Survey: Monthly expenditure of farm households below rural average
Neeraj Mohan
New Delhi, February 26
The Household Consumption Expenditure Survey for 2022-23, conducted by the Ministry of Statistics and Programme Implementation (MoSPI), brings to light a noteworthy difference in the monthly per capita consumption expenditure (MPCE) between rural and urban dwellers, particularly those engaged in the agriculture sector.
2,61,746 families part of study
MPCE of rural dwellers
Agriculture sectorRs 3,783
Non-agriculture sector Rs 4,159
The MPCE of rural dwellers engaged in the agriculture sector was recorded at Rs 3,783, notably lower than the Rs 6,125 of self-employed and Rs 7,198 of salaried class in the urban areas. The monthly expenditure of rural dwellers who are self-employed in the non-agriculture sector is Rs 4,159 against the Rs 4,474 of casual labourer in urban India, reveals the survey.
HP, Chandigarh top in consumption
- Himachal Pradesh has the highest monthly per capita consumption expenditure (MPCE) in both urban and rural areas among the northern states
- Sikkim, with the expenditure of Rs 7,787 in rural and Rs 12,125 in urban, tops the country
- Among the union territories, Chandigarh reported the highest MPCE in both rural (Rs 7,467) and urban (Rs 12,577) areas, while Ladakh and Lakshadweep reported the lowest figures
- With the MPCE of Rs 2,575 in rural and Rs 4,557 in urban settings, Chhattisgarh is at the bottom in the country
However, the figures reveal that the average MPCE, which indicates the spending power of a household, in rural India is Rs 3,860 against Rs 6,521 in the urban India.
The survey says that the urban-rural consumption divide has narrowed to 71 per cent in 2022-23 from a peak of 91 per cent in 2004-05. With a hike of 164 per cent, the rural average MPCE increased to Rs 3,773 per month in 2022-23 from Rs 1,430 per person in 2011-12. With an increase of 146 per cent, the urban average MPCE went up to Rs 6,459 in 2022-23 compared with Rs 2,630 in 2011-12.
While the average estimated MPCE in 2022-23 stood at Rs 3,773 in rural India and Rs 6,459 in the urban areas, disparities persist despite improvements over the years. While the average MPCE of the Scheduled Tribes and Scheduled Castes in the urban areas is Rs 5,472 and Rs 5,386, respectively, it is higher than the Rs 3,098 and Rs 3,571 MPCE of their rural counterparts. Similarly, urban Other Backward Classes (OBCs) reported a higher MPCE of Rs 6,245 compared to the rural OBCs.
The report reveals that the bottom 5 per cent of India’s rural population, ranked by MPCE, has an average expenditure of Rs 1,373, while it is Rs 2,001 for the same category in the urban areas.
