Abstract:
Recent food policy changes are expected to play an
important role in promoting food intake, especially of
the low income group in Sri Lank$. The few studies that
have been conducted on consumer behaviour have ignored
the endogenous nature of prices and total expenditure.
The major objectives of the study are to examine food
consumption pattern, and to estimate price and
expenditure elasticities of selected food.
Food consumption pattern was studied using data
collected in 1988. Price and expenditure elasticities of
the selected starch (rice, wheat flour, manioc) and
proteins (beef, mutton, chicken, fresh fish, dried fish)
food were estimated using the data from the reports
published by the Department of Census, and Statistics and
the Central Bank of Sri Lanka.
The food consumption pattern categorized
by different income groups was analysed using simple
tables. A Chi-Squared test was used to examine the
differences of food intake between food-stamp recipients
(FSR) and non-receipients (FSNR). The price and
expenditure elasticities were estimated with finite
version of the Rotterdam model.
The results show that consumption of starch food
increases with the rise in household income upto
Rs.25,000 but decreases with further rises in income.Above an annual income of Rs.25,000. consumers tend to
consume more food with higher nutritive values such as
pulses,- meat, fish, and milk and less of starch food. On
the average, consumption of starch, pulses, meat and
fish, eggs, powderd milk, and fresh milk are 2343, 142,
219, 5, 44, and 219, grams, per day, respectively.
Consumption of shelled coconut, oil, vegetables,
chillies, and condiments are 431, 61, 753, 51, and 31
grams per day, per household, respectively. Further,
consumption of above foods between FSR and FSNR shows
significant differences except consumption of eggs,
chillies, and condiments.
The intake of energy, protein, calcium, iron,
thiamin, riboflavin, and niacin vary with income which
explains the diverse consumption patterns of different
income groups. Among these, intake of energy, protein,
and calcium is significantly different between FSR and
«.
FSNR.
The partial expenditure elasticities for rice,
wheat flour, and manioc are 1.09, 0.25, and 0.22,
respectively. Partial expenditure elasticities for beef,
mutton, chicken, fresh fish, and dried fish are 0.037,
0.223, 0.556, 1.345, and 0.98, respectively. This
shows that an increase in income Results in an
increase in consumption of these food items.'
The compensated partial own price elasticities for
rice, wheat flour, and manioc are -0.059, -0.355, -0.804
respectively. This implies that manioc is more price
responsive than the other two. Further, cross price
elasticities for these foods indicate that rice and
wheat flour are substitutes while manioc is a complement
for both rice and wheat flour. This is due to the fact
that most consumers in Sri Lanka use manioc as a curry
specially in the rural sector.
The compensated partial own price elasticities for
beef, mutton, chicken, fresh fish, and dried fish are
-0.245, -0.962, -3.323, -0.189, and -0.368, respectively.
This indicates that mutton and chicken are more price
responsive than the others. The cross price elasticities
for these food indicate that they are substitutes except
beef and mutton compared with chicken.
Awareness of food consumption pattern and
elasticities are important and should be taken into
account when formulating food policy programmes. An
increase in income results in an increase in demand for
food having a higher nutritive value. Hence, any
development strategy must be accompanied by an increased
supply of highly nutritive food to avoid unfavourable
inflationary effects.