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Resource centre on India's rural distress
 
 

Estimates and Analysis of Farm Income in India, 1983-84 to 2011-12 -Ramesh Chand, Raka Saxena, and Simmi Rana

-Economic and Political Weekly

This paper presents estimates of farmers' incomes from agriculture over the past three decades. The income earned by farmers from agricultural activities after paying for input costs and the wages for hired labour has seen low to high growth in different periods during the last three decades. In none of the periods do farmers' income or profitability of farming show any squeeze. The pace of growth in farmers' income that began around 2004-05, which reduced the disparity in growth in incomes of farmers and non-farmers, could not be sustained after 2011-12. It looks like the growth in farm income after 2011-12 has plummeted to around 1%, and this is an important reason for the sudden rise in agrarian distress in recent years.

Ramesh Chand (rc@ncap.res.in), Raka Saxena and Simmi Rana are with the National Institute of Agricultural Economics and Policy Research, New Delhi.

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