparation of this document. I hope that this document will be found useful byplanners, policy makers and researchers. Suggestions for improvement of its content and coveragewill be highly appreciated.

New DelhiFebruary 2015

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Director General & Chief Executive OfficerNational Sample Survey Office

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NSS Report No.562: Household Consumer Expenditure across socio-Economic Groups, 2011-12

Highlights

The report is based on information collected through NSS Schedule 1.0 (Consumer Expenditure), Type 2, during July 2011-June 2012 from 101651 households (59683 rural and 41968 urban) in 7469 villages and 5268 urban blocks spread over the entire country.

AVERAGE MPCE ACROSS SOCIO-ECONOMIC GROUPS

In rural India, the average MPCE was Rs.1122 for ST, Rs.1252 for SC and Rs.1439for OBC. In urban India it was Rs.2193 for ST, Rs.2028 for SC, and Rs.2275 for OBC. [Statement 3.1]

The average MPCE of ‘Others’ at all-India level (Rs.1719 in rural and Rs.3242 in urban India) was more than the all-groups average (Rs.1430 in rural and Rs.2630 in urban India) in both sectors. [Statement 3.1]

Among the rural household types, average MPCE was Rs.1509 for ‘self-employed in non-agriculture’, Rs.1436 for ‘self-employed in agriculture’, Rs.2002 for ‘regular wage/salary earning’, Rs.1159 for ‘casual labour in agriculture’, Rs.1238 for ‘casual labour in non-agriculture’ and Rs.1893 for ‘others’. [Statement 3.2]

In urban India, average MPCE was Rs.2415 for the ‘self-employed’, Rs.3062 for the ‘regular wage or salary earning’, Rs.1514 for ‘casual labour’ and Rs.3734 for ‘others’. [ Statement 3.2]

Among rural households classified by size of land possessed, the topmost class (>4 hectares) had an average MPCE of Rs.1953 and the lowest class (

ii Highlights

NSS Report No.562: Household Consumer Expenditure across socio-Economic Groups, 2011-12

in MPCE, while the percentage of ‘casual labour in agriculture’ and ‘casual labour innon-agriculture’ households declined markedly. [Para 3.5.6]

In the urban sector, a steep fall was observed in the percentage of population of‘casual labour’ households in an MPCE class, relative to the entire population, throughout the MPCE range, from a level of 249 per 1000 in bottom MPCE class to 10 per 1000 in the top MPCE class. For the ‘regular wage/salaried’, a smooth upward trend was seen. [Para 3.5.7]

In the rural sector, for the top two land possessed size classes (between 2 to 4 hectares and more than 4 hectares), the proportion of persons in an MPCE class increased with MPCE relative to the entire population, and the rise was steeper for the 4.01+ class. [Para 3.5.10]

PATTERN OF CONSUMPTION: VARIATION ACROSS SOCIO-ECONOMIC GROUPS

Among rural households cereals accounted for 13% of consumer expenditure for the ST households, 11% for the SC and OBC households, and 10% for the ‘Others’household. In urban area the ST and SC households spent 8% of their consumer expenditure on cereals, the OBC households spent 7%, the ‘Others’ spent 6%. The share of non-food varied over social groups from 44% for the ST group to 49% for ‘Others’ in the rural sector and from 53% for SC to 60% for Others in the urban sector. [ Statement 3.8]

Among rural households cereals accounted for 12% of consumer expenditure for ‘casual labour in agriculture’ households, around 8% for ‘others’ and ‘regular wage/salary earning’ households; approximately 11% for the other three household types. Among urban households ‘casual labour’ households spent 10% of their consumer expenditure on cereals, the self-employed spent 7%, the ‘regular wage/salary earning’ spent 6%, and ‘others’ 5%. [ Statement 3.9]

Among the land possessed size classes in rural areas, the lowest four size classes (spanning the 0-2 hectares range) showed very similar consumption patterns. Beyond this range, consumption patterns showed the characteristics of the relatively affluent, with the share of food falling. [ Statement 3.10]

TRENDS IN MPCE DIFFERENCES AMONG SOCIAL GROUPS

Estimates from the quinquennial consumer expenditure surveys conducted in 2004-05, 2009-10, and 2011-12 indicate that the ranking of the social groups by MPCE has remained the same over the 7-year period 2004-05 to 2011-12 in both rural and urban sectors. In both sectors, ‘Others’ had the highest MPCE, followed by ‘OBC’, over this period. The lowest MPCE was that of the ST group in the rural sector and that of the SC group in the urban. [ Statement 3.11]

Average MPCE of the OBC group, in both the rural and urban areas, showed a minor improvement in respect of percentage difference from average MPCE of all-social-groups between 2004-05 and 2011-12. [ Statement 3.11]

NSS Report No. 562: Household Consumer Expenditure across Socio-Economic Groups, 2011-12

Contents

Chapter One

1. Introduction 11.1 Background 11.2 Objective of the survey 11.3 Reports of the 68th round CES 21.4 Contents of this report 21.5 Features of the survey: schedules of enquiry 41.6 Features of the survey: scope and coverage 5

Chapter Two

2. Concepts and Definitions 72.1 Conceptual framework 72.2 Monthly per capita expenditure (MPCE) 82.3 Other concepts and definitions 92.4 A note on data comparability 13

Chapter Three

3. Summary of findings 143.1 Average MPCE across social groups 143.2 Average MPCE across household types 163.3 Average MPCE across social groups within each household type 173.4 Average MPCE across household land possessed size classes (rural) 193.5 Distribution of MPCE: variation over socio-economic groups 203.6 Pattern of consumption: variation across socio-economic groups 253.7 Trends in MPCE differences among social groups 27

ii Contents


Appendix A

Detailed Tables1R/U Average MPCE and per 1000 break-up of persons by fractile class of

MPCE for different household types (States/UTs & all-India)A-1

2R/U Average MPCE and per 1000 break-up of persons by fractile class of MPCE for different social groups (States/UTs & all-India)

A-37

3R Average MPCE and per 1000 break-up of persons by fractile class of MPCE for households in different size classes of land possessed - Rural

(States/UTs & all-India)

A-73

4R Estimated number of households and persons by household type, social group and size class of land possessed - Rural (States/UTs & all-India)

A-91

5U Estimated number of households and persons by household type and social group - Urban (States/UTs & all-India)

A-163

6R Average MPCE by household type, social group and size class of land possessed - Rural (States/UTs & all-India)

A-169

7U Average MPCE by household type and social group – Urban (States/UTs & all-India)

A-241

8R/U Per 1000 break-up of households of each socio-economic category by fractile class of MPCE (all-India only)

A-247

9R/U Break-up of average MPCE by broad group of food items for each socio-economic category of households (all-India only)

A-258

10R/U Break-up of average MPCE by broad group of non-food items for each socio-economic category of households (all-India only)

A-269

Appendix B

Sample Design and Estimation Procedure B-1 – B-9

Appendix C

Schedule 1.0 –Type 2 C-1 - C-21

NSS Report No.562: Household Consumer Expenditure across Socio-Economic Groups, 2011-12

Chapter One

Introduction

1.1 Background

1.1.1 The National Sample Survey Office (NSSO) conducts nationwide household consumer expenditure surveys at regular intervals as part of its “rounds”, each round normally of a year’s duration. These surveys are conducted through interviews of a representative sample of households selected randomly through a scientific design and cover almost the entire geographical area of the country.

1.1.2 The household consumer expenditure survey (CES) is generally conducted along with the employment-unemployment survey of the NSS at quinquennial intervals. Thus, "quinquennial" surveys on consumer expenditure and employment-unemployment were conducted in the 27th, 32nd, 38th, 43rd, 50th, 55th, 61st and 66th rounds of NSS, at roughly 5-year intervals.

1.1.3 In its 32nd Meeting held on 23-24 April 2010, the National Statistical Commission (NSC) considered the use of the 2009-10 NSSO quinquennial survey as the base year for both the price indices as well as revision of the national income estimates. The NSC felt that 2009-10, being a non-normal year, may pose problems; hence, it was desirable to repeat the survey once again in respect of consumer expenditure as well as employment-unemployment issues. In its 33rd Meeting held on 19-21 May 2010, the NSC decided that the 68th Round of NSS would be devoted to repeating the quinquennial survey on consumer expenditure and employment-unemployment.

1.1.4 Accordingly, the 66th round survey on consumer expenditure and employment-unemployment was repeated in the 68th Round with some minor changes in item break up in schedule 1.0 conducted in 2011-12. The 68th round survey thus became the ninth survey of the “quinquennial” series. For the reason mentioned in the above paragraph, readers of this and forthcoming reports are cautioned against making direct comparisons of the estimates of the 68th round with those of the 66th. Three reports based on household consumer expenditure survey have already been released.

1.2 Objective of the survey

1.2.1 The NSS consumer expenditure survey aims at generating estimates of average household monthly per capita consumer expenditure (MPCE), the distribution of households and persons over the MPCE range, and the break-up of average MPCE by commodity group,separately for the rural and urban sectors of the country, for States and Union Territories, and for different socio-economic groups. These indicators are amongst the most important measures of the level of living of the relevant domains of the population. The distribution of

2 Chapter One


MPCE highlights the differences in level of living of the different segments of the population and is an effective tool to study the prevalence of poverty and inequality. These estimates thus assist the apex planning and decision-making process in allocating the nation’s resources among sectors, regions, and socio-economic groups, and assess the “inclusiveness” of economic growth.

1.2.2 Besides measurement of the level and the pattern of household consumption, another important use of the CES is to provide the budget shares of different commodity groups for the rural and urban population, which are used to prepare the weighing diagram for official consumer price indices (CPIs).

1.2.3 Apart from these major uses of the CES, the food (quantity) consumption data are used to study the level of intake of different nutritients for populations of different regions and disparities therein. Further, the estimated budget shares of a commodity at different MPCE levels facilitates the study of consumption elasticity or responsiveness of demand for the commodity to change in purchasing power.

1.3 Reports of the 68th round CES

1.3.1 The results of the NSS 68th round survey on household consumer expenditure are planned for release in six reports. The titles of these reports are:

1. Level and Pattern of Consumer Expenditure, 2011-122. Household Consumption of Various Goods and Services in India, 2011-123. Public Distribution System and Other Sources of Household Consumption, 2011-124. Energy Sources of Indian Households for Cooking and Lighting, 2011-125. Nutritional Intake in India, 2011-126. Household Consumer Expenditure across Socio-Economic Groups, 2011-12

1.4 Contents of this report

1.4.1 This report investigates the variation in level and pattern of consumer expenditure over various socio-economic groups of households. Households are categorised into different socio-economic groups on the basis of (i) social group (ii) household (occupation) type, and, in rural areas, also by (iii) size of land possessed.

1.4.2 The classification of social groups in both rural and urban areas is: Scheduled Tribes (ST); Scheduled Castes (SC); Other Backward Classes (OBC); and Others.

1.4.3 Six broad economic groups or household types (in NSS terminology) are distinguished on the basis of major source of livelihood in the rural areas and four in the urban areas.

The six household types in rural areas are: self-employed in agriculture; self-employed in non-agriculture; regular wage/salary earning; casual labour in agriculture; casual labour in non-agriculture; and others.

Introduction 3


Note that up to the NSS 66th round, there were five rural household types: self-employed in agriculture; self-employed in non-agriculture; agricultural labour; other rural labour; andothers (residual).

The four household types in urban areas are: self-employed; regular wage/salary earning; casual labour; and others. 1.4.4 The six size classes used for classification of rural households by land-possessed are:

4 Chapter One


may be kept in mind, therefore, that the samples of households on which estimates are based may not always be large enough to get estimates of desired accuracy and such estimates are to be used with caution.

1.5 Features of the survey: schedules of enquiry

1.5.1 The schedule of enquiry (“Schedule 1.0”) used in the household consumer expenditure survey used for the survey collects information on household consumption of various goods and services, using appropriate reference periods, with a view to obtaining the household’s Monthly Per Capita consumer Expenditure (MPCE). The schedule also records some particulars of individual household members, such as age, sex and educational level, and some socio-economic characteristics of the household: principal industry-occupation, religion, social group, occupational type, area of land possessed, etc.

1.5.2 The schedules of enquiry used were of two types. The two types had the same item break-up but differed in reference periods used for collection of consumption data. The differences (in reference period) between Schedule Types 1 and 2 are shown in Table T1.

Table T1: Reference periods used for collection of consumption data in Schedule 1.0, Type 1 and Type 2

Cate-gory

Item groupsReference period for

Schedule Type 1 Schedule Type 2

I Clothing, bedding, footwear, education, medical (institutional), durable goods

‘Last 30 days’ and ‘Last 365 days’

Last 365 days

II Edible oil; egg, fish & meat; vegetables, fruits, spices, beverages and processed foods; pan, tobacco & intoxicants

Last 30 days Last 7 days

III All other food, fuel and light, miscellaneous goods and services including non-institutional medical; rents and taxes

Last 30 days Last 30 days

1.5.3 The present report is based on data collected through Schedule Type 2. The data on food, pan, tobacco and intoxicants collected through Schedule Type 2 of this survey differs from that collected in the earlier quinquennial surveys in that a reference period of “last 30 days” was used only for cereals, pulses, milk, sugar and salt, and for all other food items, as well as for pan, tobacco and intoxicants, a reference period of “last 7 days” was used. This was in line with the recommendations of an Expert Group that had been formed for the purpose of suggesting the most suitable reference period for each item of consumption. The Expert Group had noted that a 7-day reference period1 gives somewhat higher estimates of per capita consumption for the item groups for which it is used, and hence for the food group as a whole, as well as of household MPCE (all items) itself, but expected these estimates to be closer to the true consumption levels of households than are obtainable by the usual (30-

1 The measure of household MPCE obtained by using this reference period system is often referred to as Modified Mixed Reference Period MPCE (or MPCEMMRP) to distinguish it from measures of MPCE based on other reference period systems such as Uniform Reference Period (URP) and Mixed Reference Period (MRP).

Introduction 5


day recall period) method.2 Users of the present report interested in studying trends in consumption level over time would need to bear this fact in mind.

1.6 Features of the survey: scope and coverage

1.6.1 Geographical coverage: The survey covered the whole of the Indian Union except (i) interior villages of Nagaland situated beyond five kilometres of the bus route and (ii) villages in Andaman and Nicobar Islands which remain inaccessible throughout the year.

1.6.2 Population coverage:

1. 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.

2. 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, paragraph 2.3.1, for definition of household). A foreign national who had become an Indian citizen for all practical purposes was, however, covered.

3. 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.

4. 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. Convicted prisoners undergoing sentence were outside the coverage of the survey.

1.6.3 Sample size

1.6.3.1 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, the number of villages surveyed in the Central sample was 7,469 and the number of urban blocks surveyed was 5,268. This document is based on the estimates obtained from the Central sample only.

1.6.3.2 Second-stage units: For the consumer expenditure survey, from each sample village and urban block, two samples of 8 households each were selected for canvassing Schedule Type 1 and Schedule Type 2. The total number of households in which Schedule 1.0 was canvassed was 1,19,378 in rural India and 83,935 in urban India.

2 See NSS Report No. 475: Results of a Pilot Survey on Suitability of Different Reference Periods for Measuring Household Consumption.

6 Chapter One


1.6.3.3 Table T2 shows the numbers of villages and urban blocks surveyed, and, for each of the two schedule types, the numbers of rural and urban sample households in which the consumer expenditure schedule was canvassed.

Table T2: Number of villages/blocks surveyed and number of households surveyed for Schedule 1.0 Type 1 and Type 2: NSS 68th round, Central sample

State/UT

no. of fsu’s (villages/blocks)

surveyed

no. of sample households

Sch. Type 1 Sch. Type 2

rural urban rural urban rural + urban rural urbanrural + urban

(1) (2) (3) (4) (5) (6) (7) (8) (9)Andhra Pradesh 491 372 3927 2972 6899 3925 2971 6896Arunachal Pradesh 136 76 1072 608 1680 1066 608 1674Assam 326 104 2608 832 3440 2607 832 3439Bihar 414 159 3312 1270 4582 3310 1270 4580Chhattisgarh 180 92 1435 734 2169 1440 734 2174

Delhi 8 120 64 887 951 63 882 945Goa 20 36 160 287 447 159 288 447Gujarat 214 215 1712 1714 3426 1712 1717 3429Haryana 178 146 1424 1167 2591 1423 1166 2589Himachal Pradesh 208 48 1658 383 2041 1657 383 2040

Jammu & Kashmir 254 171 2032 1351 3383 2032 1355 3387Jharkhand 220 123 1757 983 2740 1757 980 2737Karnataka 256 256 2048 2046 4094 2048 2048 4096Kerala 326 232 2604 1855 4459 2608 1854 4462Madhya Pradesh 342 248 2736 1981 4717 2735 1981 4716

Maharashtra 504 504 4032 4011 8043 4031 4013 8044Manipur 172 148 1376 1184 2560 1376 1184 2560Meghalaya 107 52 856 403 1259 856 404 1260Mizoram 80 112 640 896 1536 640 896 1536Nagaland 84 44 672 352 1024 672 352 1024

Orissa 372 132 2973 1053 4026 2974 1052 4026Punjab 194 196 1552 1566 3118 1552 1566 3118Rajasthan 323 195 2579 1549 4128 2579 1552 4131Sikkim 76 20 608 160 768 608 160 768Tamil Nadu 416 416 3319 3328 6647 3319 3327 6646

Tripura 164 68 1312 544 1856 1312 544 1856Uttar Pradesh 740 388 5916 3099 9015 5915 3099 9014Uttarakhand 131 92 1048 735 1783 1048 734 1782West Bengal 446 344 3568 2747 6315 3566 2746 6312A & N Islands 35 36 279 287 566 278 288 566

Chandigarh 8 31 64 248 312 64 248 312Dadra & N. Haveli 12 12 96 96 192 96 94 190Daman & Diu 8 8 64 64 128 64 64 128Lakshadweep 8 16 64 127 191 63 128 191Puducherry 16 56 128 448 576 128 448 576All-India 7469 5268 59695 41967 1016 62 59683 41968 101651


Chapter Two

Concepts and Definitions

2.1 Conceptual framework

2.1.1 Reference period: The consumption of any good or service by a household or person occurs in the form of a flow over time. The survey may need to record the volume of consumption over a short period such as a day, or a long period such as a year. The time period for which consumption is recorded is called the reference period. It may vary from item to item. Because the respondents are asked to recall and report the volume of consumption, the reference period is also called the recall period.

2.1.2 Household consumer expenditure: The expenditure incurred by a household on domestic consumption during the reference period is the household's consumer expenditure. Expenditure incurred towards productive enterprises of households is excluded from household consumer expenditure. Also excluded are expenditure on purchase and construction of residential land and building, interest payments, insurance premium payments, payments of fines and penalties, and expenditure on gambling including lottery tickets. Money given as remittance, charity, gift, etc. is not consumer expenditure. However, self-consumed produce of own farm or other household enterprise is valued and included in household consumer expenditure. So are goods and services received as payment in kind or free from employer, such as accommodation and medical care, and travelling allowance excluding allowance for business trips.

2.1.2.1 For articles of food (including pan, tobacco and intoxicants) and fuel, household consumption is measured by the quantity of the article actually used by the household during the reference period, irrespective of the expenditure incurred on it. For articles of clothing and footwear, consumption by a household is considered to occur at the moment when the article is brought into maiden or first use by any household member. 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.

2.1.2.2 For evaluating household consumption of all other items, a different approach is followed: the expenditure made by the household during the reference period for the purchase or acquisition of goods and services, regardless of when the goods and services are used and by whom, is considered as household 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.

8 Chapter Two


2.1.2.3 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. Normally, transfers of food, fuel, clothing and footwear made by a household as charity, loan advance, etc. are not considered as consumption of that household, since consumption out of all transfer receipts of these items have to be included. However, meals prepared in a household and served to non-household members are 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 are also recorded in the purchaser household. This procedure of recording cooked meals served to others in the expenditure of the serving households leads to bias-free estimates of average per capita consumption as well as total consumer expenditure.

2.1.2.4 All goods and services received as payment in kind or perquisites are included in the consumption of the recipient household as goods and services received in exchange of services, except for meals received from other households’ kitchens.

2.1.2.5 To simplify data collection, consumption of food processed in the home from one “item” into another, such as milk converted into curd or butter, vegetables converted into pickles, and rice converted into liquor are recorded in the survey against the primary or ingredient item(s), such as milk, instead of the item in which form it is consumed (e.g. curd). For some item groups such as intoxicants, this procedure leads to an underestimation of consumption with a corresponding overestimation of the item groups of the major ingredients, such as cereals.

2.1.3 Value of consumption: For items of food, pan, tobacco, intoxicants, fuel, clothing and footwear, this term is not synonymous with expenditure incurred by the household on the item, and the following rules of valuation are specified. 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.

2.2 Monthly Per capita Consumer Expenditure (MPCE)

2.2.1 Normally, the concept of per capita income – or per capita (overall) expenditure, if income data are not available – is used for comparison of average living standards between countries, between regions, and between social or occupational groups. For studies of poverty and inequality within populations, however, average income or average expenditure is not enough. One needs to assign a value that indicates level of living to each individual, or at least

Summary of Findings 9


to each household, in a population in order to know the level of inequality in living standards of the population, or the proportion living in poverty.2.2.2 The NSS concept of MPCE, therefore, is defined first at the household level (household monthly consumer expenditure ÷ household size). This measure serves as the indicator of the household’s level of living.

2.2.3 Next, each individual’s MPCE is defined as the MPCE of the household to which the person (man, woman or child) belongs. This assigns to each person a number representing his or her level of living. The distribution of persons by their MPCE (i.e., their household MPCE) can then be built up, giving a picture of the population classified by economic level.

2.3 Other concepts and definitions

2.3.1 Household: A group of person 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 that 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. Under-trial prisoners in jails and indoor patients of hospitals, nursing homes, etc., are considered as members of the households to which they last belonged.

2.3.2 Household size: The size of a household is the total number of persons in the household.

2.3.3 Household type: The household type, based on the means of livelihood of a household, is decided on the basis of the sources of the household's income during the 365 days preceding the date of survey. For this purpose, only the household's income (net income and not gross income) from economic activities is to be considered; but the incomes of servants and paying guests are not to be taken into account.

In rural areas, a household may belong to any one of the following six household types:self-employed in agriculture, self-employed in non-agriculture, regular wage/salary earningcasual labour in agriculture, casual labour in non-agriculture, and others.

For urban areas, the household types are: self-employed; regular wage/salary earning; casual labour and others.

10 Chapter Two


2.3.4 Social group: Four social groups were distinguished - Scheduled Tribe (ST), Scheduled Caste (SC), Other Backward Class (OBC) and Other (residual) households. In case different members of a household belong to different social groups, the group to which the head of the household belongs was considered the social group of the household.

2.3.4.1 It is important to note that the social group reported for the head of any given household was taken to be the social group of all members of that household. Information recorded in this regard was based entirely on the response of the informant and not ascertained from any official list of social groups.

2.3.5 Land possessed: The area of land-possessed (in hectares) includes land owned, leased in, and land neither owned nor leased in (otherwise possessed), but excludes land leased out.

2.3.5.1 The six classes of ‘size of land possessed’ used in this report, are households having land (i) less than 0.01 hectare, (ii) between 0.01 hectare and 0.40 hectare, (iii) between 0.41 hectare and 1.00 hectare, (iv) between 1.01 hectares and 2.00 hectares, (v) between 2.01 hectares to 4.00 hectares and (vi) more than or equal to 4.01 hectares. The above size classes of land-possessed are similar to the ones used in earlier rounds and have correspondence with the class intervals adopted in the Agricultural Censuses of India.

2.3.6 Percentiles and fractiles of an MPCE distribution: For any number p between 0 and 100, the MPCE level such that p% of the population lies below it is called the pth percentile of the MPCE distribution (over persons). For any fraction f between 0 and 1, the MPCE level such that 100f% of the population lies below it is called the fth fractile of the MPCE distribution. Thus the 0.5th fractile is simply the 50th percentile (the median) of the distribution and the 0.05th fractile is simply the 5th percentile, the 0.1th fractile is the 10th

percentile, and so on.

2.3.6.1 In this report fractile classes are usually referred to by the end points in percentile form. Thus ‘0-5%’ refers to the bottom 5% of population ranked by MPCE, ‘5-10%’ to the next 5% of population ranked by MPCE, and so on.

2.3.7 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.

NOTES ON COVERAGE OF DIFFERENT CONSUMPTION ITEMS

Beverages, refreshments, etc.: This stands for “beverages, refreshments and processed food”. It includes tea, coffee, mineral water, soft drinks, fruit juice (not prepared at home),



soda water, other beverages such as cocoa, biscuits, cakes, pastries, pickles, sauce, jam, jelly, and other salted refreshments and sweets not prepared at home. Refreshments prepared at home are not included here. Instead, the ingredients of the refreshments (such as flour, sugar, milk, etc.) are accounted under “cereals”, “sugar”, etc. Food purchased in the form of cooked meals is also included in “processed food”.

Cereals: Note that household consumption of cereals does not include consumption of cereals by livestock belonging to the household.

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 and sweet potato consumed as substitutes for cereals are not, however, shown here. These are included in “vegetables”.

Clothing and bedding: This category includes bedding (pillows, quilts, mattresses, mosquito nets, etc.), as well as rugs, blankets, curtains, towels, mats, cloth for upholstery, etc. It excludes footwear and raincoats. Expenditure on tailor-made clothing excludes tailoring charges, which are accounted in “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. Livery supplied by the employer is taken into account in household consumption of clothing even if used during duty hours only.

Conveyance: This includes expenditure incurred on account of journeys undertaken and/or transportation of goods made by any means of conveyance. 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.

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 (both first-hand and second-hand) and expenditure on repair and construction of household durables. For land and residential building, only expenditure on repair and construction is included. Durable goods include furniture and fixtures, “entertainment” durables such as radios, TV, VCR/VCP/DVD players, tape recorders and CD players, cameras, musical instruments, jewellery and ornaments, crockery and utensils, cooking and other household appliances such as fans, air conditioners, air

12 Chapter Two


coolers, sewing machines used for household work, washing machines, stoves, pressure cookers, fridges, water purifiers, electric irons, heaters, toasters and ovens, household transport equipment including two-wheelers, four-wheelers and their parts, therapeutic appliances, clocks, watches, computers for household use, mobile phone handsets, and bathroom and sanitary equipment.

Edible oil: Edible oils used for toilet purpose by the household are not included here.

Education: This includes expenditure on goods purchased for the purpose of education, viz., books and journals (first-hand or second-hand), newspapers, stationery, educational CD, etc, and also magazines, novels and other fiction. It also includes fees paid to educational institutions (e.g., schools, colleges, universities, etc.) on account of tuition and other fees like game fees, library fees, etc., and payment to private tutors. Fees for shorthand and typing courses, fees for music, dancing and swimming lessons, and fees for training in nursing, physiotherapy, etc., are included. Occasional payments to the school fund made on account of charities, and “donations” generally, are not included here, unless they are charged by the educational institution as compulsory payments.

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/VCD/DVD players, 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.

Footwear: This includes charges paid to a cobbler for getting a pair of shoes or other footwear made.

Gram: This includes gram products such as sattu obtained by frying and powdering of gram (whole grain). Besan made out of gram is, however, not included here, but in “other pulse products”.

Medical expenses: This includes expenditure on medicine of different types and on medical goods; also, payments made to doctor, nurse, etc., as professional fees and those made to hospital, nursing home, etc. for medical treatment, and expenditure incurred for clinical tests, including X-rays, ECG, pathological tests, etc.

Milk and milk products: Milk products include ghee, butter, curd, etc. Milk used in home preparation of sweetmeats, etc., is also accounted here. This category also includes those baby foods of which the principal constituent is milk. Further, milk (liquid) includes ice-cream of which the major component is milk.

Miscellaneous goods: These include spectacles, torches, locks, umbrellas, raincoats, lighters, toilet articles, other non-food household consumables including washing and cleaning requisites, non-durable electrical goods, flowers and plastic goods.



Other consumer services: This includes expenditure on domestic servants, cooks, attendants, sweepers, barbers and beauticians, laundry, ironing, tailors, priests, legal services, telephone charges, postal charges, grinding charges, and repair charges for non-durable goods. Apart from conveyance, it excludes the consumer services coming under “entertainment”.

Pan: This includes, pan (betel leaves), supari, lime, katha, other ingredients of “finished” pan, and pan purchased in finished form.

Rent: Rent includes house and garage rent, residential land rent and other consumer rent.

2.4 A note on data comparability

2.4.1 NSS reports on differences in level of consumption among socio-economic groups, from the 66th round (2009-10) onwards, are based on the Modified Mixed Reference Period method of MPCE measurement (see footnote to “reference period” in paragraph 1.5.3). Earlier reports of NSS on this subject were based on consumption data collected with a uniform reference period of 30 days. In view of what has been said in Chapter One, paragraph 1.5.3, this would mean that estimates of average MPCE from this report and that of the 66th round are based on a method of MPCE measurement giving slightly higher values of MPCE than the earlier method. The exact magnitudes of the differences in average and distribution of MPCE obtained in the 68th round survey by different approaches to MPCE measurement involving different reference periods are available in NSS Report No.555: Level and Pattern of Consumer Expenditure, 2011-12.

Draft NSS Report No. 562: Household Consumer Expenditure across Socio-Economic Groups, 2011-12

Chapter Three

Summary of Findings

3.0.1 This chapter discusses the main findings of the survey relating to differences in consumption among socio-economic groups, under the following heads:

1. Average MPCE (monthly per capita consumer expenditure) across social groups2. Average MPCE across household types3. Average MPCE across social groups within each household type 4. Average MPCE across household land-possessed size classes (rural)5. Distribution of MPCE: variation across socio-economic groups6. Pattern of consumption: variation across socio-economic groups7. Trends in MPCE differences among social groups

3.1 Average MPCE across social groups

3.1.1 Statement 3.1 presents statewise average rural and urban MPCE across social groups. The large difference that exists between average rural MPCE and average urban MPCE for all social groups taken together is seen to prevail within social groups as well.

3.1.2 At national level it is interesting to note that while in the rural sector the average MPCE of the ST group (Rs.1122) is less than that of the SC group (Rs.1252), the inequality is reversed for the urban sector with the MPCE of STs (Rs.2193) exceeding that of the SCs (Rs.2028) but less than the OBCs (Rs.2275). The average MPCE of ‘Others’ at all-India level (Rs.1719 in rural and Rs.3242 in urban) is more than the all-groups average in both sectors.

3.1.3 It is seen that in rural areas of some North-Eastern States like Meghalaya, Mizoram and Nagaland, where the proportion of ST population is more than 90%, the average MPCE is higher than the all-India rural average MPCE.

3.1.4 Andhra Pradesh, Haryana, Kerala, Maharashtra, Tamil Nadu and Punjab are seen to be the major States where the average MPCE of the rural SC population is more than the all-India rural average MPCE.



Statement 3.1: State/UT-wise average MPCE (Rs.) by social group for each sector

State/UT rural urbanST SC OBC Others all# ST SC OBC Others all#

(1) (2) (3) (4) (5) (6) (8) (9) (10) (11) (12)Andhra Pradesh 1366 1548 1752 2267 1754 2827* 2283 2479 3080 2685Arunachal Pradesh 1793 2067 1305 1804 1782 2967 2132 1582 2338 2654Assam 1260 1322 1240 1173 1219 1979 2274 2275 2158 2189Bihar 1036* 996 1104 1345 1127 1442* 1305 1439 1849 1507Chhattisgarh 940 1000 1090 1308 1027 1601 1594 1545 2980 1868Delhi 1996 1835 3704 3282 2762 2857* 2173 2919 3739 3298Goa 1844 1362 2436 2496 2408 3769* 1965 3093 3107 3051Gujarat 1156 1374 1582 1988 1536 2041* 2359 2086 2946 2581Haryana 1666* 1710 2033 2531 2176 4604* 2164 2815 4669 3817Himachal Pradesh 2028 1660 1904 2255 2034 3725* 2817 3291 3329 3259Jammu & Kashmir 1698 1753 1720 1754 1743 2487 1955 2885 2552 2485Jharkhand 955 1005 1017 1120 1006 2148 1357 1762 2619 2018Karnataka 1278 1396 1626 1632 1561 1875 2258 2598 4378 3026Kerala 1987* 1902 2631 3165 2669 3389* 2408 2842 5376 3408Madhya Pradesh 927 1036 1229 1507 1152 2127 1694 1732 2657 2058Maharashtra 1160 1506 1672 1781 1619 2167* 2538 2857 3699 3189Manipur 1526 1251 1523 1295 1502 1748* 1506 1455 1532 1483Meghalaya 1475^ 1054 1997 1514 1475 2330 2359 2078 2816 2436Mizoram 1668^ 2653 917 1391 1644 2575^ 1717 2139 3022 2568Nagaland 2053^ - 2468 - 2059 2331 2175 1130 1988 2284Orissa 792 934 1062 1250 1003 1587 1234 1728 2589 1941Punjab 2587* 1785 2422 3009 2345 3454* 2024 2482 3209 2794Rajasthan 1211 1389 1680 2119 1598 2291* 1974 2144 3055 2442Sikkim 1581 1458 1554 1785 1565 2796 2352 2736 1937 2608Tamil Nadu 1245* 1451 1801 1865 1693 1893* 2126 2616 4210 2622Tripura 1237 1304 1396 1486 1334 2370 1680 1934 2451 2144Uttar Pradesh 1111* 1004 1141 1439 1156 1661* 1523 1580 2886 2051Uttarakhand 1500* 1435 1639 1887 1726 3163* 1880 1871 2608 2339West Bengal 1070 1210 1385 1357 1291 2539* 1878 2175 2781 2591A & N Islands 2452 - 3215 2644 2712 3385* 6928 5335 4549 4642Chandigarh 1862* 3477 1644 3079 2633 6035* 2202 3567 3776 3357Dadra & N. Haveli 1026^ 3190 1743 2295 1123 1914 1682 3239 2805 2671Daman & Diu 2509 2516 2133 2659 2436 2221 2633 2412 2367 2388Lakshadweep 2921^ - - 3235 2924 3210^ 2747 5306 7407 3287Puducherry 2006* 1952 2275 1903 2173 933* 2691 3255 3465 3216all-India 1122 1252 1439 1719 1430 2193* 2028 2275 3242 2630

# including cases with social group not recorded Ref: Appendix A, Tables 2-R & 2-U* ST population share less than 5% ^ ST population share more than 90%

3.1.5 For the OBC group, average MPCE of the rural population of Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Punjab, Rajasthan and Tamil Nadu is above the all-India average rural MPCE. In urban India a similar phenomenon is seen in only three major States – Maharashtra, Kerala, and Haryana.

16 Chapter Three


3.2 Average MPCE across household types

3.2.1 Statement 3.2 presents average MPCE (rural and urban) by household type for each State/UT. It is observed that among the rural household types, the highest average MPCE was that of the ‘regular wage/salary earning’ (Rs.2002), followed by the ‘others’ (Rs.1893) and the ‘self-employed in non-agriculture’ (Rs.1509), the ‘self-employed in agriculture’ (Rs.1436), ‘casual labour in non-agriculture’ (Rs.1238) and ‘casual labour in agriculture’(Rs.1159).

Statement 3.2: Average MPCE (Rs.) by household type for each sector of each State/UT

State/UT

rural urbanself-empl. in agr.

self-empl. in non-agr.

reg. wage/sal.earning

casual lab. agr.

casual lab. in

non-agr.others all* self-empl.


casual lab. others all*

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)Andhra Pradesh 1725 1787 2331 1571 1623 2316 1754 2568 2979 1766 3405 2685Arunachal Pradesh 1517 2189 2693 874 1296 1528 1782 2608 2781 2138 2433 2654Assam 1156 1265 1442 941 1152 1711 1219 1818 2701 1871 2112 2189Bihar 1176 1168 1554 966 998 1241 1127 1404 1682 1172 1834 1507Chhattisgarh 1026 1167 1690 860 906 1252 1027 1945 2412 1046 2413 1868Delhi 2591 2393 3097 - 2267 1886 2762 3417 3131 1684 6223 3298Goa 1629 2459 2384 2398 2146 5015 2408 2934 3124 1957 3772 3051Gujarat 1580 1831 2000 1232 1251 1670 1536 2511 2730 1513 3658 2581Haryana 2416 2239 2635 1593 1446 2731 2176 3414 4346 2019 6098 3817Himachal Pradesh 1993 1984 2465 1737 1623 2518 2034 3187 3513 1680 3664 3259Jammu & Kashmir 1607 1869 2126 1382 1376 2358 1743 2325 2925 1444 3040 2485Jharkhand 937 1092 1559 900 930 1179 1006 1911 2332 1258 2369 2018Karnataka 1631 1706 2086 1231 1481 1980 1561 2572 3895 1502 5505 3026Kerala 2989 2932 3029 1933 2081 3569 2669 3798 3815 2076 4309 3408Madhya Pradesh 1277 1213 1446 889 916 2063 1152 1715 2770 1158 3066 2058Maharashtra 1682 1786 2106 1283 1299 2725 1619 3134 3323 1689 5089 3189Manipur 1304 1520 1980 1598 1409 1677 1502 1373 1820 1178 1271 1483Meghalaya 1298 1726 1820 1262 1439 1846 1475 2129 2649 1614 3024 2436Mizoram 1376 2125 2448 1088 1443 2204 1644 2415 2888 1518 2074 2568Nagaland 1687 2481 2624 - 2160 2030 2059 2067 2551 1282 1987 2284Orissa 986 1130 1462 812 859 1270 1003 1526 2644 1133 2607 1941Punjab 3062 2274 2303 1607 1688 3238 2345 2811 2762 1755 4653 2794Rajasthan 1656 1777 1954 1265 1278 1870 1598 2225 2701 1454 4604 2442Sikkim 1322 1760 2058 1434 1454 2345 1565 2379 2697 1698 3265 2608Tamil Nadu 1812 1928 2257 1343 1680 2184 1693 2634 3011 1696 3223 2622Tripura 1376 1514 1901 957 1150 1632 1334 1828 2596 1243 3178 2144Uttar Pradesh 1222 1161 1472 936 974 1366 1156 1746 2893 1164 2860 2051Uttarakhand 1739 1746 2104 1408 1229 2279 1726 2085 2729 1393 3159 2339West Bengal 1402 1403 1849 1022 1192 1510 1291 2257 3130 1374 4019 2591A & N Islands 1984 2418 3511 2343 2084 3590 2712 3740 5379 2666 3296 4642Chandigarh 2240 1991 2413 - 3526 4881 2633 2397 3950 1549 4930 3357Dadra & N. Haveli 1052 1523 1310 542 953 744 1123 2907 2618 2053 - 2671Daman & Diu 1693 1885 2836 1881 4887 2319 2436 2197 2531 1989 4335 2388Lakshadweep 2202 2717 3715 1329 2340 2638 2924 2341 3990 2352 2796 3287Puducherry 3043 2483 2611 1470 1777 2164 2173 3913 3228 1990 4087 3216all-India 1436 1509 2002 1159 1238 1893 1430 2415 3062 1514 3734 2630

* including cases with household types not recorded Ref: Appendix A, Tables 1-R & 1-U



3.2.2 In the rural sector, average MPCE of ‘others’ exceeded the state average by 30% or more in 6 major States: Madhya Pradesh (79% higher than the State average), Maharashtra (68% higher), Assam (40% higher), Punjab (38% higher), Kerala (34% higher) and Andhra Pradesh (32% higher).

3.2.3 Average MPCE of the ‘regular wage/salary earning’ in rural areas exceeded the state average by 40% or more in 4 major States: Chhattisgarh (65% higher than the State average), Jharkhand (55% higher), Orissa (46% higher), and West Bengal (43% higher).

3.2.4 In rural Andhra Pradesh and Tamil Nadu, average MPCE of the ‘regular wage/salary earning’ and ‘others’ were somewhat close and higher than average MPCE of all other types.

3.2.5 In urban India, average MPCE was highest (Rs.3734) for the ‘other’ category, followed by the ‘regular wage or salary earning’ (Rs.3062). The ‘self-employed’ and ‘casual labour’ had a lower average MPCE than the all-India urban average (Rs.2630).

3.2.6 The relative positions of the four urban household types in terms of average MPCE closely followed the all-India pattern in most major States. The average MPCE of the regular wage-salaried type was as high as that of the ‘others’ category in Orissa and Uttar Pradesh, and nearly as high in Chhattisgarh and Jharkhand.

3.3 Average MPCE across social groups within each household type

3.3.1 Average MPCE of households belonging to each household type and social group combination is given for each State and UT in Appendix A, Tables 6-R and 7-U. The all-India estimates are shown in Statement 3.3.

Statement 3.3: Average MPCE (Rs.) by household type and social group for each sector: all-India

sector household typesocial group

ST SC OBC Others all*(1) (2) (3) (4) (5) (6) (7)

rural

self-empl. in agriculture 1108 1218 1395 1761 1436self-empl. in non-agriculture 1260 1314 1506 1694 1509regular wage/salary earning 1735 1803 1984 2240 2002casual labour in agriculture 964 1131 1241 1179 1159casual labour in non-agri. 1010 1181 1303 1366 1238others 1307 1445 1879 2346 1893all* 1122 1252 1439 1719 1430

urban

self-employed 1814 1770 2088 2936 2415regular wage/salary earning 2762 2493 2700 3582 3062casual labour 1283 1403 1538 1650 1514others 2704 2499 3263 4565 3734all * 2193 2028 2275 3242 2630

*including cases with either household types or social group not recorded Ref: Appendix A, Tables 6-R & 7-U

18 Chapter Three


3.3.2 In both rural and urban sectors, the relative positions in respect of average MPCE of the different household types observed in the entire population are closely followed within the individual social groups. Inter-household-type variation in average MPCE is greatest among the social group ‘Others’ and least among SCs.

3.3.3 Inter-social-group variation among individual household types is, in the rural sector, greatest among the ‘others’ category and least among ‘casual labour in agriculture’ households. In the urban sector, inter-social-group variation is least among ‘casual labour’ households and greatest among the ‘others’ category.

0

500

1000

1500

2000

2500

ST SC OBC Others all groups

Ave

rage

MP

CE

(R

s.)

social groups

Fig. 3.1R: Average MPCE (Rs.) by household type for each social group: all-India, rural

self-empl. in agriculture

self-empl. in non-agriculture

regular wage/salary earning

casual labour in agriculture

casual labour in non-agri.

others

all

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

ST SC OBC Others all groups

Ave

rage

MP

CE

(R

s.)

social groups

Fig. 3.1U: Average MPCE (Rs.) by household type for each social group: all-India, urban

self-employed

regular wage/salary earning

casual labour

others

all



3.4 Average MPCE across household land-possessed size classes (rural)

3.4.1 Average MPCE of rural households classified into six size classes of land-possessed is shown for each State/UT and all-India in Statement 3.4 (see also Appendix A, Table 6-R).

Statement 3.4: Average rural MPCE (Rs.) by size class of land-possessed for each state/UT

State/UT size class of land-possessed (hectares) 4 hectares) and lowest (Rs.1341) in ‘0.41-1.00 hectares’ size class, indicating a

20 Chapter Three


strong positive association between MPCE and land-possessed (for households possessing land more than 1 hectare).

3.4.3 The association between size of land-possessed and average MPCE in the rural sector is, by and large, seen to prevail in most major States, especially if the lowest class was left out. It is strong in Punjab and Kerala, and also in Haryana and Uttar Pradesh, where the rise in MPCE with size class of land-possessed is steep in the 0.01 to 4 hectares range. The association is noticeably weak in Assam, Bihar and Jharkhand, while an erratic pattern is seen in Karnataka and Rajasthan.

3.4.4 Among the major states, average MPCE of the ‘



3.5.2 Statement 3.5 depicts the all-India distribution of population in each social group over decile classes of the all-India all-social groups MPCE distribution. This means that the “all” (all social groups) population (see columns 6 and 11) is equally distributed over these MPCE classes (approximately 100 per 1000 persons in each class). Note, however, that this is not true of the distributions of population of the individual social groups (columns 2-5 and 7-10).

3.5.3 In Figures 3.2R and 3.2U, which depict the all-India distribution of population in each social group over decile classes of the all-India all-social groups MPCE distribution by means of line diagrams, the MPCE distribution of the ‘all’ category thus becomes a horizontal line, while the lines for ST and SC are downward-sloping (percentage of population in an MPCE

0

50

100

150

200

250

1 2 3 4 5 6 7 8 9 10

per

1000

no.

of

pers

ons

Fig.3.2R: Per 1000 distribution of persons of each social group over decile classes of all-social-groups MPCE distribution : all-India, rural

ST

SC

OBC

Others

All

decile class of all social groups MPCE distribution

0

50

100

150

200

1 2 3 4 5 6 7 8 9 10

per

100

0 no

. of

per

sons

Fig.3.2U: Per 1000 distribution of persons of each social group over decile classes of all-social-groups MPCE distribution : all-India, urban

ST

SC

OBC

others

all

decile class of all social groups MPCE distribution

22 Chapter Three


class falls – more steeply in case of ST in rural areas – as one moves from lower to higher classes), the ‘others’ line is prominently upward-sloping, and the OBC line is downward-sloping for the urban sector but fairly horizontal for the rural.

3.5.4 Table 1 (R & U) of Appendix A gives, for each State/UT and all-India, the distribution of persons of different household types over twelve classes of MPCE. The MPCE classes used are the fractile classes of the sector-State/UT/All-India level distributions of MPCE for the entire population (all social groups taken together).

3.5.5 Statement 3.6 depicts the all-India distribution of population in each household typeover decile classes of the all-India all-household-types MPCE distribution. This means that the “all” (all-household-types) population (see columns 8 and 13) is equally distributed over these MPCE classes (approximately 100 per 1000 persons in each class). Note, however, that this is not true of the distributions of population of the individual household-types (columns 2-7 and 9-12).

Statement 3.6: Per 1000 break-up of persons of each household type by decile class of the all-household-types MPCE distribution

MPCEdecile class

per 1000 no. of persons in the class among persons of household typerural urban

self-empl. in agr.

self-empl.

in non-agr.


casual lab. agr.

casual lab. in non-agr.

others all self-empl.


casual lab. others all

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)1 83 77 35 149 148 79 100 111 41 249 65 1002 92 85 38 145 119 76 100 108 59 207 72 1003 96 95 39 128 120 81 100 116 71 152 66 1004 104 92 64 113 105 92 100 105 93 125 60 1005 104 106 67 111 97 58 100 102 107 87 73 1006 109 95 91 97 96 73 100 99 113 69 93 1007 106 111 93 91 91 96 100 97 121 44 107 1008 107 104 133 76 87 117 100 98 125 37 101 1009 105 116 167 58 81 130 100 89 133 19 140 10010 95 119 272 33 55 196 100 75 138 10 223 100

Ref: Appendix A, Table 1-R &1U

3.5.6 Figures 3.3R and 3.3U depict the all-India distribution of population in each household type over decile classes of the all-India all-social groups MPCE distribution by line diagrams. In the rural sector the line for ‘regular wage/salary earning’ has a markedupward slope, meaning that for these household types, the percentage of population in an MPCE class rises as one moves from lower to higher classes. The line for ‘others’ somewhathas an erratic upward trend. The line for the ‘self-employed in non-agriculture’ has a gentle upward trend, but that of the ‘self-employed in agriculture’ tends to flatten out (as one moves up the MPCE range) and finally drop below the 100 (per 1000) level, and the lines for ‘casual labour in agriculture’ and ‘casual labour in non-agriculture’ have a prominent downward slope throughout.



3.5.7 In the urban sector the line for ‘casual labour’ falls steeply, throughout the MPCE range, down from a level of 249 per 1000 in the bottom MPCE class. The ‘regular wage/salaried’ line has a gentle upward movement and the ‘others’ line a slightly erraticupward trend. The line for the ‘self-employed’, who have a lower-than-average MPCE in urban India, has a downward slope from the sixth MPCE class onwards.

3.5.8 Table 3-R of Appendix A gives, for each State/UT and all-India, the distribution of rural population in each of the six land-possessed size classes over twelve classes of MPCE. The MPCE classes used are again the fractile classes of the State/UT/all-India level distributions of MPCE for the entire rural population.

0

50

100

150

200

250

300

1 2 3 4 5 6 7 8 9 10

per

1000

no.

of

pers

ons

Fig.3.3R: Per 1000 distribution of persons of each household type over decile classes of all-household types MPCE distribution : all-India, rural

self-empl. in agr.self-empl. in non-agr.reg. wage/sal. earn.casual lab. agr.

casual lab. in non-agr.other

decile class of all household type MPCE distribution

0

50

100

150

200

250

1 2 3 4 5 6 7 8 9 10

per

1000

no.

of

pers

ons

Fig.3.3U: Per 1000 distribution of persons of each household type over decile classes of all-household types MPCE distribution : all-India, urban

self-empl.

reg. wage/sal. earn.casual lab.

others

all

decile class of all household type MPCE distribution

24 Chapter Three


Statement 3.7: Per 1000 break-up of persons of each size-classes by decileclass of the all-land-possessed-size-classes MPCE distribution: rural

MPCEdecile class

per 1000 no. of persons in the class among persons of size class of land-possessed



3.5.10 Figure 3.4 depicts the distributions of all-India rural population in each land-possessed size class over decile classes of the all-India all-size-classes MPCE distribution by means of line diagrams. It is clear from Figure 3.4 that for the top land-possessed size class(4.01+), the proportion of persons in an MPCE class increases steadily, and for the next size class (2.01-4.00), somewhat erratically, as one moves to higher MPCE classes. The population in the size class 0.41-1.00 appears to have a lower proportion of persons in the highest MPCE class than the population of any other size class of land possessed.

3.6 Pattern of consumption: variation across socio-economic groups

3.6.1 Table 9 (R & U) of Appendix A gives, at all-India level, for each socio-economic category of households (that is, each combination of social group, household type and size class of land-possessed in rural areas, and each combination of household type and social group in urban areas) the break-up of monthly per capita food expenditure by 14 groups of food items. Table 10 gives, likewise, the break-up of monthly per capita non-food expenditure by 12 groups of non-food items.

3.6.2 Statements 3.8, 3.9 and 3.10 investigate, respectively, the variation over social groups, household types, and land-possessed size classes, in the percentage composition of MPCE by 5 broad groups of food items and 8 broad groups of non-food items.

Statement 3.8: Percentage break-up of average MPCE over item groups for each social group of households: rural and urban

item group rural UrbanST SC OBC Others all* ST SC OBC Others all *

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)cereals 13 11 11 10 11 8 8 7 6 7milk & milk

products 5 7 8 9 8 6 7 7 7 7

egg, fish & meat 6 5 4 5 5 5 4 4 3 4vegetables 8 7 7 6 7 6 6 5 4 5other food items 24 24 23 21 23 21 22 22 20 21food: total 56 55 53 51 53 44 47 45 40 43

pan, tobacco & intoxicants 5 4 3 3 3 3 2 2 1 2

fuel and light 9 9 8 7 8 7 8 7 7 7clothing & bedding 6 6 6 6 6 6 5 5 5 5education 2 3 3 4 3 6 6 6 8 7medical 4 7 7 7 7 5 6 6 5 6conveyance 3 3 4 5 4 6 5 6 7 7other cons. services 4 4 4 4 4 5 5 5 6 6other non-food items 10 10 12 12 12 19 17 18 20 19non- food: total 44 45 47 49 47 56 53 55 60 57

all 100 100 100 100 100 100 100 100 100 100

MPCE (Rs.) 1122 1252 1439 1719 1430 2193 2028 2275 3242 2630

*including cases with social groups not recorded Ref: Appendix A, Tables 9 & 10

26 Chapter Three


3.6.3 Generally, the variation in percentage composition of MPCE is in tune with the average MPCE of the different socio-economic categories under examination. Thus(Statement 3.8) the categories with relatively high average MPCE (such as the social group Others) are seen to allocate a greater share of their consumer expenditure to non-food. The share of non-food varies, in fact, over social groups from 44% for the ST group to 49% forOthers in the rural sector and from 53% for SC to 60% for Others in the urban sector.

3.6.4 Among rural household types (Statement 3.9), the share of non-food in MPCE varies from 43% for ‘casual labour in agriculture’ to 53% for ‘other’ households. Among urban household types, the share of non-food is between 56% and 60% for all types except ‘casual labour’, for which it is 48%.

3.6.5 Variation across household types is very noticeable in the share of MPCE going to cereal consumption. Among rural households cereals accounted for 12% of consumer expenditure for ‘casual labour in agriculture’ households, 8% for ‘others’ and ‘regular wage/salary earning’ households, and 11% for the other three household types. Among urban households ‘casual labour’ households spent 10% of their consumer expenditure on cereals, the self-employed spent 7%, the ‘regular wage/salary earning’ spent 6%, and ‘others’, 5%.

Statement 3.9: Percentage break-up of average MPCE over item groups for each household type: rural and urban

item group

rural urbanself-empl. in agr.

self-empl. in non-agr.

reg. wage/sal. earning

casual lab. agr.

casual lab. in

non-agr.others all*

self-empl.

reg. wage/sal. earning

casual lab. others all*

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)cereals 11 11 8 12 11 8 11 7 6 10 5 7milk & milk

products 10 7 7 6 7 7 8 8 7 6 5 7

egg, fish & meat 4 6 5 6 5 4 5 4 3 5 3 4vegetables 6 6 5 8 7 6 7 5 4 6 3 5other food items 22 23 22 25 24 22 23 20 20 24 23 21food: total 53 53 48 57 55 47 53 44 41 52 40 43

pan, tobacco & intoxicants 3 3 2 4 4 2 3 2 1 4 1 2

fuel and light 8 8 7 9 9 7 8 7 6 8 6 7 clothing &

bedding6 6 6 6 6 5 6 6 5 6 5 5

education 3 4 5 2 2 7 3 7 7 3 11 7medical 7 7 6 6 6 8 7 5 5 6 8 6conveyance 4 5 6 3 3 4 4 7 7 4 6 7other cons. services

4 4 4 4 4 4 4 6 6 4 6 6

other non-food items

11 12 15 10 10 16 12 18 21 14 18 19

non- food: total 47 47 52 43 45 53 47 56 59 48 60 57

all 100 100 100 100 100 100 100 100 100 100 100 100

MPCE (Rs.) 1436 1509 2002 1159 1238 1893 1430 2415 3062 1514 3734 2630

*including cases with household types not recorded Ref: Appendix A, Tables 9 & 10



3.6.6 Among the land-possessed size classes in rural areas, the lowest four size classes (spanning the 0-2 hectares range) show very similar consumption patterns. Beyond this range, consumption patterns show the characteristics of the relatively affluent, with the share of food falling to 52% of MPCE in the 2-4 hectares range and to 47% for the 4.01+ range. The share of cereals, too, falls from 11% to 10% and then to 8% as one moves beyond the 0-2 hectares range. Interestingly, while the share of milk and milk products does not rise above 8% of MPCE for any of the social groups or household types at the all-India level except for the ‘self-employed in agriculture’ (for whom it is 10%), it rises with size of land-possessed in rural India from 7% in the lowest size class to as much as 12% in the 4.01+ range, while the share of vegetables falls from 7% to 5%. Variation across household types in urban area is very noticeable in the share of MPCE going to education: 3% for ‘casual labour’, 7% for ‘regular wage/salary earning’, and 11% for ‘others’. The share of egg, fish and meat in MPCE is 5-6% in the lowest three land-possessed size classes and 2-4% in the higher size classes.

Statement 3.10: Percentage break-up of average MPCE over item groups for each size class of land possessed: all-India, rural

item group size class of land-possessed (hectares)

28 Chapter Three


3.7.2 The ranking of the groups by MPCE has remained the same over the 7-year period 2004-05 to 2011-12 in both rural and urban sectors. In both sectors, ‘Others’ had the highest MPCE, followed by ‘OBC’, over this period. The lowest MPCE was that of the ST group in the rural sector and that of the SC group in the urban. 3.7.3 In the urban sector the relative position of the ST group with respect to the entire population in terms of MPCE improved slightly between 2004-05 and 2011-12 – from 18.5% lower than the all-groups average to 16.6% lower. The SC group showed a moderate improvement – from 27.9% lower than the all-groups average to 22.9% lower. The OBC group, too, showed a moderate improvement in respect of MPCE between 2004-05 and 2011-12. The position of the ‘Others’ group remained more or less the same.

Statement 3.11: Inter-social-group differences in average MPCE: change over time,all-India

social group

percentage difference of average MPCE from average MPCE of all-social-groups population

rural urban

2004-05 2009-10 2011-12 2004-05 2009-10 2011-12

(1) (2) (3) (4) (5) (6) (7)ST -23.7 -17.2 -21.5 -18.5 -9.5 -16.6

SC -15.0 -11.9 -12.4 -27.9 -27.2 -22.9OBC -0.4 -1.6 0.6 -17.2 -15.4 -13.5Others 22.6 21.6 20.2 24.1 24.3 23.3all 0 0 0 0 0 0Source: NSS Report No. 544 (for NSS 61st & 66th round estimates)

3.7.4 In the rural sector the relative position of the SC group with respect to the entire population in terms of MPCE improved perceptibly between 2004-05 and 2011-12 – from 15% lower than the all-groups average to 12.4% lower. The ST group showed a small improvement – from 23.7% lower than the all-groups average to 21.5% lower. The OBC group, too, showed a minor improvement in respect of MPCE between 2004-05 and 2011-12. The ‘Others’ group declined slightly – from 22.6% higher than the all-groups average to 20.2% higher.

Appendix A

Detailed Tables

Appendix Tables A-1

NSS Report No. 562: Household Consumer Expenditure among Socio-Economic Groups, 2011-12

Table 1-R: Average MPCE and per 1000 break-up of persons by fractile class of MPCE for different household types

Rural

fractile class of MPCE

per 1000 no. of persons in the class among persons of household typeestd. no (00) of

households

no. ofsample

householdsself-empl.

in agr.

self-empl. in non-

agr.

reg. wage/sal.

earn.

casual lab. agr.

casual lab. in

non-agr.other all

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Andhra Pradesh

1 51 50 19 57 52 64 50 6527 162

2 31 55 18 69 72 26 49 6209 159

3 108 70 66 123 80 88 99 13244 292

4 97 83 57 128 107 51 100 13728 295

5 100 108 85 114 88 63 102 13860 351

6 120 74 56 101 100 144 99 14763 325

7 94 130 51 102 129 62 100 15049 376

8 108 102 82 93 114 67 99 15332 387

9 109 92 93 98 94 122 100 16560 428

10 89 129 178 74 79 145 100 17007 503

11 39 61 118 30 63 52 50 8969 259

12 55 46 177 11 20 115 50 10307 388

all classes 1000 1000 1000 1000 1000 1000 1000 151556 3925

avg. MPCE (Rs.) 1724.68 1786.71 2331.30 1571.04 1623.11 2315.72 1753.96 - -

estd. no. of persons 167474 88578 53417 173455 51428 17132 551484 - -

no. of sample persons 3980 4629 2246 1979 2008 338 15180 - -

no. of sample hhs 937 1178 582 546 513 169 3925 - -

Arunachal Pradesh

1 64 16 15 273 36 0 51 78 30

2 50 16 20 102 222 175 48 64 28

3 112 100 12 68 322 199 99 150 89

4 131 94 15 100 55 44 103 142 55

5 109 18 121 428 37 50 100 167 86

6 119 54 59 0 75 121 100 157 104

7 95 148 98 0 40 89 100 192 114

8 109 72 107 0 10 45 100 184 125

9 87 114 139 29 90 141 100 198 142

10 71 217 151 0 89 63 100 211 138

11 30 86 106 0 3 72 51 138 67

12 24 65 157 0 21 0 49 124 88

all classes 1000 1000 1000 1000 1000 1000 1000 1807 1066

avg. MPCE (Rs.) 1516.61

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