Determinants of Consumption Probability and Demand for Fruits in India

Abstract

The study has identified the determinants of choice probability and amount of demand for major fruits at the household level in India by utilizing consumer expenditure survey data collected by the National Sample Survey Organization (NSSO) for the years 2004-05 and 2011-12. Heckman sample selection model has been used to estimate the functional relationship between household level characteristics and fruit consumption as the zero expenditure is encountered for some households in the data set. The study has revealed that increase in prices of fruits has an inverse relationship with fruits consumption. The consumption expenditure on fruits in India has increased with increase in income with time. Considering high prices and lower production of fruits, the government should adopt appropriate measures to increase plantation of fruit crops. There is also the need to generate awareness regarding health effects of fruit consumption, particularly among younger generation.