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Focus more on non-farm businesses of farmers to boost income: Survey.
Feb 01, 2022
As 2022 was the target year for doubling farmers’ income, the Economic Survey has said that while there was 22.6 per cent increase in net income from crop production, the growth in net receipts from other sources surged by 92.6 per cent between 2014 and 2019. If the suggestion of the Survey to focus more on non-farm businesses is an indication, the animal husbandry, dairy and fisheries sectors can expect a substantial increase in allocation of funds in the FY2022-23 Budget as it may also help maintain agriculture growth around 4 per cent.
The agriculture and the allied sector has proved resilient to the Covid-19 shock as it is seen to grow at 3.9 per cent in 2021-22 as against 3.6 per cent in 2020-21.
Income from crop production
The share of income from crop production in the total income of farmers has declined to 37 per cent in 2019 from 48 per cent in 2014 is in line with the government’s policy for diversification in the sources of income. On the other hand, the share of wage/salary in the total income has gone up to 40 per cent from 32 per cent.
According to the Situation Assessment Survey (SAS) of National Statistical Office’s (NSO), released last year, the average monthly income of an agricultural household has gone up to Rs10,218 from Rs6,426, up by 59 per cent.
The allocation for the Ministry of Fisheries, Animal Husbandry and Dairying was increased by 23 per cent to Rs4,820.82 crore during 2021-22 (BE) from Rs3,918.31 crore 2020-21 (RE). Many experts have pointed out that there is need to sustain such a hike in allocation for next few years as growth in both the livestock and dairy sector was subdued in 2019-20 compared to previous three years.
'Without much increase in crop productivity, growth in farmers income is unlikely to see any significant increase. There is need for scientific breakthrough as seen in case of sugarcane with CO238 variety and in Basmati with Pusa 1121/1509,' said former Union Agriculture Secretary Siraj Hussain.
Research and development and its application in agriculture and allied sectors can play a major role in realisation of sustainable agriculture practice that efficiently meets the objectives of nutritional security and improvement in farm income, the Survey said.
Stressing on the importance of agriculture research amid dwindling land holding, it further said: 'Increasing number of small farmers and increasing importance of livestock sector requires increased focus on the measures like development of small farm technology, boosting non-farm businesses and development of allied activities including animal husbandry, dairying and fisheries.'
The average size of household ownership holdings has declined from 0.725 hectare in 2003 to 0.512 hectare in 2019. There is a need to improve productivity of small and marginal farmers through customised technology for them, it said.
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