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LATEST NEWS UPDATES | Why India is unlikely to double farmers' income by the end of this fiscal -Sanjeeb Mukherjee

Why India is unlikely to double farmers' income by the end of this fiscal -Sanjeeb Mukherjee

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published Published on Apr 25, 2022   modified Modified on May 12, 2022

-Business Standard

The current growth in the Indian cultivator's real or inflation-adjusted income, at about 3.5 per cent, is barely a third of the growth rate required to achieve this goal

Earlier this month, the Central government said in a reply in Parliament that it has taken several measures to double farmers’ income by 2022 and that the progress made so far indicates that it is ‘on the right track’.

However, a closer look at the data and at the assumptions made thereof shows that as of now, it appears that the country seems quite unlikely to achieve that goal in real terms by FY23 end.

The Dalwai Committee

The Ashok Dalwai Committee on Doubling Farmers’ Income, set up by the Central government, had categorically said in its 14-volume report that in order for the cultivator's income from both farm and non-farm sources to double by 2022-23 (the terminal year), his earnings would have to grow by 10.4 per cent a year starting 2015-16. Moreover, this growth would have to be in real or inflation-adjusted terms, not in nominal terms.

“It is the real income of farmers that is to be doubled and not their nominal income,” the Committee had said.

It had pegged the average annual income of an agricultural household in 2015-16 at Rs 96,703. This was projected to grow to Rs 1,72,694 by 2022-23, that is, by the end of the current financial year.

At current prices, the growth would have to be stepped up further to a rate of as much as 15.9 per cent.

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Business Standard, 25 April, 2022, https://webcache.googleusercontent.com/search?q=cache:https://www.business-standard.com/article/economy-policy/why-india-is-unlikely-to-double-farmers-income-by-the-end-of-this-fiscal-122042000503_1.html


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