Context
Per capita cereal consumption in India has declined, while usage in processed foods, feed, and fuels has increased. Official data shows cereal production exceeding overall consumption, though some indicators remain unclear. Understanding these trends is crucial for insights into evolving dietary habits and economic factors in India.
Details about it
Increased Production: The FAO report reveals that through till now India has been able to enhance production of cereal grains by over 1. Five times in the last twenty years has reached up to three hundred and three accidents. 196 million tonnes in 2022-23(Comfort meal 2016) 6 million tonnes of plastic were generated in 2012 from the total amount of 8 million tonnes. The level of annual exports of crude steel reached 4 million tonnes in 1999-2000.
Shift in Usage: A large part of cereal crops is now being utilised for processed food items (bread, biscuits, noodles, etc. ), animal feed, industrial starch and, for the production of ethanol fuel and the like other uses and not necessarily for human consumption.
Declining Per Capita Consumption: NSSO states that monthly per capita cereal intake, as obtained from the survey, has come down to 11. From 1999-2000 the total population has increased from 78,000 to 8. 97 kg in 2022-23.
Exports and Processing: India exported a record 32 million units during the fiscal year ended March 31, 2007. About 3 million tonnes of cereals in the 2021-2022 year, while as for usage, processed food forms and industrial application also take a substantial part of cereal.
Surplus and Government Stocks: While there is evidence that disproportionate productivity and utilization have arisen; further questions regarding the supply- demand balance can be raised and excess grains mobilized by government bodies, the reduction of market prices and the credibility of the reported production rate due to high cereal inflation and poor government stocks.
Steady Demand for Traditional Cereals: Rice, wheat and other grains remain the most popular food items in India because of their strong cultural and social associations as well as majority decision to focus on grains as our staple foods.
Production Fluctuations: The national grain production estimate for the year 2023/24 is marginally lower from earlier estimate with negative change expected in rice and corn but higher in wheat and barley.
Rising Health Consciousness: People are becoming more conscious about the foods they consume hence the market has shifted towards the nutritional cereals with high fiber and protein content.
Growth in Breakfast Cereals: The India’s breakfast cereal market is rapidly growing as a result of increasing urbanization, increasing disposable households’ income and modification in life Style.
Pandemic-Driven Demand: The situation about the COVID-19 pandemic sped up the consumption of the packaged and ready-to-eat breakfast cereals because during the lockdowns people and businesses required appropriate convenience.
Innovative Product Launches: Manufacturers such as Kellogg, Nestle, and Pepsico are progressive and have been introducing new products in the market to adapt to the changing needs of the market because most individuals are now conscious about their health, and having breakfast is now convenient with readily available foods.
Convenience Factor: Due to their portability, causes them to be preferred by working class urban dwellers or any busy family, contradicting the usual stiffness and long preparation of break fasts.
Competitive Market Landscape: The economy segment of breakfast cereals market in India is a tough one because both the domestic as well as the global players are continuously adopting tactics like launching new products or expanding its business and others to consolidate their position in the market.
Evolving Consumer Preferences: The changing palate of the consumer also supports low-carb, multigrain, and fortified cereals due to new age customer trends.
Market Accessibility: Increased awareness about the e-commerce business and most recent, the modern retail channels, has contributed towards increased demand and availability of these cereals within the urban and semi urban populations.
Conclusion
Another feature of the cereal market in India is the fact that despite the great focus being shifted towards Breakfast Cereals market it is still dominated heavily by traditional cereals. Still rice and wheat remain the main staples of the Indian diet, yet constant changes and focusing on healthy grains, convenience and RTÉ cereals make the market more diverse. These changes are due to rising urbanisation, higher awareness towards leading a healthy life, improved disposable income and ultimately, changes in lifestyles, thus holding a great potential for the growth and innovations in the Indian cereal market. Denying the fact that cereal market has a strong foundation in India, further enhancing of which depending on the change in consumer preference seems to bring in a great advancement as per the requirement of tradition along with the advance world.
Source: The Indian Express
UPSC Prelims Practice Question
Q. Which of the following statements about cereal consumption and production trends in India is/are correct?
- Per capita cereal consumption in India has been increasing steadily over the past two decades.
- The utilisation of cereals in processed foods, animal feed, and biofuels has increased.
- Official statistics indicate that cereal production in India exceeds overall consumption.
- There is no ambiguity in the indicators related to cereal production and consumption in India.
Select the correct answer using the code given below:
a) 1 and 4 only
b) 2 and 3 only
c) 1, 2, and 3 only
d) 2, 3, and 4 only
Ans (b)
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