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Abstract
The study empirically revealed striking difference in the consumption pattern of Indian households
across rural and urban sectors, geographical regions and income categories. The findings were in
conformity with Engel’s law and Bennett’s law of consumption. Expenditure elasticities of food
commodities were estimated using LA-AIDS demand system and food demand was projected for the year
2020. The expenditure elasticities of high value agricultural commodities (HVACs) like milk, nonvegetarian
products, fruits, etc. were higher than staple food, i.e., cereals. Further, wide inter-regional
variations in the household demand for food commodities necessitates to match the demand and supply at
disaggregate level and to remove the bottlenecks in production of food commodities in the respective
region to fulfil the demand.