Income and Source of Income of Agricultural Households in India for Various Size Classes of Land Possessed

Income and Source of Income of Agricultural Households in India for Various Size Classes of Land Possessed

A recent report of National Sample Survey on ‘Some Characteristics of Agricultural Households in India’ is based on the Situation Assessment Survey (SAS) of Agricultural Households conducted during January 2013 to December 2013 for the reference period: July 2012 – June 2013 (agriculture year). This survey was conducted in the rural areas of the country in two spells. It was spread over 4529 villages and covered 35200 households. As obtained from the above-mentioned survey, some of the key findings at the all-India level in respect of income and source of income of agricultural households in India for the various size classes of land possessed are as below:

1.    As per the estimates, there are only 2.39 million agricultural households in India having land possessed less than 0.01 hectare during July 2012-June 2013.  The total average monthly income of such agricultural households is Rs. 4561/- only from all sources.  Out of which Rs 2902/- is from wages/salary and Rs. 1181/- is the net receipt from farming of animals.  Rest is from the net receipt from cultivation (Rs. 30/-) and net receipt from non-farm business (Rs. 447/-).  Their total average monthly consumption is Rs. 5108/- (more than the average monthly income) and their net investment in productive assets is Rs. 55/-. There are only 38.3% households who are having MGNREG job cards.

2.    As per the estimates, there are 28.77 million agricultural households in India having land possessed between 0.01 hectare and 0.4 Hectare during July 2012-June 2013.  The total average monthly income of such agricultural households is Rs. 4152/- from all sources. Out of which Rs 2386/- is from wages/salary and Rs. 621/- is the net receipt from farming of animals.  Rest is from the net receipt from cultivation (Rs. 687/-) and net receipt from non-farm business (Rs. 459/-).  Their total average monthly consumption is Rs. 5401/- (more than the average monthly income) and their net investment in productive assets is Rs. 251/-. There are over 45% households who are having MGNREG job cards.

3.    As per the estimates, there are 31.48 million agricultural households in India having land possessed between 0.41 hectare and 1 Hectares during July 2012-June 2013.  The total average monthly income of such agricultural households is Rs. 5247/- from all sources.  Out of which Rs 2145/- is the net receipt from cultivation and Rs. 629/- is the net receipt from farming of animals.  Rest is from wages/salary (Rs. 2011/-) and net receipt from non-farm business (Rs. 462/-). Their total average monthly consumption is Rs. 6020/- (more than the average monthly income) and their net investment in productive assets is Rs. 540/-. There are over 46% households who are having MGNREG job cards. 

4.    As per the estimates, there are 15.46 million agricultural households in India having land possessed between 1 hectare and 2 Hectares during July 2012-June 2013.  The total average monthly income of such agricultural households is Rs. 7348/- from all sources.  Out of which Rs 4209/- is the net receipt from cultivation and Rs. 818/-  is the net receipt from farming of animals.  Rest is from wages/salary (Rs. 1728/-) and net receipt from non-farm business (Rs. 593/-). Their total average monthly consumption is Rs. 6457/- and their net investment in productive assets is Rs. 422/-.  There are about 44% households who are having MGNREG job cards.

5.    As per the estimates, there are 8.43 million agricultural households in India having land possessed between 2 hectares and 4 Hectares during July 2012-June 2013.  The total average monthly income of such agricultural households is Rs. 10730/- from all sources.  Out of which Rs 7359/- is the net receipt from cultivation and Rs. 1161/-  is the net receipt from farming of animals.  Rest is from wages/salary (Rs. 1657/-) and net receipt from non-farm business (Rs. 554/-). Their total average monthly consumption is Rs. 7786/- and their net investment in productive assets is Rs. 746/-. There are over 41% households who are having MGNREG job cards.

6.    As per the estimates, there are 3.3 million agricultural households in India having land possessed between 4 hectares and 10 Hectares during July 2012-June 2013.  The total average monthly income of such agricultural households is Rs. 19637/- from all sources.  Out of which Rs 15243/- is the net receipt from cultivation and Rs. 1501/- is the net receipt from farming of animals.  Rest is from wages/salary (Rs. 2031/-) and net receipt from non-farm business (Rs. 861/-). Their total average monthly consumption is Rs. 14447/- and their net investment in productive assets is Rs. 6987/-.  There are over 36% households who are having MGNREG job cards. 

7.    As per the estimates, there are only 0.37 million agricultural households in India having land possessed 10.00+ Hectares during July 2012-June 2013.  The total average monthly income of such agricultural households is Rs. 41388/- from all sources.  Out of which Rs 35685/- is the net receipt from cultivation and Rs. 2622/- is the net receipt from farming of animals.  Rest is from wages/salary (Rs. 1311/-) and net receipt from non-farm business (Rs. 1770). Their total average monthly consumption is Rs. 14447/- and their net investment in productive assets is Rs. 6987/-. Inspite of the highest bracket of agricultural household, there are about one-third households who are having MGNREG job cards as well.

8.    Total average monthly consumption expenditure exceeds the corresponding total income in case of agricultural households with less than 1 hectare of land possessed. 

9.    With the increase in size of the land possessed, obviously net receipts from cultivation uniformly increase. Also with the increase in size of the land possessed, the net receipts from farming of animals as well as from non-form business increases. But the dependence on wages/ salary is getting less pronounced with increase in size of the land possessed.  It is noticed that even agricultural households with 10+ hectares land, some members of such households do earn through wages/salary.

10. The highest class of ten plus hectares land holding households earn on the average about five lakh in a agriculture year.