It im plies that there has been considerable reduction in inequality in the earlier period, although the average per capita consumption expenditure did not change in real terms between 1999-2000 and 2004-2005. The methodology used forthe estimation until 2004-2005 was anchored on a calorie norm of 2,400 K.Cal per day per person in rural areas and 2,100 K.Cal per day per person in urban areas. The poverty lines for rural and urban areas in each of the major states were determined as the MPCE required for deriving the required calorie norm.