|PRINT ISSN : 2319-7692
Online ISSN : 2319-7706
Issues : 12 per year
Publisher : Excellent Publishers
Email : email@example.com / firstname.lastname@example.org
Index Copernicus ICV 2015: 85.95
NAAS RATING 2017: 5.38
The main focus of the study was to assess the impact of food subsidy on consumption of rural and urban households in Western Tamil Nadu. Almost Ideal Demand System and Household Food Consumption Function were used to study the consumption pattern of different income groups and analyse the effect of food subsidy on consumption pattern. The results of expenditure pattern had revealed that as income increased the percentage of expenditure of food commodities decreased. Increase in real income the HIG increased their expenditure on milk and milk products and animal products in both the sectors. Among the income groups, the LIG increased their expenditure share on more items with any increase in real income in both the sectors. The total expenditure on food subsidy decreased with increased income. The expenditure on subsidized other cereals was more in the higher income groups indicating thereby that purchase of wheat was more by this group from the Fair Price Shops. The ratio of subsidy food to total food was decreasing from 55.60 per cent in rural LIG to 3.84 per cent in rural HIG and it was 51.34 per cent and 3.68 per cent, respectively for their urban counterparts. In LIG, their total rice consumption was met through Free Rice Scheme of the Government of Tamil Nadu, over eight per cent of the total oil consumption purchased from the subsidy shops. But price of oil, and sugar to a large extent affected the LIG. The subsidy wheat price increased would affect the HIG in both the sectors.