The NSSOI, in their 2015 report, mentioned that around 15% of the rural households bought LPG in India from an observed tenure from 2011-2012.The figure further goes down as we move from the urban regions to the rural, since only 11% of the adopted LPG is used as a primary cooking fuel, usually termed as the ‘sustained and exclusive’.
Although global usage of LPG has tended to grow significantly, the rural areas are still not appropriately equipped with this development. Pieces of literature around the web deal with two crucial aspects of this alleviate shortcomings: how to raise the LPG adoption rate in rural areas, and how to keep the pace elevating by eliminating the traditional cooking systems.
The affordability of the LPG in rural India may be studied using two different templates. Firstly, of course, with the introduction of subsidies by the government, and secondly, by the analysis of the rural economy. As far as the domestic platform is concerned, the Indian government provides grants on LPG equivalent to 8 billion dollars USD.
More in-depth analysis of the system reveals that the universal subsidy regime (keeping all the income levels into considerations), has failed to enhance the trend of LPG adoption and their use in the low-income category of people communities.
Although usage of LPG has tended to grow significantly, the rural areas are still not appropriately equipped with this development. Image courtesy to Livemint.
According to the studies, the communities with higher financial stability receive more than 50% of the LPG subsidies, whereas the groups with low income receive only 15% of the same. On an additional note, people in urban areas spend around 3.3% of their monthly expenditure on LPG compared to 8% with communities in rural areas.
The idea of providing subsidies initially planned for the weaker section of the population fails miserably as it is not benefiting the consumers in rural areas.