BHUBANESWAR: Despite being among the states that have maintained relatively low inflation in recent years, Odisha has posted robust growth in household consumption patterns over the past decade, reflecting improved income, living standards and structural changes in spending behaviour.
The latest Household Consumption Expenditure Survey (HCES) data tabled in the Assembly on Thursday as part of the Economic Survey 2025-26 revealed that monthly per capita consumption expenditure (MPCE) in the state increased from Rs 1,142 in 2011-12 to Rs 3,759 in 2023-24, registering a compound annual growth rate (CAGR) of 10.4 per cent (pc).
While rural MPCE rose from Rs 1,003 to Rs 3,357 during this period with a CAGR of 10.6 pc, urban MPCE increased from Rs 1,941 to Rs 5,825, recording a CAGR of 9.6 pc.
The growth rates in both rural and urban regions surpassed the corresponding national averages and indicated a stronger real consumption expansion in Odisha.
According to the report, the rising purchase power has been accompanied by a clear shift in the composition of expenditure. In 2011-12, food accounted for 57.2 pc of total consumption in rural areas and 45.4 pc in urban areas. The shares had declined to 48.5 pc and 40.7 pc, respectively, by 2023-24, while non-food expenditure rose to 51.5 pc and 59.3 pc, respectively.
The transformation in consumption pattern is more visible within the food basket. The share of cereals in food expenditure has nearly halved over the decade. In rural areas, cereal spending declined from 29.3 pc in 2011-12 to 15.4 pc in 2023-24, while it fell to 12.9 pc from 23 pc in urban areas.
At the same time, households allocated a greater share of their food budgets to nutrient-rich and diversified items. In rural Odisha, the share of expenditure on egg, fish and meat increased from 10.6 pc to 12.7 pc, fruits from 3.9 pc to 6.7 pc, milk and milk products from 4.5 pc to 6.2 pc and packaged processed food and beverages from 6.5 pc to 10.9 pc.
Urban households showed a similar pattern with fruits rising from 5.4 pc to 7.9 pc, milk and milk products from 7.8 pc to 9.5 pc and packaged processed food and beverages from 9 pc to 14.6 pc. But egg, fish and meat consumption dropped from 10.1 pc to 9.8 pc.
In non-food expenditure, the trends in rural areas indicated the shift in lifestyle and aspirations as the share of spending on consumables and services such as clothing, transport, health and education rose from 39 pc to around 47 pc of total MPCE. In urban areas, the share increased marginally from 50.1 pc to 51.9 pc. The spending patterns also moved away from essential services in rural Odisha with its share declining from 19 pc to 17.1 pc while lifestyle and personal well-being spending rose from 12.7 pc to 15.8 pc. Similarly, in urban areas, spendings on essential services fell from 17.7 pc to 14.4 pc and lifestyle expenditure increased from 14.2 pc to 16.8 pc.