Consumption and Future Demand of Spices Among Indian Households

Using the available nationally representative national sample surveys (NSS) on household consumption, the chapter empirically examines the level and pattern of household consumption of major spices in India. Further, implications of the rising income of the households on spices consumption have been analyzed, and future household demand for spices has been projected. An average Indian spends about 4% of the food budget on spices and consumes 271 g of spices in a month. Consumption of spices is higher among urban households as compared to rural counterparts and spices are gaining their share in the food basket over time. Significant inter-regional variations in consumption have been observed which necessitates differential and region-specific marketing strategies. Income of the households bears a positive but inelastic association with spices consumption. With the increase in income and population, the demand for spices is expected to rise in the future, and regional variation in spices consumption would remain in the future as well. This warrants effective supply management strategies at the regional level to fulfill the demand.