Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 150
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 151
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 97
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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        LATEST NEWS UPDATES | Rural income: looking beyond agriculture -Sanjay Kaul    </title>
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China&rsquo;s example shows the benefits of the rural workforce shifting from the farm to the non-farm sector

The government announced its ambitious dream of doubling farmers&rsquo; income by 2022-23 in 2015-16. Incomes would have to grow annually by 10.4% to double..."/>
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China&rsquo;s example shows the benefits of the rural workforce shifting from the farm to the non-farm sector

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                            <div align="justify">-Livemint.com<br /><br /><em>China&rsquo;s example shows the benefits of the rural workforce shifting from the farm to the non-farm sector<br /></em><br />The government announced its ambitious dream of doubling farmers&rsquo; income by 2022-23 in 2015-16. Incomes would have to grow annually by 10.4% to double in seven years.<br /><br />The data on growth rates of farm income given by NITI Aayog in its policy paper on doubling farmers&rsquo; income shows that the real income of farmers has grown at a rate of 3.4% between 1993 and 2016. Further, if we use the gross value added (GVA) by agriculture as a proxy for farm incomes, we see that the GVA of agriculture at constant prices has historically grown, on an average, at a rate of 3% per annum. Following this trend, the real GVA took as many as 25 years (in the period 1990-2016) to double!<br /><br />Recent efforts to improve farmers&rsquo; income have been focused on raising minimum support prices (MSPs). Historical evidence shows that MSP does not directly translate into higher incomes for farmers due to a deficient ground-implementation framework. Additionally, high MSPs result in market distortions and render Indian exports uncompetitive in world markets.<br /><br />Thus, it does not appear realistic to double the real income of a rural household from agriculture alone. Incomes of rural households need to be augmented from non-farm income sources.<br /><br />Notwithstanding challenges, the industry and service sectors have shown more consistent real growth in the last five years and a shift of workforce is required from the farm to the non-farm sector. Open unemployment is already high. The problem of disguised unemployment and under-employment, fuelled by fragmentation of landholdings, has long plagued the Indian agricultural sector. More than 45% of the workforce is engaged in a sector which contributes less than 17% to the country&rsquo;s gross domestic product. This share is poised to further decline; agriculture cannot sustain households dependent on it for long. The sooner we recognize this, the faster we will be able to evaluate policy alternatives.<br /><br />For instance, China, whose farm sector was similar to that of India in the 1960s, now employs only 27.7% of its workforce in agriculture. It has left India far behind in value of agriculture production and rural household incomes. This is because first, it produces much more from each hectare than India does, and second, it rigorously developed non-farm income sources.<br /><br />Through major reforms in the 1970s, China boosted its agricultural productivity and at the same time, established urban labour markets by developing non-state enterprises, making it possible for rural migrants to seek jobs in towns and cities. Additionally, non-farm activities were rapidly developed in rural China, which absorbed a large quantity of surplus agricultural labour. This form of labour mobility was christened &ldquo;leave the land, but not the village&rdquo;.<br /><br />Labour-intensive &ldquo;township and village enterprises&rdquo; (TVEs) were established in rural areas and saw keen participation from the private sector due to low-wage labour. TVEs became engines of growth for Chinese rural non-farm sector.<br /><br />As a result, China&rsquo;s rural non-farm sector has emerged as a major source of the high rates of economic growth in the recent past. Rural poverty levels are as low as 2.5% now in China while in India, they remain as high as 40% in some states. <br /><br />Please <a href="https://www.livemint.com/Opinion/HziUVKc2XnZxidRD3rjqVL/Rural-income-looking-beyond-agriculture.html" title="https://www.livemint.com/Opinion/HziUVKc2XnZxidRD3rjqVL/Rural-income-looking-beyond-agriculture.html">click here</a> to read more. <br /></div>                                                           
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    <br><a href="https://www.livemint.com/Opinion/HziUVKc2XnZxidRD3rjqVL/Rural-income-looking-beyond-agriculture.html" class="re" target="_blank">Livemint.com, 7 May, 2018, https://www.livemint.com/Opinion/HziUVKc2XnZxidRD3rjqVL/Rural-income-looking-beyond-agriculture.html</a><div class="clear"></div>
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China&rsquo;s example shows the benefits of the rural workforce shifting from the farm to the non-farm sector

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    <h1 class="cat-box-title">Rural income: looking beyond agriculture -Sanjay Kaul</h1>
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                            <div align="justify">-Livemint.com<br /><br /><em>China&rsquo;s example shows the benefits of the rural workforce shifting from the farm to the non-farm sector<br /></em><br />The government announced its ambitious dream of doubling farmers&rsquo; income by 2022-23 in 2015-16. Incomes would have to grow annually by 10.4% to double in seven years.<br /><br />The data on growth rates of farm income given by NITI Aayog in its policy paper on doubling farmers&rsquo; income shows that the real income of farmers has grown at a rate of 3.4% between 1993 and 2016. Further, if we use the gross value added (GVA) by agriculture as a proxy for farm incomes, we see that the GVA of agriculture at constant prices has historically grown, on an average, at a rate of 3% per annum. Following this trend, the real GVA took as many as 25 years (in the period 1990-2016) to double!<br /><br />Recent efforts to improve farmers&rsquo; income have been focused on raising minimum support prices (MSPs). Historical evidence shows that MSP does not directly translate into higher incomes for farmers due to a deficient ground-implementation framework. Additionally, high MSPs result in market distortions and render Indian exports uncompetitive in world markets.<br /><br />Thus, it does not appear realistic to double the real income of a rural household from agriculture alone. Incomes of rural households need to be augmented from non-farm income sources.<br /><br />Notwithstanding challenges, the industry and service sectors have shown more consistent real growth in the last five years and a shift of workforce is required from the farm to the non-farm sector. Open unemployment is already high. The problem of disguised unemployment and under-employment, fuelled by fragmentation of landholdings, has long plagued the Indian agricultural sector. More than 45% of the workforce is engaged in a sector which contributes less than 17% to the country&rsquo;s gross domestic product. This share is poised to further decline; agriculture cannot sustain households dependent on it for long. The sooner we recognize this, the faster we will be able to evaluate policy alternatives.<br /><br />For instance, China, whose farm sector was similar to that of India in the 1960s, now employs only 27.7% of its workforce in agriculture. It has left India far behind in value of agriculture production and rural household incomes. This is because first, it produces much more from each hectare than India does, and second, it rigorously developed non-farm income sources.<br /><br />Through major reforms in the 1970s, China boosted its agricultural productivity and at the same time, established urban labour markets by developing non-state enterprises, making it possible for rural migrants to seek jobs in towns and cities. Additionally, non-farm activities were rapidly developed in rural China, which absorbed a large quantity of surplus agricultural labour. This form of labour mobility was christened &ldquo;leave the land, but not the village&rdquo;.<br /><br />Labour-intensive &ldquo;township and village enterprises&rdquo; (TVEs) were established in rural areas and saw keen participation from the private sector due to low-wage labour. TVEs became engines of growth for Chinese rural non-farm sector.<br /><br />As a result, China&rsquo;s rural non-farm sector has emerged as a major source of the high rates of economic growth in the recent past. Rural poverty levels are as low as 2.5% now in China while in India, they remain as high as 40% in some states. <br /><br />Please <a href="https://www.livemint.com/Opinion/HziUVKc2XnZxidRD3rjqVL/Rural-income-looking-beyond-agriculture.html" title="https://www.livemint.com/Opinion/HziUVKc2XnZxidRD3rjqVL/Rural-income-looking-beyond-agriculture.html">click here</a> to read more. <br /></div>                                                           
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    <br><a href="https://www.livemint.com/Opinion/HziUVKc2XnZxidRD3rjqVL/Rural-income-looking-beyond-agriculture.html" class="re" target="_blank">Livemint.com, 7 May, 2018, https://www.livemint.com/Opinion/HziUVKc2XnZxidRD3rjqVL/Rural-income-looking-beyond-agriculture.html</a><div class="clear"></div>
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China&rsquo;s example shows the benefits of the rural workforce shifting from the farm to the non-farm sector

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China&rsquo;s example shows the benefits of the rural workforce shifting from the farm to the non-farm sector

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                            <div align="justify">-Livemint.com<br /><br /><em>China&rsquo;s example shows the benefits of the rural workforce shifting from the farm to the non-farm sector<br /></em><br />The government announced its ambitious dream of doubling farmers&rsquo; income by 2022-23 in 2015-16. Incomes would have to grow annually by 10.4% to double in seven years.<br /><br />The data on growth rates of farm income given by NITI Aayog in its policy paper on doubling farmers&rsquo; income shows that the real income of farmers has grown at a rate of 3.4% between 1993 and 2016. Further, if we use the gross value added (GVA) by agriculture as a proxy for farm incomes, we see that the GVA of agriculture at constant prices has historically grown, on an average, at a rate of 3% per annum. Following this trend, the real GVA took as many as 25 years (in the period 1990-2016) to double!<br /><br />Recent efforts to improve farmers&rsquo; income have been focused on raising minimum support prices (MSPs). Historical evidence shows that MSP does not directly translate into higher incomes for farmers due to a deficient ground-implementation framework. Additionally, high MSPs result in market distortions and render Indian exports uncompetitive in world markets.<br /><br />Thus, it does not appear realistic to double the real income of a rural household from agriculture alone. Incomes of rural households need to be augmented from non-farm income sources.<br /><br />Notwithstanding challenges, the industry and service sectors have shown more consistent real growth in the last five years and a shift of workforce is required from the farm to the non-farm sector. Open unemployment is already high. The problem of disguised unemployment and under-employment, fuelled by fragmentation of landholdings, has long plagued the Indian agricultural sector. More than 45% of the workforce is engaged in a sector which contributes less than 17% to the country&rsquo;s gross domestic product. This share is poised to further decline; agriculture cannot sustain households dependent on it for long. The sooner we recognize this, the faster we will be able to evaluate policy alternatives.<br /><br />For instance, China, whose farm sector was similar to that of India in the 1960s, now employs only 27.7% of its workforce in agriculture. It has left India far behind in value of agriculture production and rural household incomes. This is because first, it produces much more from each hectare than India does, and second, it rigorously developed non-farm income sources.<br /><br />Through major reforms in the 1970s, China boosted its agricultural productivity and at the same time, established urban labour markets by developing non-state enterprises, making it possible for rural migrants to seek jobs in towns and cities. Additionally, non-farm activities were rapidly developed in rural China, which absorbed a large quantity of surplus agricultural labour. This form of labour mobility was christened &ldquo;leave the land, but not the village&rdquo;.<br /><br />Labour-intensive &ldquo;township and village enterprises&rdquo; (TVEs) were established in rural areas and saw keen participation from the private sector due to low-wage labour. TVEs became engines of growth for Chinese rural non-farm sector.<br /><br />As a result, China&rsquo;s rural non-farm sector has emerged as a major source of the high rates of economic growth in the recent past. Rural poverty levels are as low as 2.5% now in China while in India, they remain as high as 40% in some states. <br /><br />Please <a href="https://www.livemint.com/Opinion/HziUVKc2XnZxidRD3rjqVL/Rural-income-looking-beyond-agriculture.html" title="https://www.livemint.com/Opinion/HziUVKc2XnZxidRD3rjqVL/Rural-income-looking-beyond-agriculture.html">click here</a> to read more. <br /></div>                                                           
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    <br><a href="https://www.livemint.com/Opinion/HziUVKc2XnZxidRD3rjqVL/Rural-income-looking-beyond-agriculture.html" class="re" target="_blank">Livemint.com, 7 May, 2018, https://www.livemint.com/Opinion/HziUVKc2XnZxidRD3rjqVL/Rural-income-looking-beyond-agriculture.html</a><div class="clear"></div>
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Rural income: looking beyond agriculture -Sanjay Kaul

Published on May 12, 2018   Modified on May 12, 2018

-Livemint.com China’s example shows the benefits of the rural workforce shifting from the farm to the non-farm sector The government announced its ambitious dream of doubling farmers’ income by 2022-23 in 2015-16. Incomes would have to grow annually by 10.4% to double in seven years. The data on growth rates of farm income given by NITI Aayog in its policy paper on doubling farmers’ income shows that the real income of farmers has grown at a rate of 3.4% between 1993 and 2016. Further, if we use the gross value added (GVA) by agriculture as a proxy for farm incomes, we see that the GVA of agriculture at constant prices has historically grown, on an average, at a rate of 3% per annum. Following this trend, the real GVA took as many as 25 years (in the period 1990-2016) to double! Recent efforts to improve farmers’ income have been focused on raising minimum support prices (MSPs). Historical evidence shows that MSP does not directly translate into higher incomes for farmers due to a deficient ground-implementation framework. Additionally, high MSPs result in market distortions and render Indian exports uncompetitive in world markets. Thus, it does not appear realistic to double the real income of a rural household from agriculture alone. Incomes of rural households need to be augmented from non-farm income sources. Notwithstanding challenges, the industry and service sectors have shown more consistent real growth in the last five years and a shift of workforce is required from the farm to the non-farm sector. Open unemployment is already high. The problem of disguised unemployment and under-employment, fuelled by fragmentation of landholdings, has long plagued the Indian agricultural sector. More than 45% of the workforce is engaged in a sector which contributes less than 17% to the country’s gross domestic product. This share is poised to further decline; agriculture cannot sustain households dependent on it for long. The sooner we recognize this, the faster we will be able to evaluate policy alternatives. For instance, China, whose farm sector was similar to that of India in the 1960s, now employs only 27.7% of its workforce in agriculture. It has left India far behind in value of agriculture production and rural household incomes. This is because first, it produces much more from each hectare than India does, and second, it rigorously developed non-farm income sources. Through major reforms in the 1970s, China boosted its agricultural productivity and at the same time, established urban labour markets by developing non-state enterprises, making it possible for rural migrants to seek jobs in towns and cities. Additionally, non-farm activities were rapidly developed in rural China, which absorbed a large quantity of surplus agricultural labour. This form of labour mobility was christened “leave the land, but not the village”. Labour-intensive “township and village enterprises” (TVEs) were established in rural areas and saw keen participation from the private sector due to low-wage labour. TVEs became engines of growth for Chinese rural non-farm sector. As a result, China’s rural non-farm sector has emerged as a major source of the high rates of economic growth in the recent past. Rural poverty levels are as low as 2.5% now in China while in India, they remain as high as 40% in some states. Please click here to read more.

Livemint.com, 7 May, 2018, https://www.livemint.com/Opinion/HziUVKc2XnZxidRD3rjqVL/Rural-income-looking-beyond-agriculture.html

Tagged with: Fragmentation of Land Gross Value Added (GVA) by Agriculture Non-farm Workers Non-farm employment Disguised Unemployment Under-employment

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