Determinants of Consumption Probability and Demand for Millets: An Application of Heckman Sample Selection Model

This paper has identified the determinants of choice probability of millet consumption and the demand for major millets at household level in India. The study has used 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 characteristics and millet consumption. The analysis has revealed that prices of millets and other food commodities have statistically significant effect on both millet consumption probability and quantity demanded of millets while per capita income is not an important determinant. It has been confirmed that the millets continue to be treated as an inferior commodity in India. Besides, age of household-head has a positive relationship with millet consumption, whereas larger household size and higher educational level decrease the probability of millet consumption and quantity demanded.