High Rice Prices Lead To Reduced Consumption: Survey


NEW DELHI: Rising prices of rice in the open market prompted households to reduce consumption and rely on ration shops to buy it at controlled rate, shows a government survey.

According to the NSSO survey, Indian families consumed less rice in 2011-12 but their purchases of the commodity under Public Distribution System (PDS) doubled in villages and rose by 66 percent in cities.

The monthly per capita rice consumption in villages was 5.98 kg in 2011-12 compared to 6.38 kg in 2004-05 revealed the National Sample Survey Office's (NSSO) 68th Round Survey of Household Consumption of Various Goods and Services in India.

It found that monthly per capita rice consumption in cities fell to 4.49 kg 2011-12, from 4.71 kg in 2004-05.

However, according to study, the per capita consumption of PDS rice has doubled in villages and risen by 66 percent in cities since 2004-05, implying that the share of PDS purchases in rice consumption has risen substantially.

 

The PDSs is India's food security system which is jointly managed by the Centre and states for the distribution of subsidised food and non-food items, particularly to poor.

The central government provides rice to states at 8.30 per kg for above poverty line (APL) families, 5.65 for below poverty line (BPL) families and 3 per kg to families under Antyodaya Anna Yojana (AAY for poorest of poor). All households are provided 35 kg of grains including rice and wheat every month under PDS.

But since state governments decide the retail prices of commodities, they are generally lower under the PDS than those fixed by the central government.

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Source: PTI