The government can make safer progress towards increasing farm household incomes if it guarantees more than 100 working days under MGNREGA and invests more in livestock support, according to an analysis of data from the government. SAS
By Tarujyoti Buragohain
Prime Minister Narendra Modi spoke of his dream of seeing farmers’ income double in 2022 on February 28, 2016, when addressing a kisaan rally in Bareilly, Uttar Pradesh. The Ashok Dalwai committee made it clear that the goal of doubling farmers’ incomes was in real terms and that the goal was to be achieved over 7 years with the 2015-16 baseline year. The committee said that a growth rate of 10.4% per year would be needed to double the income of farmers.
The ONSS has published the 77th cycle of its situation assessment survey (2018-19). Juxtaposing its findings with those of SAS 2012-13, we see that the average farm household earned a monthly income of 6,426 and 10,218, respectively, in 2012-13 and 2018-19, in nominal terms.
In nominal terms, the compound annual growth rate (CAGR) is 8.04%. When we used the GDP, CPI-Al, and WPI deflators to convert income into real terms, the real income CAGRs of farmers were 4.1%, 3.1%, and 6%, respectively. Therefore, we have chosen to use WPI to convert nominal income to real income because this deflator has been widely used.
The ONSS estimates the household income of farmers in seven groups based on the land area in hectares, namely: (i)
This growth rate is very close to the recommended growth rate of 10.45. At the state level, very high growth rates are observed in Uttarakhand (17.1%), followed by Meghalaya (14.2%) and Bihar (11.2%). The highest share of total income among those who own
This should indicate a positive impact of Mahatma Gandhi’s National Rural Employment Law (MGNREGA) on increasing farmers’ incomes. This is the most important intervention in the wage / labor market. In addition, the National Livestock Mission (NLM), which was launched in 2014-15 by the government to improve the development of livestock breeds, the level of livestock nutrition and provide extension services. , has contributed to improving the standard of living of breeders. , especially smallholders. At a time when the government aims to double farmers’ incomes in real terms, guaranteeing more than 100 days of work guarantees under MGREGA and greater investments in the livestock sector might be the right thing to do. approach.
Associate researcher, NCAER. Views are personal
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