It gives an outlook to the position of Indian farmers and indian agriculture . It provides an idea about the measures that can be adopted in order to double thefarmers' income by 2022.

1. DOUBLING
FARMERS’ INCOME
BY 2022.
DEPARTMENT OF
AGRICULTURAL ECONOMICS
BANARAS HINDU UNIVERSITY
SUPERVISOR PRESENTED BY
Dr.H.P.SINGH ANWESHA DEY
16AEC03

2. INTRODUCTION
 The vision of doubling farmers’ income by 2022 by
Honourable Prime Minister Narendra Modi was announced by
the Honourable Finance Minister Shri Arun Jaitley during his
budget speech on February 29,2016
 After the Green Revolution, India’s food production multiplied
by 3.7 times while the population multiplied by 2.55 times.
 The food production has increased from 51 m tonnes in
1950-51 to 273 m tonnes in 2016-17.
 The net result has been a 45% increase in per person food
production , which has made India food self sufficient at
aggregate level and also a net food exporting country.

3. AGRICULTURAL HOUSEHOLD IN INDIA
According to Situation Assessment Survey 2013, an
agricultural household is defined as a household
receiving some value of produce more than Rs.3000
from agricultural activities and having at least one
member self -employed in agriculture either in the
principal status or in subsidiary status during last 365
days.
NSSO data on Consumption Expenditure Survey for
year 2011-12 reveals that one-fifth of the agricultural
households were having income below the poverty
line.

4. 45.3
32.1
28.4
26.5
23.2 22.5 22.5 22.5
18.9 17.5
14 13.6 12.3 12.3 11.8 10.7
9
4.3 3.2
0.5
0
5
10
15
20
25
30
35
40
45
50
Source: Estimated from unit level Consumption Expenditure Survey data 2011-12, NSSO
Figure 1. Farm Households with Income below Poverty Line( per cent) , 2011-12

5. SUBSTANTIVE POINTS
What is to be doubled , is it output , value added or income earned by
farmers from agricultural activities?
Whether nominal income is to be doubled or real income is to be doubled?
Whether the targeted income includes only income derived from agricultural
activities or would it also include income of farmers from other sources ?

6. TRENDS IN FARMERS’ INCOME- ALL INDIA
Size of land holdings
(hectares)
Total annual
income (Rs) per
agri holding
2002-03
Total annual
income(Rs) per
agri holding
2012-13
CAGR
(per cent)
Real CAGR
(per cent)
Doubling time
@ nominal
growth
Doubling time
@ real growth
1. Landless < 0.01 16560 54732 12.70 6.19 5.80 11.54
2. Lower Marginal
(0.01-0.40 )
19596 49824 9.78 3.27 7.43 21.54
3. Upper Marginal
(0.41-1.00)
21708 62964 11.24 4.73 6.51 15.01
4. Small (1.01-2.00) 29916 88176 11.42 4.91 6.41 14.47
5 .Semi-Medium
(2.01-4.00)
43068 128760 11.57 5.06 6.33 14.03
6. Medium (4.01-10.00) 68172 235644 13.20 6.69 5.59 10.70
7. Large (>10.00) 116004 496656 15.65 9.14 4.77 7.92
ALL SIZES 25380 77112 11.75 5.24 6.24 13.56
SOURCES: Computed from NSSO (2005 and 2014). SITUATION ASSESSMENT SURVEY , Report No. 497(59/33/5).
TABLE 1. INCOME OF FARMERS AND GROWTH FROM 2002-03 TO 2012-13

7. Diversification Of Income Sources Of Farmers
Size class of land possessed
(ha)
Wages/
Salary
Cultivation Livestock Non –farm
business
Total Index of
diversification
1. Landless < 0.01 64 1 26 10 100 0.52
2. Lower Marginal
(0.01-0.40)
57 17 15 11 100 0.61
3. Upper Marginal
(0.41-1.00)
38 41 12 9 100 0.66
4.Small (1.01-2.00) 24 57 11 8 100 0.60
5.Semi- Medium(2.01-4.00) 15 69 11 5 100 0.49
6. Medium (4.01-10.00) 10 78 8 4 100 0.38
7. Large (>10.00) 3 86 6 4 100 0.25
ALL SIZES 32 48 12 8 100 0.65
Shares of income from different sources
TABLE 2a. INCOME OF FARMERS FROM DIFFERENT SOURCES IN THE YEAR 2012-13
SOURCE: Computed from NSSO (2005 and 2015)

8. Size class of land possessed
(ha)
Wages/
Salary
Cultivation Livestock Non-farm
business
Total Index of
diversification
1. Landless <0.01 78 1 5 17 100 0.36
2. Lower Marginal
(0.01-0.40)
60 18 6 17 100 0.58
3. Upper Marginal
(0.41-1.00)
40 43 6 11 100 0.64
4. Small (1.01-2.00) 25 63 4 7 100 0.53
5. Semi- Medium(2.01-4.00) 18 75 2 6 100 0.41
6. Medium (4.01-10.00) 9 82 0 9 100 0.31
7.Large (>10.00) 6 86 1 7 100 0.25
ALL SIZES 39 46 4 11 100 0.63
Shares of income from different sources
SOURCE: Computed from NSSO (2005 and 2015). Situation Assessment Survey
TABLE 2b. INCOME OF FARMERS FROM DIFFERENT SOURCES IN THE YEAR 2002-03

9. SOURCES OF INCOME
39
46
4
11
2002-03
WAGE CULTIVATION
LIVESTOCK NON-FARM BUSINESS
32
48
12
8
2012-13
WAGE CULTIVATION
LIVESTOCK NON-FARM BUSINESS
SOURCE: Computed from NSSO (2005 and 2015)
AT INDIA LEVEL

10. Shares Of Different Sources Of Income- State Wise
0
20
40
60
80
100
120
WAGE CULTIVATION
LIVESTOCK NON-FARM BUSINESS
0
20
40
60
80
100
120
WAGE CULTIVATION
LIVESTOCK NON-FARM BUSINESS

11. GROWTH IN INCOME – STATE LEVEL.
TABLE 3. Level of income of farm holdings (Rs) doubling time (years)
State 2002-03 2012-13 2002-03 2012-13 Nominal Real Nominal Real
Andhra Pradesh 19608 73392 0.626 0.637 14.11 7.19 5.25 9.99
Assam 37932 80340 0.575 0.543 7.79 0.88 9.24 79.34
Bihar 21720 42684 0.672 0.619 6.99 -0.33 10.26 -
Chhattisgarh 19416 62124 0.553 0.455 12.33 4.8 5.96 14.79
Gujarat 32208 95112 0.662 0.687 11.44 5.61 6.4 12.69
Haryana 34584 173208 0.516 0.610 17.48 2.24 4.3 31.28
Jammu & Kashmir 65856 152196 0.646 0.589 8.74 2.65 8.27 26.48
Total annual income
(Rs)
Index of
diversification
CAGR
( per cent)
Doubling time in
years@ given CAGR

12. State 2002-03 2012-13 2002-03 2012-13 Nominal Real Nominal Real
Jharkhand 24828 56652 0.619 0.687 8.6 2.94 8.4 23.93
Karnataka 31392 105984 0.598 0.587 12.94 5.71 5.7 12.48
Kerala 48048 142668 0.635 0.669 11.5 5.95 6.37 12
Madhya Pradesh 17160 74508 0.331 0.521 15.82 9.81 4.72 7.4
Maharashtra 29556 88620 0.618 0.624 11.61 5.66 6.31 12.58
Orissa 12744 59712 0.592 0.720 16.7 9.17 4.49 7.9
Punjab 59520 216708 0.579 0.558 13.79 6.66 5.36 10.75
Rajasthan 17976 88188 0.538 0.672 17.24 9.39 4.36 7.72
Tamil Nadu 24864 83760 0.602 0.704 12.91 6.68 5.71 10.72
Uttar Pradesh 19596 58944 0.607 0.593 11.64 4.72 6.3 15.02
West Bengal 24948 47760 0.658 0.624 6.71 -0.22 10.67 -
Total annual
income (Rs)
Index of
diversification
CAGR
(per cent)
Doubling time in
years @ given CAGR
ALL INDIA 25380 77112 0.626 0.646 11.76 5.2 6.24 13.56
SOURCE: Computed from NSSO(2005 and 2015) . SITUATION ASSESSMENT SURVEY.

13. SOURCES OF GROWTH IN FARMERS’INCOME
The major sources of growth operating within agriculture sector are:-
 Improvement in Agricultural productivity
 Resource use efficiency or Total Factor Productivity
 Increase in cropping intensity
 Diversification towards high value crops
The major sources of growth outside agriculture
include:-
 Shifting cultivators from farm to non-farm occupations
 Improvement in terms of trade for farmers or real
prices received by farmers.

14. A.. SOURCES OF GROWTH WITHIN AGRICULTURE SECTOR
1. INCREASE IN AGRICULTURAL PRODUCTIVITY
 Two sources to increase in agricultural output are area and productivity.
 In present scenario, agricultural output has to be increased through improvement in
productivity per unit of land.
 Enhancing access to irrigation and technological advancement are the most potent
instruments to raise agricultural productivity and production in the country.
 Biotechnology can also play an important role in increasing crop and livestock
production.
 Aggregate productivity of crop sector increased at the rate of 3.1 percent per year
during 2000-01 to 2013-14.

15. 2. IMPROVEMENT IN TOTAL FACTOR PRODUCTIVITY
 Improvement in TFP is an important source of output growth which directly
contributes to cost saving and thus increase in income.
 TFP growth represents effect of technological change, skill, infrastructure etc, which
are not counted in the set of production inputs.
 According to Fuglie and Rada (2015), agriculture sector in India has witnessed 2.62
per cent growth in TFP during 2004-12.
 Improvement in farm services such as Agri-clinics also adds to the TFP.

16. 3. DIVERSIFICATION TOWARDS HIGH VALUE CROPS
 Staple crops (cereals , pulses, oilseeds) occupy 77 per cent of the total or gross
cropped area (GSA) but contribute only 44 per cent of total output of the crop sector.
 HVC’s ( fruits, vegetables, fibre, condiments and spices and sugarcane ) occupy just
19 per cent of gross cropped area (GSA) and contribute the same 44 per cent of total
output of the crop sector.
 Between 2004-05 and 2013-14, area under HVC’s in India increased by 9.16 million
hectare (Mha), at an annual growth rate of 3.31 per cent.
Farmers’ income can also be increased by diversifying towards other allied
enterprises like forestry rather than surviving primarily on crop cultivation.
4. INCREASE IN CROP INTENSITY
 It includes raising of short duration crops after the main kharif and rabi season
with the availability of irrigation and new technologies.

17. B... SOURCES OF INCOME GROWTH OUTSIDE
AGRICULTURE SECTOR
1. IMPROVING TERMS OF TRADE FOR FARMERS
 Use of appropriate deflator to arrive at real income of farmers or agricultural sector.
eg: CPIAL (Consumer price index for agricultural labour) .
 Better price realisation through online trading.
eg: e-NAM (e- National Agricultural Market) and revision of APMC Act .
 Opening of markets to traders outside the mandi through online marketing.
eg: UMP (Unified Market Platform).

18. 2. SHIFTING CULTIVATORS TO NON-FARM AND
SUBSIDIARY ACTIVITIES
 In rural areas, agriculture sector engages 64 per cent of the total workforce
and contributes 39 per cent of total rural net domestic product.
This represents overdependence of the workforce on agriculture with
significant underemployment.
 Income of farmers can be improved substantially by shifting workforce
away from agriculture .
 According to estimates of NSSO and CSO, non-farm sectors provide 2.76
times more productive employment than agriculture sector in rural areas.

19. S.N
o
SOURCE SCOPE Contribution In
7 years
Contribution In
10 years
1. Crop productivity (70 percent
segment)
3.1 16.7 25.0
2. Livestock value added (30
per cent segment)
4.5 10.8 16.6
3. Improvement in resource use
efficiency
2.26 16.7 25.0
4. Crop intensity (70 per cent
segment)
1 percentage
point
3.4 4.9
5. Crop diversification (70 per
cent segment)
Area increase by
3.13 per cent,
elasticity
5.0 7.3
6. Better price realisation: crops
only
13 per cent 9.1 9.1
7. Shift to non-farm occupation 1.81 per cent 13.4 19.6
TOTAL 75.1 107.5
PROSPECTS OF GROWTH IN FARM INCOME FROM VARIOUS SOURCES
SOURCE: Report by RAMESH CHAND, NITIAYOG.

21. STRATEGIES FOR IMPROVING
FARMER’S INCOME
Honourable Prime Minister has listed out seven strategies to
help double the income of farmers . They are :
1) Big focus on irrigation with large budgets and integrated water
policies , with the aim of “per drop, more crop”.
2) Provision of quality seeds and nutrients based on
soil health of each field.
3) Large investments in agricultural infrastructures such as
warehousing and cold chains to prevent post-harvest
crop losses.

22. 4) Promotion of value addition through food processing .
5) Creation of a national farm market and removing distortions.
6) Introduction of new crop insurance schemes to mitigate risks
at affordable cost like PMFBY ( Pradhan Mantri Fasal Bima
Yojana).
7) Promotion of ancillary activities poultry, beekeeping and
fisheries .
Other strategies that can be adopted are :-
 Strengthening organic food programs.
 Promotion of Integrated Farming System.
 Integrating all central and state subsidies.
 Promotion of ICT-based agriculture extension.
 Formation of FPO’s to benefit small farmers, women and tribal farmers.

23. STRATEGIES
SOIL
HEALTH
CARD
WARE-
HOUSES
VALUE
ADDITION
IRRIGATION
NATIONAL
FARM
MARKET
AGRI-
ALLIED
ACTIVITIES
CROP
INSURANCE

24. CONCLUSIONS
1. Doubling real incomes of farmers by 2022 is a formidable task but it can be possible only through
the proper implementation of the appropriate strategies.
2. Public R&D institutions should be supported to develop capacity in areas of technologies such as
biotechnology which appear to have great potential.
3. Farming is a skilled profession and hence, people could be skilled and motivated through various
skill development programmes of the government..
4. Lucrative avenues can be created for those who want to leave agriculture and incentives and skills
those who want to enter/continue this occupation.

25. 6. Higher price realisation by farmers need to be achieved through various price realisation market
reforms like e-NAM and various provisions of APMC Act.
7. Promotion of initiatives like soil health card, ICT-based agricultural extension, formation of FPO’s,
Integrated Farming System.
5. Awareness about opportunities available for commercialisation and diversification, better
technologies, facilities, markets, insurance, climate change, government policies, etc. must be
created among the farmers.
8. Concerted and well-coordinated efforts are required to be made between the Centre and the
States.

26. TO THOSE WHO WORK IN
ACRES NOT IN HOURS..
WE THANK YOU!!!!!!

27. REFRENCES
Chand, Ramesh (2016), “Why Doubling Farmers’ Income by 2022 is Possible”, Indian
Express, Opinion Page, April 15.
Chand,Ramesh, Raka Saxena and Simmi Rana(2015), “Estimates and Analysis of Farm
Income in India, 1983-84 to 2011-12”, Economic and Political Weekly, vol.50, No 32,
May 30.
Satyasai,K.J.S.(2015) and Sandhya Bharti(2016), “Doubling Farmers’ Income: A Way
Forward”, Rural Pulse, Issue No.14, March-April, NABARD, Mumbai.
Government of India(2005), Situation Assessment Survey of Farmers- Some Aspects of
Farming,NSSO Report 496, Planning Commission ,New Delhi.
Government of India (2014), Situation Assessment Survey of Agricultural Households in
India, NSSO Report 70th Round, December.
Gulati,Ashok and Shweta Saini (2016), “ From Plate to Plough: Raising Farmers’ Incom
e by 2022”, The Indian Express, March 28.