HYDERABAD: Rural Telangana has emerged as one of the highest spenders on pan, tobacco and alcohol in the country, with households allocating an average of Rs 396.06 per person per month on these intoxicants — more than double the national rural average of Rs 158, according to the latest Household Consumption Expenditure Survey (HCES) 2023–24 released by the Ministry of Statistics and Programme Implementation (MoSPI).
The survey places Telangana among the top states in terms of expenditure on tobacco and alcohol, second only to some northeastern states.
In several rural pockets, spending on intoxicants rivals or even exceeds urban consumption levels in specific categories such as Indian-made foreign liquor (IMFL) and beer.
In rural Telangana, intoxicants account for about 7.3% of the total monthly per capita expenditure (MPCE), the second-highest in the country. This is significantly above the national rural average of 3.84%, highlighting the extent to which tobacco and alcohol continue to shape consumption habits in the countryside.
Economists note that the figures point not merely to higher incomes, but to spending priorities. In some rural households, nearly one-sixth of the food-related budget is being diverted to stimulants such as tobacco and alcohol. More strikingly, in several low-income families, monthly expenditure on gutkha and khaini has overtaken spending on education.
At the all-India level, households spent an average of Rs 158 per person per month in rural areas and Rs 166 in urban areas on pan, tobacco and intoxicants during 2023–24. While urban households generally spend more in absolute terms, rural households devote a larger share of their budgets to these products.
High overall consumption
Telangana stands out because of its relatively high overall consumption levels. The state’s average MPCE was Rs 5,435 in rural areas and Rs 8,978 in urban areas, both well above the national averages of Rs 4,122 and Rs 6,996 respectively.
Public health specialists in the state point to a long history of tobacco use in multiple forms — cigarettes, bidis and smokeless products — particularly among rural populations and informal sector workers.
The survey underscores a persistent rural-urban divide. Rural households, both nationally and in Telangana, continue to spend a higher proportion of their income on intoxicants than their urban counterparts. In Telangana, rising rural incomes driven by agriculture, government welfare schemes and non-farm employment have not been matched by a corresponding shift towards healthier consumption choices.
Health experts warn that such spending patterns have long-term consequences. Nationally, households already spend Rs 282 per person per month in rural areas and Rs 409 in urban areas on medical expenses — costs that are often aggravated by tobacco- and alcohol-related illnesses.
In Telangana, officials say diseases linked to tobacco use, including oral cancer, cardiovascular ailments and chronic respiratory conditions, account for a significant share of patient loads in government hospitals, particularly in rural districts.
Despite higher taxes, advertising bans and awareness campaigns, tobacco and alcohol consumption remain resilient. Experts argue that Telangana needs a stronger mix of enforcement, grassroots awareness and accessible de-addiction services, especially in rural areas.
The HCES 2023–24 data underline a broader paradox: while Telangana has made
notable gains in living standards, a substantial share of household budgets — particularly in rural areas — continues to be absorbed by tobacco and alcohol, posing an ongoing public health and economic challenge for the state.