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Rural Telangana Leads India in Spending on Pan, Tobacco, and Alcohol, Surpassing National Average Significantly

In Telangana
January 23, 2026
Deccan Alert | Rural Telangana Leads India in Spending on Pan, Tobacco, and Alcohol, Surpassing National Average Significantly

In a striking revelation, the latest Household Consumption Expenditure Survey (HCES) 2023-24 released by the Ministry of Statistics and Programme Implementation (MoSPI) has highlighted that rural households in Telangana have emerged as some of the highest spenders on pan, tobacco, and alcohol in India. The survey places Telangana among the top states in terms of expenditure on these intoxicants, second only to certain northeastern states.

The survey data indicates that rural Telangana households allocate an average of Rs 396.06 per person per month towards these substances—more than double the national rural average of Rs 158. This trend underscores a concerning pattern of consumption habits in rural areas, with intoxicants accounting for about 7.3% of the total monthly per capita expenditure (MPCE)—the second-highest figure nationwide.

Rural Telangana’s spending on intoxicants is noteworthy as it often rivals or even surpasses urban consumption levels in specific categories such as Indian-made foreign liquor (IMFL) and beer. Economists attribute this trend to both higher income levels and, more importantly, spending priorities. In some rural households, nearly one-sixth of the food-related budget is being diverted towards stimulants like tobacco and alcohol.

More alarmingly, in several low-income families, monthly expenditure on gutkha and khaini has surpassed spending on education. The all-India average shows households spent an average of Rs 158 per person per month in rural areas and Rs 166 in urban areas on pan, tobacco, and intoxicants during the survey period. While urban households generally spend more in absolute terms, rural households devote a larger share of their budgets to these products.

The HCES 2023-24 underlines the persistent role of tobacco and alcohol in shaping consumption patterns across India, particularly in rural areas such as Telangana. As the survey data unfolds, it becomes increasingly important to address the public health implications associated with these trends and consider targeted interventions aimed at curbing excessive spending on intoxicants and promoting a balanced and healthy lifestyle among Indian households.