EFFICACY DYNAMICS OF TEA AND COFFEE CONSUMPTION PATTERNIN INDIA AND ITS DETERMINANTS AT HOUSEHOLD LEVEL

P.G. CHENGAPPA¹*, M. UMANATH², K. VIJAYASARATHY³, B.N. PRADEEPA BABU^4
1Institute for Social and Economic Change, Nagarabhavi, Bangalore, 560072, India
²Institute for Social and Economic Change, Nagarabhavi, Bangalore, 560072, India
³Institute for Social and Economic Change, Nagarabhavi, Bangalore, 560072, India
⁴Institute for Social and Economic Change, Nagarabhavi, Bangalore, 560072, India
* Corresponding Author : chengappaecon@gmail.com

Received : 21-07-2016     Accepted : 12-08-2016     Published : 27-10-2016
Volume : 8     Issue : 51       Pages : 2378 - 2383
Int J Agr Sci 8.51 (2016):2378-2383

Keywords : Coffee, Tea, Consumption, Heckman, Maximum Likelihood
Conflict of Interest : None declared
Acknowledgements/Funding : None declared
Author Contribution : None declared

A perceptible change in the quantity consumption and expenditure pattern on tea and coffee was evident across income groups and location of households in India. Low-income households consumed less quantity of these beverages as compared to middle and high-income households. Relatively, the proportion of expenditure on tea and coffee of low-income households was lower than the middle and high-income households in 2004-05, which decreased in all income groups in 2011-12. Similarly, rural households consumed lower levels of coffee and tea than the urban households, which decreased considerably over a period of time. Whereas, compared to tea, per capita consumption expenditure on coffee is very low and has shown a sharp decline across income groups over a period of time. The Heckman Sample Selection Model indicated house hold characters such as per capita income, education and urbanization as the major factors affecting both the preference for and expenditure on tea and coffee in India. These results are useful for developing the policy design and marketing strategies for the promotion of these two beverages in India.