Telangana spends big on processed food, staples take back seat
Hyderabad: Telangana residents, especially those living in urban areas like Hyderabad and Warangal, spend 2.5 times more per month on beverages and processed foods (Rs 1,142 per month) than on staples such as cereals, gram, and pulses, reveals the latest edition of the MoSPI household consumption survey released earlier this month.
This is higher than the national average of 2.1.
Among 18 major states, Telangana ranks fifth — behind Punjab (3 times), Assam (2.8 times), Tamil Nadu (2.7 times), and Himachal Pradesh (2.6 times).
On average, households in Hyderabad and Warangal spend Rs 1,142 per monthl on soft drinks and packed food items, compared to Rs 449 per month on cereals and pulses, key sources of essential nutrients.
Experts attribute this concerning trend to increased purchasing power driven by rise in per capita income (PCI) in the state.
K Lakshmi Narayan, an economics professor at the University of Hyderabad (UoH), highlighted that in recent years, rising income among Telangana's middle and upper-middle class, further bolstered by by govt policies, have increased consumer spending.
At Rs 3.79 lakh, Telangana's PCI stands far ahead of the national average of Rs 2.05 lakh, as per the figures by MoSPI. This year's socio-economic report released by the state govt highlighted that the PCI of Hyderabad is Rs 5.54 lakh, Warangal (Rs 2.44 lakh), Sangareddy (Rs 3.45 lakh), and Rangareddy (Rs 10.55 lakh).
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Noted city-based economist Amir Ullah Khan also attributed the trend to both supply and demand dynamics. "As production of processed food scaled up, the price of processed and packaged foods has dropped, and they are now more accessible across the country, not just Hyderabad. It's often cheaper to buy a cheese-filled pizza than to cook a meal with rice and vegetables," explained Khan, who is also a fomer civil servant and worked with the Bill and Melinda gates Foundation.
Meanwhile, Laxmi Narayan added that lack of time among working individuals is another factor. "Many in the private sector, especially IT professionals in Hyderabad, now prefer processed food due to convenience. This has significantly increased consumption of processed food," he said.
Khan further linked "poor fiscal policy" as another reason, adding that this isn't just about individual choices but a failure of tax, food, and health policy.
"Unhealthy processed foods often enjoy the same low or zero tax rates as basic farm produce. They should be taxed heavily, on the lines of tobacco, because the health damage they cause far surpasses the revenue collected, which is around Rs 70,000 crore. But, because they generate high consumption and some tax revenue, they are encouraged.
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Khan also pointed out that lack of nutrition awareness further fueled poor dietary choices, as many people prefer attractively packaged processed foods over potentially more nutritious street or local food. "Even hygiene concerns often push consumers toward processed options over fresh or local meals. Moreover, the shift in agriculture toward cash crops such as cotton and tobacco has, in turn, reduced land for fruits and vegetables, driving up their prices," he said.
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