A recent government analysis comparing Household Consumption Expenditure Survey (HCES) 2023-24 with HCES 2011-12 shows that Assam continues to spend one of the highest shares of monthly per capita expenditure (MPCE) on food in India.

About Assam’s Spending on Food

• According to HCES 2023-24, households in Ladakh, Assam and Bihar spend the largest share of MPCE on food in the country.
• In 2011-12, Assam’s rural households spent 61.3% of MPCE on food—the highest in India, where the national average was 52.9%.
• By 2023-24, rural food expenditure declined to 53.2%, but Assam still ranks second-highest after Ladakh.
• In urban Assam, food spending is 47.4%—the fourth highest in India, after Lakshadweep, Ladakh and Bihar.
• Despite improvement, eastern and northeastern states continue to spend above the national average, reflecting lower income levels, limited diversification, and higher dependence on essential consumption.
  

Low Spending on Durables and Vehicle Ownership

• Assam spends only 11% of MPCE on durables—among the lowest in India.
• Rural Assam spends ₹447 on durables (national average: ₹540).
• Urban Assam spends ₹772 (national average: ₹877).
• Motor vehicle ownership is also low:
  • Assam: 24% households (bottom 40% category)
  • Much lower compared to all-India expansion of mobility assets.
    

What This Indicates

• Persistent rural poverty and low-income elasticity.
• High dependence on food expenditure leaves limited space for savings or durable goods.
• Signals need for:
  • Higher income generation
  • Diversified livelihood support
  • Strengthening of consumption capacity
  • Better anti-smuggling and market regulation (as noted by government)
    

Exam Hook: UPSC Prelims Question

Household Consumption Expenditure Survey is conducted by the National Sample Survey Office under the Ministry of Statistics and Programme Implementation.

Statement-Based MCQs

MCQ 1

Statement I: Assam’s rural households spent over 61% of MPCE on food in 2011-12, the highest in the country.
Statement II: In 2023-24, Assam’s rural households spent less than the national average share on food.

Which one is correct?
A. Both I and II
B. Only I
C. Only II
D. Neither I nor II

Answer: B

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