Last update:09 November 2024, 10:14 IST

The Nabard report shows that the average monthly income of farm households in India increased by 53% in the five-year period from 2016-17 to 2021-22, but the increase was not proportional across states.

In terms of percentage, Andhra Pradesh, Tamil Nadu, Sikkim and Maharashtra were the biggest gainers, the analysis shows. (Getty)

The average monthly income of agricultural households in Punjab was Rs 23,133 in 2016-17, which increased to Rs 31,433 in 2021-22, adding over Rs 8,300 per month – the highest among states in India. Similarly, in Haryana, the average monthly income of farm households increased by about 40% from Rs 18,496 to Rs 25,655 during the same period, official data analyzed by News18 shows.

Punjab and Haryana were the top two states in both years – 2016-17 and 2021-22 – with the highest average monthly income of farm households, according to the latest data from the National Bank for Agriculture and Rural Development (Nabard) across India Rural Financial Inclusion Survey (NAFIS) 2021-22 released last month. In both the years, Kerala was ranked third in India.

The report shows that the average monthly income of farm households in India increased by 53% over the five-year period – from Rs 8,931 to Rs 13,661. However, this increase is not shared proportionally among the states. While several states saw significant increases in the average monthly income of agricultural households, at least four states continued to have an income below 10,000 lei.

In terms of percentage, Andhra Pradesh (78 per cent), Tamil Nadu (71 per cent), Sikkim (68 per cent) and Maharashtra (68 per cent) were the top gainers, the analysis showed. In Andhra Pradesh, the average monthly income of farm households increased from Rs 6,920 in 2016-17 to Rs 12,294 in 2021-22. In Tamil Nadu, the jump is from Rs 9,775 to Rs 16,737, while in Maharashtra it is an increase from Rs 10,268 to Rs 17,208.

Sikkim had an average monthly farm household income of Rs 8,603 in 2016-17, which improved to Rs 14,490.

A total of 10 states saw a higher increase in the average monthly income of agricultural households than the national average of 53 percent – ​​Andhra Pradesh (78 percent); Tamil Nadu (71 percent); Sikkim (68 percent); Maharashtra (68 percent); Mizoram (63 percent); Uttar Pradesh (63 percent); Assam (58 percent); Karnataka (57 percent); Madhya Pradesh (56 percent); and Telangana (55 percent).

On the other hand, against India’s average increase of Rs 4,730 in monthly farm household income, at least 12 states saw a bigger jump – Punjab (8,300); Haryana (7,159); Tamil Nadu (6,962); Maharashtra (6,940); Mizoram (6,226); Karnataka (6,032); Sikkim (5,887); Kerala (5,830); Assam (5,701); Andhra Pradesh (5,374); Telangana (4,923); and Gujarat (4,860).

NAFIS was launched for the first time in 2016-17 to get a comprehensive picture of the economic situation of rural households and measure their degree of financial inclusion. The report published last month was the second in the series.

Apart from Nabard, the National Sample Survey Office (NSSO) under the Ministry of Statistics and Program Implementation also conducted a situation assessment survey (SAS) of agricultural households in 2018-19 and 2012-13. Data from this report has been used in graphs to show the steady increase in farmer’s income.

Bihar, Odisha and Jharkhand with lowest monthly income

In 2016-17, at least 18 states had an average monthly farm household income below Rs 10,000. While 10 others had this income above Rs 10,000 and Punjab was the only state where it was above Rs 20,000.

In 2021-22, three states had an average monthly income of over Rs 20,000, including Punjab, which was over Rs 30,000. The second and third positions were secured by Haryana (Rs 25,655) and Kerala (Rs 22,757) respectively.

At least 21 states have an average monthly farm household income between Rs 10,000 and Rs 20,000, while only four states have an average monthly farm household income below Rs 10,000.

While Jharkhand (from Rs 6,991 to Rs 9,787); Tripura (from Rs 7,592 to Rs 9,643); Odisha (from Rs 7,731 to Rs 9,290); and Bihar (from Rs 7,175 to Rs 9,252) reported an increase in farm household income, remain below the Rs 10,000 mark. Bihar is the lowest-income state in 2021-22, a position held by Uttar Pradesh in 2016-17.

According to the report, a marked variation among states was observed in the average monthly household income of agricultural households.

Farm households in states like Punjab, Haryana and Kerala reported maximum income levels, indicating that this sector makes a considerable contribution to the state’s economy.

“On the other hand, farm households in states like Bihar (Rs 9,252), Odisha (Rs 9,290), Jharkhand (Rs 9,787) and Tripura (Rs 9,643) reported a low average monthly income of less than Rs 10,000 per household, indicating the need. for promoting improved and more remunerative agricultural practices in these states,” NAFIS said.

It is also important to note that with Rs 6,668 as the average monthly income of agricultural households in 2016-17, Uttar Pradesh was at the lowest level among all states. Recording an improvement of over 63%, the state now has an average monthly income of Rs 10,847 of agricultural households. Although it was last in 2016-17, it managed to climb the ladder by four places.

In its 2016-17 report, Nabard said farm households in states like Jharkhand (Rs 6,991), Andhra Pradesh (Rs 6,920) and Uttar Pradesh (Rs 6,668) reported very low average monthly incomes of less than Rs 7,000 per household . the bleak scenario of agriculture in these states”. Andhra Pradesh has also seen over 78% growth in revenue in 2021-22.

Financial inclusion is important for empowering individuals by providing access to formal financial services and enabling their active participation in the economy.

Increased financial inclusion catalyzes higher levels of savings, investment and entrepreneurship, contributing significantly to economic growth and stability both locally and nationally.