Peer review

India has witnessed a rapid rise in personal income, increased spending on infrastructure and construction and urbanisation in the past three decades. Households have changed their eating habits by purchasing more processed food. This study examines the factors affecting India's consumption of and expenditures on processed foods. The study uses information from three rounds of data collected by the National Sample Survey Organisation (NSSO) and probit and selection bias-controlled tobit and ordinary least square (OLS) estimation procedures to estimate the empirical model. Findings reveal that the average expected per capita monthly spending on processed foods increased by about 77% between 1990–1991 and 2011–2012. An increase in total consumption expenditure and rapid urbanisation were the primary drivers of consumption and spending on processed foods by Indian households. Secondly, households with salaried or stable incomes were more likely to consume processed foods than other households. This study suggests public and private initiatives to improve human health and nutritional outcomes in Indian households. The government should strengthen food safety regulations related to processed food preparation, distribution and consumption.

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