A recent report indicates that rural households in India are allocating a larger portion of their income to tobacco products than to education. The Household Consumption Expenditure Survey 2022-23, conducted by the National Sample Survey Office (NSSO) between August 2022 and July 2023, reveals that rural India spends 3.79% of its total household spending on paan, tobacco, and other intoxicants, while expenditure on education accounts for only 3.30%.

This marks a shift from previous years. The survey indicates that in 2011-12, rural households spent 3.21% on paan, tobacco and intoxicants and 3.49% on education.

The survey also highlights changing consumption patterns across the board. In urban areas, spending on paan, tobacco, and intoxicants has increased from 1.61% in 2011-12 to 2.43% in 2022-23. Meanwhile, urban spending on education has decreased from 6.90% to 5.78% during the same period.

The report also indicates a reduction in expenditure on food items in both rural and urban areas. In rural India, expenditure on food decreased from 52.8% to 46.38% between 2011 and 2022.

Conversely, the survey points to an increase in spending on items such as medical expenses, conveyance, and rent, alongside the aforementioned unhealthy products. Expenditure on conveyance saw a notable rise in both urban and rural areas, climbing from 4.20% to 7.55% in rural areas and from 6.52% to 8.59% in urban areas between 2011-12 and 2022-23.

The Monthly Per Capita Consumption Expenditure (MPCE) has more than doubled between 2011-12 and 2022-23. The average MPCE in urban areas rose to Rs 6,459 in 2022-23 from Rs 2,630 in 2011-12, while in rural areas, it increased to Rs 3,773 from Rs 1,430.

It is important to note that an earlier report from the National Statistical Organisation (NSO) in 2017-18 was junked due to concerns about "data quality". This makes the current survey particularly significant, as it is being released after almost a decade.

While the survey sheds light on broad trends, experts are still analyzing the underlying causes for some of these shifts. For instance, the reasons behind decreased spending on non-food items like education, clothing, and footwear require further investigation. Some experts suggest that government welfare schemes providing free cereals may contribute to reduced expenditure on food consumption.