Millets’ Consumption Probability and Demand in India: An Application of Heckman Sample Selection Model

Abstract

This paper aims to analyze the determinants of the choice probability of millet consumption and the demand for major millets at household level in India. For this, we used consumer expenditure survey data collected by the National Sample Survey Organization (NSSO) for the years 2004-05 and 2011-12. Heckman sample selection model was used to estimate the functional relationship between household level characters and millet consumption as zero expenditure is encountered for many of the households in the data set. The analysis revealed that the prices of millets and other food commodities had statistically significant effect on both millet consumption probability and the quantity demanded of millets while per capita income was not an important determinant. It is confirmed that the millets continue to be treated as inferior goods in India. Besides, age of household head has a positive relationship with the millet consumption, whereas larger household size and higher educational level decreased the probability of millet consumption and quantity demanded.