Broad income disparity remains a daunting challenge for the agricultural households in India, as indicated by a recent survey from the National Bank for Agriculture and Rural Development (NABARD). This report reveals profound inter-state differences in household income among Indian farmers.
The Income Disparity Landscape
The survey presented striking variances in annual agricultural income across different regions in India. The highest of this range is reported at Rs 16,020 in Punjab, while Andhra Pradesh records the lowest at Rs 5,842. Notably, post-consumption expenditure, the surplus left with these households also sees considerable differences. It stands at a meager Rs 95 in Andhra Pradesh and increases to an impressive Rs 4,314 in Punjab.
Widening Gap in the Agricultural Sphere
Further insights from the survey depict a stark picture of wealth distribution among farming households. Astonishingly, 85% of the farmer households in India command only 9% of the total income. In contrast, the top 15% corners 91% of overall earnings. When juxtaposed with the overall income inequality in India, the numbers in the agricultural sector are strikingly high.
Agricultural Centre Of Debt?
The report also highlights that 43% of India’s indebted households are those engaged in farming. This information becomes profound in light of the government’s target of doubling farmers’ income. Land possession emerges as a significant variable in determining income from cultivation. It accounts for around half of the income inequality, bringing attention to the need for land reforms.
| State | Average Agricultural Income | Surplus After Consumption |
|---|---|---|
| Punjab | Rs 16,020 | Rs 4,314 |
| Andhra Pradesh | Rs 5,842 | Rs 95 |
Landholding: The Prime Variable
The significance of landownership as a determinant of income in farming is further emphasized when we look at the earnings of different farmer groups. Here, those with the smallest landholdings earn the least. India primarily consists of small and marginal farmers – about 85% of farmers in India hold less than two hectares (Ha) of land. This demographic takes longer to increase their income compared to large farmers.
Delving Into Agrarian Reforms and Their Promises
The findings of this survey give a fresh perspective on understanding the initial promise of agrarian reforms in India. While it aimed at distributing land to the landless and providing ownership titles to cultivators, it falls short in ensuring egalitarianism among the agricultural community.
The Green Revolution of the 1960s had focused on boosting productivity and yield. However, the intervening years saw landholdings becoming highly fragmented. Marginal landholdings tripled over the past 40 years, raising critical questions about the effectiveness of these reforms.
This background serves as an essential reminder for the ambitious aim of the Ashok Dalwai committee to double farmers’ income by 2022. Addressing the highlighted inequalities would be paramount to realizing this goal.