How farmers turned labourers

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How the average Indian farmers slowly changed into being primarily a labourer

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 How farmers turned labourers

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  • The story: Farmers in India are often seen working others' fields also, to earn extra income. They may take up other kind of jobs (non agri) also, as labourers (e.g. in construction or mining). So a farm household's income is made up of farming income and non-farming income.
  • Latest analysis: Details research by Business Standard showed that an average farming household in India earned Rs 10,218 per month in 2018-2019, up from Rs 6,426 a month in 2012-2013. This represents a nominal income growth of about 60 per cent over six years.
  1. After adjusting for inflation using the rural consumer price index (CPI), farmers’ incomes have grown only 21 per cent in real terms in the period (India’s real GDP (real size of the economy) grew 52 per cent in the same period)
  2. The growth in income was such that it has made the average Indian farmer more of a labourer, as he now earns more from wages than from cultivation, and this has happened for the first time ever!
  3. In 2012-2013, an average Indian farmer earned Rs 3,081 per month from cultivation. This grew to just Rs 3,798 in 2018-2019. Income from wages, on the other hand, doubled from Rs 2,071 to Rs 4,063 in six years. So farmers have turned labourers! (all figures net incomes)
  • Taking a back seat: Farming has surely taken a backseat in rural India at the aggregate level. While the number of farming households increased from 90 million to 93 million in six years, the number of families not engaged in farming rose from 66 million to nearly 80 million in the same period (2013-2019).
  1. The report was titled "Situation Assessment of Agricultural Households and Land and Holdings of Households in Rural India", by the Ministry of Statistics and Programme Implementation. The report defines a household as an agricultural household if it earns more than Rs 4,000 per year from agricultural activities.
  2. The income and expenditure of farmer households captured in this report by the National Sample Survey Office is one of the most credible nationwide official government data on farmers’ incomes in India.
  • Debt situation: The latest report estimates imputed expenses of farm households, apart from pay-out expenses, which the previous reports of the series had not done. Adjusting for the imputed expenses, the net income from cultivation further drops to Rs 3,058 per month in 2018-2019. An average farm household in India owed Rs 74,121 worth of debt in 2018-2019, compared to Rs 47,000 in 2012-2013. Thus, as income grew 60 per cent over six years, average debt, too, rose with a similar degree, by 57 per cent.
  1. Indebtedness, or the share of farming households indebted, has remained steady. While it was 51.9 per cent in 2012-2013, the proportion marginally reduced to 50.2 per cent in 2018-2019.
  2. Apart from income and debt, physical characteristics of Indian farming have also changed, and in some cases, the long term trend has continued.
  • Land parcels reducing: Disintegration of land parcels has continued unabated for two decades, and more worryingly, landlessness has increased. The average land held by a land owning farmer household has shrunk from 0.806 hectare in 2003 to 0.558 hectare in 2019. While the share of landless families among farming households had declined from 10 per cent in 2003 to 7.4 per cent in 2013, it has increased again over the period from 2013 to 2019, to 8.2 per cent.
  • EXAM QUESTIONS: (1) Explain the dynamic by which a farm household is now changing into being a labour household. (as per latest MoSPI situation report) (2) What are the top four challenges of farmers in India, today? List and explain.
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#Farming #Labour #MOSPI #Distress


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PT's IAS Academy: How farmers turned labourers
How farmers turned labourers
How the average Indian farmers slowly changed into being primarily a labourer
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