DETERMINANTS OF CEREAL CONSUMPTION PATTERNS â€“ A COMPARATIVE STUDY OF MAJOR RURAL BLOCKS OF STATES AND INDIA
The significant changes in all the sectors of the economy have a direct impact on the welfare of the people. The leading review of developing country surveys reveals that the income, consumption and saving are the best measures of the economic component of living standards. Out of these three measures the consumption is the macroeconomic variable of our concern for the study as more reliable data are available for it as compared to the other two variables. There are several food consumption items of which cereal is the most important item as proportion of cereal consumption is highest among items of food consumption. The issue of household food security has been one of the major concerns in India. There is an on-going debate on welfare implications of status of food-grain consumption.
This study examines the patterns of cereal consumption expenditure functions under Keynes’s Absolute Income Theory of Consumption Function. Keynes in his "General Theory” (1936) laid the foundations of modern macroeconomics. According to Keynes, as income increases, consumption increases, but not as much as the increase in income.
In this paper attempts have been made to analyze the consumption pattern of cereal in the rural parts of major states including Gujarat and in the rural India. We have found in our study that there is significant difference for cereal consumption expenditure for rural states and rural India (using Krushical Walis test). The pair wise comparison using Conover-Inman Test suggest that there are significant differences for Cereal Consumption Expenditure between the pairs of Gujarat with all states considered and India at rural level except HR, KT, MP, MH, PN, RJ, TN and UP . We have also established the following order for cereal consumption expenditure amongst Rural Sates and Rural India (using Jonckheere Terpstra test).
This shows the importance of cereals as an item of consumption in the food basket of the rural families. . We hope that the findings reported by this study will provide an empirical basis for the on-going discussion on agricultural diversification and changes in consumption pattern.
KEYWORDS: Cereals Consumption Expenditure, Total Consumption Expenditure, Rural Major States, Rural India