Impact of Food Inflation on BPL and APL Household Consumption - A Study in Kannur District, Kerala

Background/Objectives: Growth with stability is essential condition for attaining sustainable economic development. Fluctuations in prices create an atmosphere of uncertainty which is not conducive to developmental activity. The present study investigates the impact of food inflation on household consumption of APL and BPL categories in Kannur district of kerala.

Methods/Statistical analysis: The present study is based on primary and secondary data. The secondary data comprises various references which already existed in the published form such as research papers, articles, books and websites relating to food inflations. The primary data were collected from urban households of Kannur district in Kerala, India. A sample size of 50 households has been drawn randomly from the population of Kannur districts i.e. 25 each from APL and BPL category. Henry Garrett ranking techniques was used to evaluate the problem faced by households in food consumption.

Findings: The poor, who spend large shares of their income on food, are most adversely affected. Since rising food prices command a larger share of a limited budget, the poor are forced to shift their expenditures to cheaper diets with less proteins and micronutrients. About 72 percent of households have spend more than 50 percent of income on food consumption. 60.4 percentage of households has reduced the consumption of food items from their past consumption level. 58.4 percent of BPL households has reduced the consumption of food items including pulses, egg, meat& fish, cereals, fruits and vegetables. It was only48.67 percent of APL households has reduced the consumption of pulses, egg, meat& fish, cereals, fruits and vegetables.

Improvements/Applications: The government must enact a law where by the government get the power to control the price of essential commodities and make it mandatory to publish those prices in the main news papers and other mass medias. To implement policies for promoting agriculture at household level and supply seeds and fertilizers to households at a subsidized rate.