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Resource centre on India's rural distress
 
 

Have Punjab’s rich farmers created their own nemesis? -Roshan Kishore

-Livemint.com

Aided by distorted procurement, Punjab’s rich farmers are undertaking high, but damaging, investment

Small farmers and fragmented land holdings are often cited as the main problem affecting India’s agricultural growth. After all, lower incomes will limit the ability of such farmers to make significant investments and also make them and more vulnerable to price or weather related shocks. Punjab – the poster boy of India’s green revolution – which has larger than average farm size and relatively well-off farmers than can be found in the rest of the country is often cited as a benchmark to prove this point. A deeper analysis raises questions on this line of thought.

First, the bright side of the story. A report released by the National Sample Survey Organisation (NSSO) on 31 May shows that Punjab’s farmers are the most well off in comparison to their peers in rest of the country. The report which is based on a survey conducted during 2012-13, gives estimates of monthly incomes for agricultural households. Agricultural households are defined as those that received at least Rs.3,000 of produce from farm activities in the preceding year. These figures when divided by average household size for states give a per-person estimate of agricultural incomes.

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