The Hindu Business Line : Consumption pattern in rural areas sees change: Study

New Delhi, Sept. 28 The total number of rural households is expected to rise from 135 million in 2001-02 to 153 million in 2009-10. Thus, this is likely to result in rural India becoming the largest potential market in the world, notes a report jointly prepared by CII and YES Bank on rural retail.

An increase in the education level and media exposure has led to significant changes in the consumption pattern of rural India. In rural India, the share of food in total expenditure has fallen throughout the three decades prior to 2004-05 and the overall fall was from 73 per cent to 55 per cent.

However, the share of milk and milk products, egg, fish, meat, fruits and nuts has increased by about one percentage point each, vegetables by 2.5 percentage points while that of beverages, refreshments and processed food has increased by two percentage points since 1972-73 whereas it has decreased for cereals.

Rural india

In rural India, expenditure on cereals forms 18 per cent of the total consumption expenditure at present compared with 40 per cent in 1972-73, according to the report.

Trained manpower is instrumental in the success of a retail store especially in the rural areas. Absence of good quality personnel supported by infrastructure and documented policies and procedures could result in malpractices and poor customer satisfaction, the report has noted.