Trends in alcohol consumption and expenditure_ Analysis of household data from nationally representative sample from India
Akash Sood & Ashwani Mishra & Atul Ambekar
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Trendsinalcoholconsumptionandexpenditure:Analysisofhouseholddata fromnationallyrepresentativesamplefromIndia
AkashSooda,⁎,AshwaniMishrab,AtulAmbekarc
a ResearchAssistant,IndianStatisticalInstituteDelhi,7,S.J.S.SansanwalMarg,110016,NewDelhi
b AssociateProfessor,NationalDrugDependenceTreatmentCentreandDepartmentofPsychiatry,AllIndiaInstituteofMedicalSciences,AnsariNagar,110029,NewDelhi
c Professor,NationalDrugDependenceTreatmentCentreandDepartmentofPsychiatry,AllIndiaInstituteofMedicalSciences,AnsariNagar,110029,NewDelhi
ARTICLEINFO
Keywords: Alcoholconsumption Alcoholexpenditure India
ABSTRACT
Background: AlcoholconsumptioninIndiahasbeenrisingatanincreasingrate.Abetterunderstandingof currenttrendsofconsumptionandexpenditureisnecessaryfortacklingfuturechallenges.
Aims: Todetermineassociationbetweenhouseholdincomeandamountofalcoholconsumed,typeofbeverage consumed,andexpenditureonalcoholinIndianhouseholdsacrossdifferentincome-groupsforruralandurban areas.
Method: Secondaryanalysisofcross-sectionaldatafromtheConsumptionExpenditureSurveybyNational SampleSurveyOrganizationfor2011-12inanationallyrepresentativesampleofover65,000households.We usedestimatesofaveragehouseholdMonthlyPerCapitaConsumerExpenditure(MPCE)includingdistribution ofhouseholdsandpersonsovertheMPCErange,break-upofaverageMPCEbycommoditygroup.
ResultsandConclusion: HouseholdsinIndia,onaverage,consumed0.18Lofallalcoholicbeveragespermonth (0.22Linruralareas;0.10Linurbanareas).Theabsolutequantityofalcoholconsumedwashigheramong higherincome-groupsinbothruralandurbanareas.CountryliquorwasusedbyamajorityacrossIndia;was usedseventimesmorethantoddyandbeer,and3.5timesmorethanIndianMadeForeignLiquor.Households’ expenditureonalcoholwasRs.16.46(US$0.26)permonth,whichwas0.98%ofaveragetotalhouseholdMPCE. FractionofaveragetotalhouseholdMPCEonalcoholinruralareas(1.14%)wasalmostdoublethatofurban areas(0.62%).Itincreasedsteadilyfromlowest(0.5%)tohighest(1.7%)incomegroupinruralareaswhereasin urbanareas,itvariedalittle(0.5-0.8%)acrossincomegroups.
1.Introduction
Harmfuluseofalcoholisassociatedwithsignificantmorbidityand mortality.Italsoresultsinsocialandeconomiclossesforindividuals andthesociety.Intheyear2014,problemsarisingfromalcoholintake wereresponsiblefor5.1%oftheglobalburdenofdisease,equivalentto 139milliondisabilityadjustedlifeyears(DALYs)(WHO,2014).India hasbeengenerallyregardedasanationwith ‘dry’ or ‘abstaining’ cultureandhaslowpercapitaconsumptionofpurealcoholat2.2litres comparedtotheaverageforSouthEastAsia(3.4),China(6.7)andthe UnitedStates(9.2)(Benegaletal.,2003; WHO,2014).
Inrecentyears,therehasbeenasteadyriseinalcoholconsumption inIndia.Theimpacthasbeenespeciallyharmfulforvulnerablesections ofthepopulation(Gururajetal.,2011).Thetrendofincreasingconsumptionamonghistoricallylowalcoholconsumptiondemographics suchastheeconomicallydisadvantaged,womenandtheyouth,isalsoa
⁎ Correspondingauthor.Tel.:+919999256956.
E-mailaddress: soodakash92@gmail.com (A.Sood).
https://doi.org/10.1016/j.ajp.2019.02.011
causeforconcern(Prasad,2009).
OnthepolicyfrontinIndia,two,often-conflictingperspectives dominatealcoholregulation.The firstadvocatesforprohibition(completeorpartial)ofproduction,saleandconsumption,bolsteredbythe IndianConstitution,which,asapartofthe ‘DirectivePrinciplesofState Policy’ urges,butdoesnotmandatethealcoholprohibitionatthenationallevel(Balakrishnanetal.,2006).Thesecondpolicyperspective consistsofregulatingalcoholproductionandconsumptionthrough highertaxratesandagerestrictionsonalcoholpurchase(Elderetal., 2010).UnderthefederalstructureofgovernanceinIndia,stategovernments(asopposedtotheuniongovernment)aremandatedtoregulatealcohol.Sincealcoholtaxesareamongthemajorrevenue-earners forstategovernmentsinIndia(15–20%ofstaterevenues),thereisa perverseincentiveforthegovernmentstoincreasealcoholconsumption asasourceofrevenue(Prasad,2009).ItisimportanttostudydeterminantsofalcoholuseinIndiatohelprealizethesustainable
Received18January2019;Receivedinrevisedform8February2019;Accepted22February2019
1876-2018/©2019ElsevierB.V.Allrightsreserved.
developmentgoalsoftheUnitedNations,SDG3.5thataimsto “strengthenpreventionandtreatmentofsubstanceabuse,including narcoticdrugabuseandharmfuluseofalcohol” (United Nations, 2014).
Relationshipbetweenalcoholconsumptionandeconomicstatusisa complexone.Fromdevelopedcountries,thereisarichliteratureonthe associationofeconomicstatuswithalcoholuse(KeyesandHasin, 2008).Indevelopingcountries,likeIndia,duetoapaucityofreliable data,suchanassociationhasnotbeenestablished.While,studiesexist whichhaveusedsmalllocalizeddatasetsfromdifferentpartsofthe countrylikeWestBengal(Chowdhuryetal.,2006),Punjab(Murthy, 2015),Mumbai(Narawaneetal.,1998)butassociationbetweenpatternsofalcoholconsumptionandeconomicstatushasnotemerged. Specifically,alinkbetweenthematerialstandardofliving(indicated bythehouseholdexpenditure)andalcoholconsumptionhasnotbeen wellquantifiedatanationallevel.Thestudyofthisrelationshipis importantfromtheperspectiveofalcoholtaxationpoliciessinceraising taxesisoftenrecommendedasapublichealthmeasuretoreduce consumption.
Inthisstudy,wesoughttocharacterizethehouseholdconsumption ofalcoholinIndia.Specifically,welookedattheamountofalcohol consumed,thebeveragewhichwasconsumed,andtheexpenditureon alcoholinanationallyrepresentativesampleofIndianhouseholdsbelongingtodifferentincomegroupsinruralandurbanpopulations.
2.Methods
Forthisstudyweanalysedthesecondarydata,alreadycollectedand availableinthepublicdomain.
2.1.Datasources
Thesourceofdataforthisanalysiswasthe68th roundofConsumer ExpenditureSurvey(CES)conductedbytheNationalSampleSurvey Organization(NSSO)in2011-12.Thisdatabaseisavailableinthe publicdomainandcanbeaccessedfreeofcostat http://mail.mospi. gov.in/index.php/catalog/145 .NSSOsurveysareconductedinyearly rounds(fromJune)infourwavesthroughouttheyear.Eachroundis classifiedasa ‘thick’ round,conductedonceevery fiveyears,or ‘thin’ , conductedinotheryears,dependingonthesamplesizeofhouseholds surveyed.ThethickCESisanationallyrepresentativesampleof householdsselectedrandomly.
The68th CESfollowedastratifiedtwo-stagesamplingdesignwhere the first-stageunitswerecensusvillagesintheruralareasandsampling frameblocksinurbanareas;thesecond-stageunitswerehouseholds.It coveredallthestatesandtheunionterritoriesofIndia,withthenationalsamplecomprisedofabout65,000households(eachhousehold definedasagroupofpeoplenormallylivingtogetherandtakingfood fromacommonkitchen).Forgatheringconsumerexpendituredata,a modifiedmixedrecallperiodwasused:(a)365-daysforclothing, footwear,education,institutionalmedicalcare,anddurablegoods,(b) 7-daysforedibleoil,egg, fishandmeat,vegetables,fruits,spices, beverages,refreshments,processedfood,pan(betelleaves),tobacco andintoxicants(includingalcohol),and(c)30-daysfortheremaining fooditems,fuelandlight,miscellaneousgoodsandservicesincluding non-institutionalmedical;rentsandtaxes.Monthlyvalueswerethen derivedfromthesevaluesusingappropriatealgebra(NSSO,2014).
2.2.Studyvariables
Baseduponthehouseholdincome,populationofthecountryhas beendividedintovariousincome-fractiles,indicatingdifferenteconomicclasses.Datareportedonamountandabsoluteexpenditureon differenttypesofalcoholicbeverages(describedlater)wasextractedto calculatepercentageofmonthlyincomespentonalcoholacrossdifferentincomefractilestoseevariationinconsumptionofalcohol.
2.2.1.Incomefractileclasses
In NSSO(2014)data,populationofthecountryhasbeendivided into12incomefractileclasses:0–5,5–10,10–20,20–30,30–40,40–50, 50–60,60–70,70–80,80–90,90–95and95-100.Anygivenfractile classcontainsinformationaboutpersonswhoseincomeisbetween lowerandupperpercentile.Thus,fractileclass10–20wouldinclude personshavingincomebetween10–20percentile;nthpercentilemeans thatn%ofpersonsarebelowthatvalue.Forexample,the0.05fractile isthe5st percentile,the0.5isthe50th fractile.
2.2.2.Averagehouseholdmonthlypercapitaconsumerexpenditure (MPCE)
AspertheCES,MPCEisdefinedastheaveragemonthlyconsumptionexpenditureofthehouseholddividedbythenumberof householdmembers(bothadultsandchildren).Thisdataisavailable foreverycommodity/itemonwhichtheexpenditurewasincurred.We usedtheMPCEonvariousalcoholicbeverages,separatelyforurbanand ruralareas.
2.2.3.Quantityandexpenditureondifferenttypesofalcohol
Dataonmonthlypercapitaquantityandvalueofconsumption(in Rs.)fortoddy,countryliquor,beerandforeign/refinedliquororwine, wasextractedandtabulated.
Alcoholicbeverageshavebeendividedinfourcategories: ‘toddy’ , ‘countryliquor’ , ‘beer’,and ‘Indianmadeforeignliquor-IMFL&Wine’ Toddy referstopalmwineandotherlowalcoholcontentbeverages producedlocally,usuallyinruralcommunities,usingtraditionaltechniques. Countryliquor isadistilledspiritusuallyderivedfromfermentationofmolasses(wasteproductfromsugarcaneindustry). Beer retains itscommoninternationaldefinitionofalowtomoderatealcoholcontentbeveragebrewedfromgrains(usuallybarley). IMFLorIndianmade ForeignLiquor referstodistilledspiritssuchasRum,Gin,Vodkaand Whisky,whicharemanufacturedandmarketedbylicensedIndian companies.ForthepurposeofCES,expenditureonIMFLisclubbed withdifferenttypesofwines.Thereisalsoa fifthcategoryconsistingof importedforeignliquor(IFL).UnlikeIMFLwhichismanufacturedin India,thesearedistilledspiritswhichareimporteddirectlytothe country.Importedforeignliquorisheavilytaxedasaluxurygood,and itsconsumptionislimited.Thus,thiscategoryhasnotbeenconsidered forthisanalysis.
Wecalculatedthetotalquantityandexpenditureonalcoholby summingupvaluesofeachtypeofalcoholicbeverage.Fractionof MPCEspentonagiventypeofbeveragewascalculatedbydividingthe expenditureonthattypeofbeveragebythetotalaverageMPCEofthe incomefractileclass.
2.3.Analysis
Theaggregatednatureoftheavailabledata(reportedasfrequency distributions)insteadofindividualdatapoints,precludesstandard methodsofstatisticalanalysisinvolvingregression.Hence,forthe cross-sectionalsecondaryanalysisinthisstudywefocusedonsummary statisticsofthedata.
Wetabulatedandthencalculatedpercentageofincomespenton fourtypesofalcoholicbeveragesacrossdifferentincomefractilesfor ruralandurbanareas.Karl-PearsonProduct-MomentCorrelation CoefficientwascomputedforaveragehouseholdMPCEandpercentage ofhouseholdMPCEspentonanalcoholicbeverageforeachofthefour beveragetypes,separatelyandalltogether,inruralandurbanareas.
WeusedStata14andMSExcel2016fordatahandling,statistical analysis,andpreparationoftablesand figures.
Table1
QuantityofAlcoholicbeverages(Toddy,CountryLiquor,Beer,IMFL,alltogether)Consumed(inLitres/month)forDifferentClassesofIncomeFractile;Nationally AveragedforRuralandUrbanareas.
Source:NSSO’s68throundCES(2011-12)data,*CLisCountryLiquor,**IMFLisIndianMadeForeignLiquor(includingWine). IncomeFractileQtyofToddyConsumed(L.)QtyofCL*Consumed(L.)QtyofBeerConsumed(L.)QtyofIMFL**Consumed(L.)QtyofTotalAlcoholConsumed (L.)
RuralUrbanRuralUrbanRuralUrbanRuralUrbanRuralUrban 0-50.030.010.050.050.000.000.000.000.070.07 5-100.060.010.070.070.000.000.000.010.130.10 10-200.030.010.080.050.000.000.000.010.110.08 20-300.060.020.070.050.000.010.000.010.130.09 30-400.100.010.110.060.010.010.010.010.230.09 40-500.090.010.080.040.010.010.010.020.180.07 50-600.080.010.110.040.010.020.010.020.210.08 60-700.100.010.100.060.010.030.010.030.220.11 70-800.160.010.100.030.010.040.020.020.300.10 80-900.180.000.100.030.030.040.040.040.340.10 90-950.120.000.120.030.020.070.060.050.310.14 95-1000.120.000.140.020.090.090.110.070.460.19 0-1000.090.010.090.040.010.020.020.020.220.10
3.Results
3.1.Quantityandtypeofalcohol
Thetotalconsumptionofallalcoholicbeverages(includingtoddy, countryliquor,beerandIMFL)inIndia,onanaverage,is0.22Linrural areasand0.10Linurbanareaspermonthperhousehold.Considering thatabout69%ofIndianpopulationisruralasperCensus2011 (Chandramouli,2011),thisshowsthatIndianhouseholdsconsumedan averageof0.18Lofalcoholicbeveragespermonthin2011-12.Interms ofspecifictypesofbeverages,overall,theIndianhouseholdsonan averageconsumed,permonth,0.07Loftoddy,0.07Lofcountryliquor, 0.01Lofbeer,and0.02LofIMFL.Whenfurtheranalysed,averagetotal quantityofmonthlyconsumptionoftoddy,countryliquor,beerand IMFLinruralareaswas0.09L,0.09L,0.01Land0.02Lrespectively whileitwas0.01L,0.04L,0.02L,0.02Lrespectivelyinurbanareas. Theabsoluteamountofallalcoholicbeveragesconsumedpermonth rangesfrom0.07Lforthelowestincomegroupto0.46Lforthehighest incomegroupinruralareas.Inurbanareas,thisrangeisbetween0.07L and0.19L.Ingeneral,agradientofhigheralcoholconsumptionwith higherincomelevelsisvisiblefromthedata(Table1).However,the highestincomegroupconsumesmorealcoholinruralareas(0.46L) comparedtourbanareas(0.19L).Further,quantityandtypeofalcoholicbeveragesacrossdifferentincomefractilesinruralandurban areasisdepictedin
3.2.MPCEontotalalcoholanddifferenttypeofalcoholicbeverages
Averagemonthlyhouseholdexpendituremadeonprocuringall typesofalcoholicbeveragesisRs.16.46[Rs.16.50(US$0.26),ruraland Rs.16.36(US$0.25)urban].Inruralareas,theMPCEonalcoholranges fromRs.3.25toRs.74.17inthelowesttothehighestincomefractile whereasinurbanareas,itrangesfromRs.3.84toRs.56.97.Intherural households,thefractionofMPCEontoddyrangesfromRs.0.56toRs. 3.15,oncountryliquorfromRs.2.73toRs.16.18,onbeerfromRs.0to Rs.8.54andonIMFLfromRs.0.07toRs.46.75.Intheurbanhouseholds,thefractionofMPCEontoddyrangesfromRs.0toRs.0.55,on countryliquorfromRs.3.20toRs.6.39,onbeerfromRs.0toRs.13.47 andonIMFLfromRs.0.36toRs.38.32.(Table2).Interestingly, Table2 alsoshowsthatuptotheincomefractileof60–70,theMPCEonalcohol isconsistentlyhigherintheurbanareas.Thetrendhoweverisreversed fromtheincomefractile70–80onwards,whereforallthehigherincomefractiles,ruralpopulationspendsmoreonalcoholthantheir urbancounterparts.
3.3.FractionofaveragetotalhouseholdMPCEonalcoholanddifferent typeofalcoholicbeverages
ThefractionofaveragetotalhouseholdMPCEspentontotalalcohol is0.98%oftheaveragetotalhouseholdMPCE(rural-1.14%andurban -0.62%)(Table3).Inruralareas,theMPCEonalcoholrangesfrom 0.5%to1.7%inthelowesttothehighestincomefractilewhereasin urbanareas,itrangesfrom0.5%to0.8%.Thispercentageforurban areasandruralareasisequalfortheincomefractilesin0-20th percentileandishigherinruralareasfortheincomefractilein30h-100th percentile.
Theoverallexpenditureonalltypesofalcoholicbeveragesasa fractionoftheMPCE,showsagradualbutdefiniteriseasincome fractileincreases,intheruralareas,whilesuchatrendisnotdiscernibleintheurbanareas(Fig.1). Fig.2 displaysthesametrendwith respecttodifferentalcoholicbeverages.Asevidentinthe Fig.2,witha riseinincome,theproportionalexpenditureonIMFLtendstobehigher whiletheexpenditureoncountryliquorandtoddytendstobelower.
3.4.Correlationbetweenhouseholdexpenditureandexpenditureonalcohol
Wedeterminedtheassociationbetweenaveragetotalhousehold MPCEandexpenditure(absolute)madeonalcohol,usingtheKarlPearsoncorrelationcoefficient,anditssignificancethroughthe t-test.A significantandnearlyperfectpositivecorrelationwasobtainedbetweenoverallMPCEandabsoluteamountofexpendituremadeonalcoholforbeer(r=0.97inruraland0.99inurbanareas)andIMFL (r=0.99inruraland1.00inurbanareas)(Tables4and5).Thus,when overallMPCErisesaswemovefromalowtoahighincomefractile,the absoluteamountofexpenditureonthesebeveragesrisesproportionatelyforbothruralandurbanareas.
Weconductedsimilaranalysisfortheassociationbetweenfraction ofMPCEmadeonalcoholandtheaveragetotalhouseholdMPCEusing theKarl-Pearsoncorrelationcoefficient,anddetermineitssignificance throughthe t-test(Tables6and7).Asignificantpositivecorrelation betweenaveragetotalhouseholdMPCEandpercentageoftheMPCE spentonalcoholforbeer(r=0.88inruraland0.59inurbanareas)and IMFL(r=0.94inruralandr=0.60inurbanareas)wasobtained. Thus,whenoverallMPCErises,thefractionofMPCEspentonthese beveragesalsorises.Thisriseismuchmoreprominentforruralareas comparedtourbanareas.ThehighercoefficientsforruralareasindicatesthatabsoluteexpenditureonbeerandIMFLrisesatamuch fasterratethantheoverallMPCEinruralareascomparedtourban areas.
Conversely,thereisasignificantnegativecorrelationbetweenthe
Table2
MonthlyPerCapitaExpenditure(MPCE)ondifferentalcoholicbeverages(Toddy,CountryLiquor,Beer,IMFL,alltogether)fordifferentclassesofincomefractile; nationallyaveragedforruralandurbanareas.
Source:Authors’ analysisofNSSOdata.
Income Fractile Avg.HouseholdMPCE(Rs.)MPCEonToddy(Rs.)MPCEonCL(Rs.)MPCEonBeer(Rs.)MPCEonIMFL(Rs.)MPCEonAllAlcohol(Rs.) RuralUrban RuralUrbanRuralUrbanRuralUrbanRuralUrbanRuralUrban 0-5650 712 0.460.212.733.200.000.070.070.363.25 3.84 5-10673 906 1.280.362.893.900.000.450.341.634.51 6.34 10-20795 1132 0.560.343.743.850.080.450.722.385.09
60-701431 2554 1.430.268.446.391.293.325.019.4516.1719.41
70-801649 3069 2.640.317.423.991.654.307.929.8219.7918.72
80-902014 3893 2.420.009.473.503.025.0612.8913.6327.7922.19 90-952564 5364 2.050.0010.514.832.058.0522.3118.7736.9231.65
95-1004495 103583.150.0016.185.188.5413.4746.7538.3274.1756.97 0-1001447 2639 1.590.006.664.491.302.906.808.4416.5016.36
overallMPCEandpercentageoftheMPCEspentonalcoholfortoddy (r=-0.65)andcountryliquor(r=-0.77),inurbanareas.Therefore, whenoverallMPCErises,thefractionofMPCEonthesebeverages decreases.Inruralareas,toddy(r=-0.31)hasasignificantnegative correlationbutcountryliquor(r=0.52)hasasignificantpositive correlation.Thus,fractionofMPCEontoddyconsumptioninrural areasdecreasesasincomeincreaseswhereasthefractionofMPCEon countryliquorincreaseswithriseinincome,similartothecaseofbeer andIMFL.
4.Discussion
Inthisstudy,anationallyrepresentativedatasetwasusedtocharacterizepatternofalcoholconsumptionandexpenditureinIndia.The consumptionwasmeasuredbyquantityofalcoholconsumedby households,typeofalcoholconsumed,overallmonthlyexpenditure madeonprocuringalcoholicbeveragesandexpenditureonalcoholasa fractionoftheaverageMPCEforvariousincomegroupsinruraland urbanareas.
4.1.Quantityofalcoholconsumed
Indianhouseholds(typicallywithanaverageof4.8numberof members,includingallagesandgenders)onanaverage,consumed
Table3
0.18L(rural – 0.22;urban – 0.10)ofallalcoholicbeveragespermonth in2012.Itmustbenotedthatthe figuresfor individualswhodrink,may besubstantiallydifferent.TherecordedpercapitaconsumptionofalcoholofpurealcoholinIndiahasbeenreportedtobe2.2L(WHO, 2014).InanepidemiologicalstudyfromUSA,alcoholusewasfoundto behigheramongstindividualswiththehighestfamilyincomeas comparedtothosewithlowerfamilyincomes(Grant,1997).Interestingly,inmanystudiesfromIndia,alcoholusehasbeenfoundtobe higheramongpeoplefromlowereconomicclasses(Neufeldetal.,2005; Subramanianetal.,2005; Sugathanetal.,2008; Tomaretal.,2016). Notably,suchstudiestendtofocusuponproblemalcoholuse(like abuse,hazardoususeordependence),whereasourdataset,provided informationonthequantityandexpenditureonalcoholoverthepreceding7days.
4.2.Typeofalcoholconsumed
Apartfromthetotalamountofalcoholconsumed,dataontypeof alcoholprovidedinterestinginsights.Countryliquorappearedtobethe drinkofchoiceforamajorityevidentbyitsusebeingseventimesmore thantoddyandbeer,and3.5timesmorethanIMFL.This findingisin linewithreportsthat94%ofalcoholicconsumptioninIndiaisinthe formofspirits-countryliquorandIMFL(Girishetal.,2010; Gupta etal.,2003; WHO,2014).Indiaalsoscoreshigherthanmostofthe
FractionofHouseholdMonthlyPerCapitaExpenditure(MPCE)spentondifferentAlcoholicBeverages(Toddy,CountryLiquor,Beer,IMFL,alltogether)fordifferent ClassesofIncomeFractile;NationallyAveragedforRuralandUrbanareas.
Source:Authors’ analysisofNSSOdata,FractionofhouseholdMPCEonaparticularbeverageiscalculatedasexpenditureonthatbeveragedividedbyavg. MPCE*100foraparticularincomefractileinruralorurbanarea.
Income Fractile Avg.HouseholdMPCE (Rs.)
Fraction*ofMPCESpent onToddy(%)
FractionofMPCESpent onCL(%)
FractionofMPCESpenton Beer(%)
FractionofMPCESpenton IMFL(%)
FractionofMPCEonAll Alcohol(%)
RuralUrbanRuralUrbanRuralUrbanRuralUrbanRuralUrbanRuralUrban 0-56507120.070.030.420.450.000.010.010.050.500.54 5-106739060.190.040.430.430.000.050.050.180.670.70 10-2079511320.070.030.470.340.010.040.090.210.640.62 20-3090613630.100.040.460.350.020.110.080.290.660.79 30-40105416300.150.020.530.390.040.070.150.290.860.76 40-50114218940.120.010.510.180.050.080.220.330.900.60 50-60128321900.100.010.500.180.040.090.190.250.830.54 60-70143125540.100.010.590.250.090.130.350.371.130.76 70-80164930690.160.010.450.130.100.140.480.321.200.61 80-90201438930.120.000.470.090.150.130.640.351.380.57 90-95256453640.080.000.410.090.080.150.870.351.440.59 95-1004495103580.070.000.360.050.190.131.040.371.650.55 0-100144726390.110.000.460.170.090.110.470.321.140.62
Fig.1. VariationinPercentageofHouseholdMPCEspentonAllAlcoholicBeverageswithchangeinHouseholdIncomeFractileforRuralandUrbanareasatthe Nationallevel.
developedworldontheWHO’sPatternsofDrinkingScorewhich measuresriskinessofthepatternofdrinking.Thepreferenceforhigh alcoholconcentrationdrinkscanbeattributedtothetendencyofIndiansto ‘drinktogetdrunk’.(PHFI,2013; WHO,2014)Whileanalysing therelationshipbetweentypeofalcoholconsumptionandincome,it wasfoundthattoddyconsumptionacrossallincomegroupswaslimited toruralareas.Forlowandmiddle-incomegroupsinruralareas,toddy andcountryliquorwerethemostconsumedbeverages.Astheincome grouprises,theconsumptionoftoddyandcountryliquorremainsthe same,butthereisasteadyincreaseinconsumptionofbeerandIMFL.In urbanareas,countryliquoristhedrinkofchoiceforlowerincome groupsanditsconsumptionremainshighevenforhigherincome groups.ThereisasteadyincreaseinconsumptionofbeerandIMFL withincreaseinincome. Rahman,(2003) foundthatruralhouseholds significantlyprefertoddytoIMFLandbeercomparedtourbanhouseholds.TheyalsofoundhigherincomeelasticitiesforIMFLandbeer comparedtotoddyandarrack,i.e.,theconsumptionofformerrises fasterwithincreasingincome.
4.3.Expenditureontotalalcoholanddifferenttypesofalcoholicbeverages
Indianhouseholdsspentaboutonepercentoftheaveragetotal householdMPCEonalcohol.Therewasanincreaseinexpenditureon alcoholwithrisingincomeinbothurbanandruralareasforallalcoholicbeverages.However,averagemonthlyexpenditureincreased steadilyinruralareas,whereasinurbanareas,itwasthesameacross incomegroups.
Forruralareas,thesteadyincreaseinfractionofaveragetotal householdMPCEspentonalcohol,aswemovefromlowesttohighest incomegroups,seemstobedrivenbyanincreaseinconsumptionof beerandIMFL,alongwithsubstitutionawayfromtoddyandcountry liquor.Thiscanbeexplainedbytheconceptofluxuryandnormalgood ineconomics.Foraluxurygoodthedemandincreasesmoreproportionallythanincome,incontrasttoanormalgood,whosedemand increaseslessproportionallythanincome(Varian,1992).Agoodperceivedtobeinherentlyhigherqualityisusuallyclassifiedasa ‘luxury good’ andalowerqualitygoodisclassifiedasa ‘normalgood’.The factorsthatmakeacertaingoodsuperiororinferiorvarywidelyacross countries.Inmostcountries,domesticallymanufacturedalcohol
Fig.2. VariationinPercentageofHouseholdMPCEspenton(a)IMFL,(b)Beer,(c)CountryLiquorand(d)ToddywithIncreasingHouseholdIncomePercentile;for UrbanandRuralareasattheNationallevel.
Table4
CorrelationofNationallyAveragedHouseholdMPCEandExpenditureondifferentAlcoholicbeveragesinRuralareas.
*Allvaluesaresignificantfor1%confidencelevelduetotheverylargesizeofsample(n=65,000).
Table5
CorrelationofNationallyAveragedHouseholdMPCEandExpenditureonDifferentAlcoholicBeveragesinUrbanareas.
Avg.HouseholdMPCE(Rs.) 1.00
ExpenditureonToddy(Rs.) 0.65*1.00
ExpenditureonCL(Rs.) 0.20*0.02*1.00 ExpenditureonBeer(Rs.) 0.99* 0.66*0.22*1.00
Allvaluesaresignificantfor1%confidencelevelduetotheverylargesizeofsample(n=65,000).
Table6
CorrelationofNationallyAveragedHouseholdMPCEandFractionofMPCEspentondifferentAlcoholicBeveragesinRuralareas.
Avg.HouseholdMPCE(Rs.) 1.00 FractionSpentonToddy(%) 0.31
*Allvaluesaresignificantfor1%confidencelevelduetotheverylargesizeofsample(n=65,000).
Table7
CorrelationofNationallyAveragedHouseholdMPCEandFractionofMPCEspentondifferentAlcoholicBeveragesinUrbanareas.
Avg.HouseholdMPCE(Rs.) 1.00
FractionSpentonToddy(%) 0.65 *
*Allvaluesaresignificantfor1%confidencelevelduetotheverylargesizeofsample(n=65,000).
(normalgood)isviewedasinferiortoforeignimportedbeverages (luxurygood)(AdrianandFerguson,1987).InIndia,IMFLhasbeen foundtobefavouredbypersonsofhigherstatus,likebusinessmen, salariedpersons,militaryandgovernmentofficials(Chowdhuryetal., 2006).Marketingresearchhasdeterminedthatsocio-psychological antecedentsandbrandperceptionsignificantlyinfluencestatusconsumption(Shukla,2010).Inadditiontothissubstitutioneffectaway fromlow-cost ‘normalgood’ (toddyandcountryliquor)tomoreexpensive ‘luxurygood’ alcohol(beerandIMFL),theabsolutequantityof alcoholicbeveragesconsumeditselfisfoundtoincreaseasweclimbup theincomegroups.EventheincreaseintotalhouseholdMPCEfailsto keeppacewiththerisingexpenditureonalcohol,aswemovetohigher
incomegroups.Thus,higherconsumptionofmoreexpensivealcohol startstoeatintothetotalMPCEatafasterrate.Thisleadstoasituation wherethetopincomegroups(90th -100th percentile)spendnearly2% oftheiroverallmonthlyhouseholdexpenditureonalcoholinrural areas.
Incontrasttothesteadyincreaseinruralareas,asdiscussedabove, inurbanareasthefractionofaveragetotalhouseholdMPCEonalcohol remainslargelystableacrossincomegroups(between0.5%and0.8%). Themechanismofsubstitutionawayfrom ‘low-status’ beveragesto ‘high-status’ beveragesisalsoatplayinurbanareas,similartotherural areas.Thistrendofconspicuousconsumption(Chowdhuryetal.,2006; Gupta,2015)mighthavebeendrivenbyeasieravailabilityofexpensive
alcohol.,Inadditiontothesubstitutioneffect,thesteadyincreasein absolutequantityofalcoholconsumedaswemovetohigherincome groupsisalsoasprevalentinurbanareasasitisinruralareas.The nearlysteadyfractionofMPCEspentonalcohol(about0.6%)inurban areascanbeexplainedbythemuchhigheroverallMPCEofRs.10,400 (US$162)inurbanareascomparedtoRs.4,500(US$70)inruralareas forthehighestincomefractiles.Thus,unlikeinruralareas,theoverall MPCErisesinproportiontotheamountspentonalcoholintheurban areasandthefractionofoverallMPCEspentonalcoholremainsnearly constant.AnotherexplanationforlowerfractionofoverallMCPEon alcoholinurbanareasisthatatthehighestincomefractiles,theconsumptionofimportedforeignliquor(IFL)whichhasameagreshareof 0.8%inIndia(IndianAlcoholConsumption- TheChangingBehavior, 2017)couldalsobesizablewhichhasbeenexcludedinthisanalysis.If theexpenditureonIFLwasalsoincludedforthehighestincomefractilesinurbanareas,weexpectthe figureof0.6%torisemuchhigher.
ThepatternofhouseholdMPCEspentonalcoholwassimilarto quantityconsumed.Forthelowandmostmiddle-incomegroups,majorityoftheexpenditurewasontoddyandcountryliquor.However, withrisingincome,theexpenditureshiftedtowardsbeerandIMFL. ThismaybeduetothemuchhigherpriceperunitofIMFLandbeer comparedtotoddyandcountryliquor.
Astrongpositivecorrelationwasobservedbetweenfractionof MPCEspentonalltypesofalcoholandoverallmonthlyhousehold expenditure,especiallyinruralareas.Moreover,withincreasingMPCE, expenditureoncountryliquorandtoddydecreasedwhereasitincreasedforbeerandIMFL.Toddyconsumptionwashigheracrossmost incomegroupsforruralareasandstayednearlyconstantwithrising incomeforthepoorerincomegroupsinbothruralandurbanareas.The consequentsqueezeontheMPCE,especiallyforthepoorestincome groupsismanifestedinadecreaseonexpenditureonessentialslike healthcare,education,etc.(BasoleandBasu,2015; Gupta,2015).Both theabsolutequantityconsumed,andpercentageofincomespenton toddyandcountryliquorarelowerinurbanareas.
4.4.Limitations
Althoughwehaveusedmostgeographicallyandeconomicallyrepresentativedatasetinthecountrywithnation-widesamplecollection forcharacterizingalcoholconsumption,therearecertainlimitations. Theprobabilityofunderestimationisamajorconcern.Inagricultural households,growingtheirownfoodgrainsandlocallybrewingalcohol fromthemforpersonalconsumption,isrecordedasthefoodconsumed categoryinthissurvey.Thispracticeleadstooverestimationoffood consumptionandanunderestimationofalcoholconsumptionforagriculturalhouseholdsinthemonthlyconsumptionexpenditure.The clandestinenatureofalcoholmarketinthosestateswhichhaveenforcedprohibition(5outof36states/UnionTerritories),mayhave discouragedreportingofaccurate figuresforconsumptionfurther leadingtounderestimation.InthemethodologythattheNSSOfollows forcalculatingMPCEforthehousehold,theaveragemonthlyconsumptionexpenditureisdividedbythenumberofhouseholdmembers (bothadultsandchildren).Thistendstounderestimatethequantityof alcoholconsumedbydrinkingmembersofthehousehold(usuallyadult males)whoalsotendtobetheprimarywageearnersofthehousehold. Theyalsohavealargersayinthedecisionsregardingprioritiesofthe monthlyexpenditure.So,theburdenofanincreasefrom0.5%to1.7% ofahousehold’sMPCEonalcoholthatcausesareductioninconsumptionexpenditureforotheressentialslikefood,clothing,healthand educationisbornedisproportionatelybythewomenandchildrenofthe household.Hence,theresultspresentedinthispaperformonthlyexpendituremadeonalcoholserveasalowerestimateoftheactual figuresandshouldbeinterpretedaccordingly,especiallyforruralareasof thecountry.
5.Conclusion
AnationallyrepresentativedatasetfromIndiawasusedtostudythe patternofalcoholconsumptionandexpenditure.Indianhouseholds consumed0.18Lofallalcoholicbeveragespermonth.Itwas0.22Lin ruralareasand0.10Linurbanareas.Countryliquorwasthemost consumeddrinkacrossIndia.Itwasusedseventimesmorethantoddy andbeer,and3.5timesmorethanIMFL.Thehouseholdexpenditurefor procurementofthesebeverageswasRs.16.46(US$0.26)permonth. Thisaccountsfornearlyonepercent(0.98%)ofthemonthlyexpenditureonallgoodsforIndianhouseholds.However,thisproportion tendstobehigherforhigherincomegroups.Thisisespeciallyinrural areaswhereitwasalmostdouble-1.14%comparedto0.62%inurban areas.Itincreasedsteadilyfromlowest(0.5%)tohighest(1.7%)income groupinruralareaswhereasinurbanareas,itvariedalittle(0.5-0.8%) acrossincomegroups.Additionally,withariseinincome,households tendtoprefermoreexpensivealcoholicbeverages.Alcoholtaxation andpricingpoliciesshouldtakeintoaccountthepreferenceforaparticularbeverage,thetrendsinincomeandexpenditure,differencesin ruralandurbanareasaswellasthepotentialpublichealthimpactof consumptionofdifferenttypesofalcoholbeverages.
Conflict ofinterest
Nil.
Financialdisclosure
Therehasbeennosignificant financialconflictforthisworkthat couldhaveinfluenceditsoutcome.
Acknowledgement
Nil.
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