Does Pan, Tobacco & Intoxicants Consumption Respond with Prices and Expenditure in India?

  • Alok Pandey DAV PG College, Banaras Hindu University, Varanasi
Keywords: Households Consumption Expenditure, Elasticity, Pan Tobacco & Intoxicants


In the present paper an attempt has been made to estimate the responsiveness of prices and household expenditure on consumption of pan, tobacco and intoxicants at household level in rural and urban areas of All India for the various deciles class (economic status) of family by using NSSO 66th i.e. quinnquenial rounds of Household expenditure unit level data for the year 2009-10. The expenditure on pan, tobacco and intoxicants at household level is inelastic. The marginal propensity to consume at household level for pan, tobacco and intoxicants is low in India. Paper pointed out that rupee increase in the per capita expenditure will increase consumption of pan in rural region while for tobacco and intoxicants in urban region.


Abernethy, A. M., and Jesse E. Teel, (1986), “Advertising Regulation's Effect upon Demand for Cigarettes” Journal of Advertising, 15(4), pp. 51-55.
Atkinson, Antony B., (1998), “Poverty in Europe”, Oxford University Press, Blackwell.
Badami, S., Sujay R Rai, Suresh B. (2006), “ In-vitro antioxidant properties of Indian traditional Paan and its ingredients, Indian Journal of Traditional Knowledge, 3(2), pp 187-191.
Ball, K., and Simon Chapman, (1993), “Tobacco Consumption in Africa”, Tobacco Control, 2(4), p. 334.
Brown, A. and A. Deaton, (1972), "Survey in Applied Economics: Models of Consumer Behaviour," The Economic Journal, 28(328), December 1972, pp.1145-1228.
Burney N. A. and A. H. Khan, (1991), “Household Consumption Patterns in Pakistan: An Urban-Rural Comparison Using Micro Data”, The Pakistan Development Review, 30(2) , pp. 145-171
Choudhury, K. , S.M.A. Hanifi, Shehrin Shaila Mahmood, and Abbas Bhuiya (2007), Socio Demographic Characteristics of Tobacco Consumers in a Rural Area of Bangladesh , Journal of Health, Population and Nutrition, 25(4), pp 456-464.
Deuraseh, N., (2003), “Is Imbibing Al-Khamr (Intoxicating Drink) for Medical Purposes Permissible by Islamic Law?” Arab Law Quarterly, 18( 3/4), pp. 355-364.
Engel, E. (1895). Die Lebenskosten Belgischer Arbeiter-Familien Fruher und Jetzt, lSI Bulletin, 9(1).
Flores G. and J. Krishnakumar, (2004), “Demand System Estimations and Welfare Comparisons: Application to Indian Household Data”, working paper of the Department of Econometrics, University of Geneva, (Cahier 2004.13).
Guha, P., (2006), “Betel Leaf: The Neglected Green Gold of India” J. Hum. Ecol., 19(2), pp 87-93.
Gupta, D. B. (1968), "A Comparison of Consumption Patterns Uttar Pradesh and Madras, A Study of Inter Regional Variations With Reference to India," Indian Economic Review, Vol. III (New Series), pp. 129-146.
Gupta, D. B. (1973), "Consumption Pattern in India," Tata McGraw Hill Publishing Company Ltd., New Delhi.
Gupta, I., and D. Sankar, (2003), “Tobacco Consumption in India: A New Look Using Data from the National Sample Survey”, Journal of Public Health Policy, 24(3/4), pp. 233-245
Houthakker, H. S., (1957), " An International Comparison of Household Expenditure Patterns Commemorating the Centenary of Engel's Law," Econometrica, Vol. 25,.
Iyengar, N. S. and L. R. Jain, (1974), "Changes in the Pattern of Consumption in Indian Artha Vijnana, 16( 3), September 1974, pp. 231-266.
Iyengar, N. S. and N. Bhattacharya (1978), "Studies on Consumption Behaviour in India" A Survey of Research in Economics, Econometrics, Vol. III, pp. 176-232, Allied Publishers, New Delhi.
Jain L. R., (1983), “Effects of Household Size on Household Expenditure Pattern: An Application of an Addilog Engel Model” Sankhyā: The Indian Journal of Statistics, Series B (1960-2002), 45(3), pp. 431-446.
Klein, L. R., and H. Rubin, (1947), “A Constant Utility-index of the Cost of Living”, Review of Economic Studies, 15, pp 84-89..
Ko, Y. C., Chiang, T. A, Chang, S. J, Hsieh, S. F. (1992). "Prevalence of betel quid chewing habit in Taiwan and related sociodemographic factors." J Oral Pathol Med. 21(6): 261-4.
Mack, T. (2001). The new pan-Asian Paan problem” Lancet , 357(1638), p 9.
Mäkelä, K., (1983), “The Uses of Alcohol and Their Cultural Regulation”, Acta Sociologica, 26( 1), pp. 21-31
Mills, J. H., (2007), “Drugs, Consumption, and Supply in Asia: The Case of Cocaine in Colonial India, c. 1900-c. 1930” The Journal of Asian Studies, 66( 2), pp. 345-362
Nguyên Xuân HiênSource, (2006), “Betel-Chewing in Vietnam. Its Past and Current Importance” Anthropos, pp. 499-518,, 17/08/2013.
NSSO Expert Group on Non-sampling Errors, (2003), “Suitability of Different Reference Periods for Measuring Household Consumption Results of a Pilot Survey”, Economic and Political Weekly, 38( 4), pp307-321.
NSSO, (1996), Level and pattern of consumer expenditure 5th quinquennial survey 1993-94”, National Sample Survey Organization, Ministry of Statistics and Program Implementation, Government of India.
NSSO, (2010), “Note on Sample Design and Estimation Procedure of NSS 66th Round”, National Sample Survey Organisation, Survey Design Research Division, March.
NSSO, (2011), “Level and Pattern of Consumer Expenditure 2009-10”, National Sample Survey Organization, Ministry of Statistics and Program Implementation, Government of India.
Ross W., (1976), “Estimation of Household Demand Responses using Cross- Section Data: A System Interpretation of Podder’s Result”, Working Paper No. SP-02, A joint Study by the Australian Bureau of Statistics, The Industries Assistance Commission, the Department of Labor and Immigration and the department of Manufacturing Industry, Melbourne, Australia.
Saha, S. (1980), “Some Further Estimates of Engel Elasticities for Rural and Urban India”, Sankhya, vol 42, Series D Pt, 1, 2 pp127-150
Shahabuddin Q., (1989), “Pattern of Food Consumption in Bangladesh: An Analysis of Household Expenditure Survey Data”, The Bangladesh Development Studies, 17( 3), pp. 101-117.
Sinha, R. P., (1966), “An Analysis of Food Expenditure in India”, Journal of Farm Economics, 48( 1), pp. 113-123.
Talukder, R. K., (1993), “Patterns of Income Induced Consumption of Selected Food Items in Bangladesh”, The Bangladesh Development Studies, 21( 1), pp. 41-53.
Upendar, M. (1999), "Estimate of Expenditure Elasticities of Demand Based on Time-series Data" Finance India, XII( 3), September 1999, pp. 677-686.
VanWyk CW, Stander I, Padayachee A, Grobler­Rabie AF.,(1993), “The areca nut chewing habit and oral squamous cell carcinoma in South African Indians: A retrospective study”, S Afr Med J, 83 ( 6), pp 425-9.
How to Cite
Pandey, A. (2015). Does Pan, Tobacco & Intoxicants Consumption Respond with Prices and Expenditure in India?. Journal of Global Economy, 11(3), 167-187. Retrieved from