Trends and Determinants of Farmer Households’ Income in India: A Comprehensive Analysis of SAS Data

A. Narayanamoorthy and .S. Sujitha

Indian Journal of Agricultural Economics, 2021, vol. Volume 76, issue Number 4

Abstract: The issue of farm income has occupied the centrestage of discussion in India’s agricultural sector after the publication of the first report on Situation Assessment Survey (SAS) of farmer households for the year 2002-03, which revealed the pathetic income level of farm households. This discussion has continued after the publication of the second SAS report for 2012-13 and now, the third report of SAS has been published (in September 2021) for the year 2018-19. No detailed study has been carried out to find out whether the farmer households’ income has increased utilising all the three-time points of SAS data covering different states. An attempt has been made in this study to analyse the trends and determinants of farmer households’ income by employing growth and regression analysis. While revealing the pathetic income level of farm households over time, the study shows a deceleration in the growth rate of total annual income between 2012-13 and 2018-19 as compared to the period between 2002-03 and 2012-13. The net income realised from crop production registered a negative growth between 2012-13 and 2018-19, which grew at a rate of 3.81 per cent per annum during the previous period. Close to 70 per cent of the states have also registered negative growth in crop income between 2012-13 and 2018-19, which is not the case in other sources of income. The regression analysis suggests that the percentage of irrigated area to cropped area, average literacy rate of farmer households, expenditure on yield increasing inputs and the total monthly expenditure on crop production appear to be the important determinants of the income of the agricultural households.

Keywords: Agribusiness; Consumer/Household Economics; Crop Production/Industries; Labor and Human Capital (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ags:inijae:345182

DOI: 10.22004/ag.econ.345182

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