In a welcome development for agriculture and allied sectors, the recent National Sample Survey (NSS) 77th round Situation Assessment of Agricultural Households (SAS) survey showed a considerable rise in farmers’ incomes.
Conducted during the Kharif and rabi seasons of 2018-19, the survey provides insight into a farmer’s investment behavior, level of indebtedness, and income earned from different activities.
Rise in farmers’ income
As per the survey, the average monthly income of a farmer from various sources which include wages, leasing out land, crop production, livestock, and non-farm business – has increased from Rs 6,426 in FY 2012-13 to Rs 10,218 during 2018-19.
Notably, the assessment shows an average annual rise in income at about 8% in nominal price and 6% in real price from 2011-12. The report also provides the monthly income of farmers to be the highest in agriculturally advanced states – Punjab and Haryana.
Methodology behind an average monthly income of ₹10,218
The survey considers agricultural household income from various sources as a member of an agriculture household may be indulged in a number of agriculture and non-agricultural activities. The assessment considers wages of the agricultural household followed by income from crops. The wages from different sources like agriculture wages for a variety of farm activities as well as Mahatma Gandhi National Rural Employment (MGNREGS). If the average monthly income of the agriculture household is ₹10,218 as mentioned in the report, then the average daily income would be 10,218×12/365= ₹336.
To understand in a tabular manner, let us look at the NSS Report No. 587: Situation Assessment of Agricultural Households and Land and Livestock Holdings of Households in Rural India, 2019
Monthly Income in Rupees Household Percentage:
- Income from wages: Rs 4,063 – 39.8%
- Income from crop production: Rs 3,798 – 37.2%
- Income from farming of animals: Rs.1,582 – 15.5%
- Income from non-farm business: Rs 641 – 6.3%
- Income from leasing out of the land: Rs 134 – 1.3%
Average monthly income ₹10, 218
Uplifting small farmers
Prime Minister Kisan Samman Yojana (PM Kisan), direct income support to small and marginal farmers has been a landmark initiative. Similarly, the whole idea of Jan Dhan, Mobile, and Aadhaar trinity has been empowering the farmers throughout the country.
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