A recent survey conducted by NABARD, highlights the high levels of inter-state income inequality among the agricultural household in India.
The data given in the survey depicts that inter-state income inequality among agricultural household range from Rs 16,020 (In Punjab: highest) to Rs 5,842 (In Andhra Pradesh: lowest).
Adding more to the grim picture of agricultural distress, the surplus remains after consumption expenditure is just Rs 95 in Andhra Pradesh and Rs 4,314 In Punjab.
Also, according to the survey, 85% of farmer households earn a mere 9% of the total income, while the top 15% earn 91%.
If it is compared with the overall inequality in India, it’s far too high.
Given the stark inequality in India, it shouldn't come as a surprise when the report says that 43 per cent of India’s indebted households is farm households.
Land possession was the key variable in determining income from cultivation, which accounted for half of the income inequality and hence was the key variable in explaining income inequality.
The lowest among the farmer groups in terms of landholding earns the least.
India primarily consists of small and marginal farmers(Farmers whose land holdings are less than two hectares (Ha) of land. About 85% landholdings in India are below two Ha)
So this makes small farmers take longer to increase their income in comparison to large farmers.
According to Ashok Dalwai committee doubling farmers’ income by 2022: The initial promise of agrarian reforms was to distribute land to the landless and provide the title of ownership to the cultivators.
Unfortunately, India’s agrarian reforms did not ensure egalitarianism in the agricultural community.
The Green Revolution in the 1960s focused on increasing productivity and yield. But since then, landholdings have become significantly fragmented. Marginal landholdings have tripled in the last 40 years.
