The Patterns of Consumption Expenditure in Rural Households of Western Odisha of India: An Engel Ratio Analysis

Abstract

The present paper analyses the pattern of consumption expenditure of rural households to show the frequent changes in both food and non-food consumption expenditure due to the changes in income and occupation of the people. Consumption expenditure is increasing due to increase in urbanisation, breaking up of the traditional joint family system, desire for quality food, lack of time which translates into an increased need for convenience. Increasing number of working women, rise in the per-capita income in forcible situations of other dominants, changing lifestyles and increasing level of affluence of the surroundings with lack of saving attitude and appropriate awareness brought a significant changes in the expenditure patterns among the rural communities. The paper defines the income elasticity of expenditure as proxy for income elasticity of quantity demanded for selected food and non-food commodities among different income and occupation class in Western Odisha through an Engel ratio analysis. To examine the impact, the actual distribution of monthly per capita incomes and other selected characteristics of different income classes have been taken into consideration. With this background in this paper an attempt has been made (i) to examine the impact of income and occupation on consumption expenditure among the rural population and (ii) to analyse the factors influencing the rural consumption pattern.