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Economic Survey: Average monthly income per agricultural household at Rs 10,218

Economic Survey: Average monthly income per agricultural household at Rs 10,218

The average size of household ownership holdings has declined from 0.725 hectare in 2003 to 0.592 hectare in 2013 and further to 0.512 hectare in 2019.

Net receipts from crop production increased by 22.6 per cent as compared to the previous SAS report of 2014. Net receipts from crop production increased by 22.6 per cent as compared to the previous SAS report of 2014.

The Economic Survey 2021-22, released on Monday, said that the average monthly income per agricultural household in the country stood at Rs 10,218 in 2019 as against Rs 6,426 in 2014.
 
The Economic Survey, tabled by Finance Minister Nirmala Sitharaman in the parliament, cited the data from the 'Land and Livestock Holdings of Households and Situation Assessment of Agricultural Households' (SAS) survey carried out by the National Statistical Office (NSO) during January 1, 2019 to December 31, 2019 period for these numbers.
 
The SAS report was released in September 2021, while the earlier SAS report was published in 2014.
 
"The SAS, 2021 reveals that the average monthly income per agricultural household, as per paid out expenses approach, works out to be Rs 10,218. The average monthly income per agricultural household was Rs 6,426 as per the last SAS Report of 2014 estimated by the same approach," the Survey said.
 
While net receipts from crop production increased by 22.6 per cent as compared to the previous SAS report of 2014, net receipts from other sources increased by 92.6 per cent with increase in overall net receipts at 59 per cent.
 
The Survey said that crop income, with a share of 37 per cent, continues to be an important source of farmer's income, but there is a visible diversification in the sources of income of the farmers.
 
However, the SAS reports also show the increasing fragmentation of holdings. The average size of household ownership holdings has declined from 0.725 hectare in 2003 to 0.592 hectare in 2013 and further to 0.512 hectare in 2019.

 
"Increasing number of small farmers and increasing importance of livestock sector requires increased focus on the measures like development of small farm technology, boosting non-farm businesses and development of allied activities including animal husbandry, dairying and fisheries," the Survey said.
 
Overall, the agriculture sector has experienced buoyant growth in the last two years, it said. The sector, which is the largest employer of workforce, accounted for a sizeable 18.8 per cent in Gross Value Added (GVA) of the country during 2021-22, registering a growth of 3.6 per cent in 2020-21 and 3.9 per cent in 2021-22.
 
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"Growth in allied sectors, including livestock, dairying and fisheries has been the major driver of overall growth in the sector," it said.
 
Allied sectors, including animal husbandry, dairying and fishing are steadily emerging to be high growth sectors, with livestock sector growing at a CAGR of 8.15 per cent over the five years ending 2019-20. The Survey said that this sector has been a stable source of income across groups of agricultural households accounting for about 15 per cent of their average monthly income.
 
This improvement in the contribution of allied sectors is in line with the recommendations of the 'Committee on Doubling Farmers' Income' which has suggested a greater focus on allied sectors to improve farmers' income, the Survey said.
 
It also called for a focused and targeted approach to ensure higher public and private investment in the agriculture sector for attaining higher growth rate.

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"Higher access to concessional institutional credit to farmers and greater participation of private corporate sector, whose investment rates are currently as low as 2 to 3 per cent in agriculture, may help in improving private investment in agriculture. Private corporate investments need to be crowded in by offering an appropriate policy framework and increase in public investment along the entire agricultural value system," it suggested.