Farmers’ Income Doubled in Some Parts of the Country; Says SBI Report

On 28th February 2016, while speaking in Rally in Uttar Pradesh, Prime Minister Narendra Modi aimed to double the income of farmers by 2022. However, an unexpected obstruction, Corona Virus Pandemic came and created hindrances in the operation of a number of industries. Still, in some parts of the country, average income of Farmers has seen to be increased. According to a study conducted by State Bank of India, “Farmers’ Average Income has jumped by up to 1.7 times with evidence of doubling in income for some crops across some states.”

The study also noted that, in FY22, Farmers income is doubled in comparison of FY18 for certain crops in some states. Soybean growers of Maharashtra and Cotton growers of Karnataka are some of those who saw an extensive growth. It is also found that farmers’ engaged in cash crops experienced swifter pace of growth as compared to those who grow non-cash crops.

The goal set by Indian Government to double farmers’ income by 2022-23 was an endeavour to initiate farmer welfare activities, reduce agrarian distress and bring parity between income of farmers and those working in non-agriculture profession. The goal was also to while pushing for a platform that ensures the leap of faith for the next phase of growth.  

Maharashtra Sugarcane and Soybean Farmers

Maharashtra has seen immense growth in terms of farmer’s income and has truly attained the government’s Goal of doubled income. Talking about the Soyabean growers only, their average income in FY 18 was INR 1.89 Lac which reached INR 3.80 lac in FY22 registering a straight 2.0 times growth. Also, average income of farmers who grow Sugarcane reached INR 3.89 lakh in FY 22 from INR 2.79 lakh in FY 2018.

Karnataka Cotton and Paddy Farmers

A major cash crop of Karnataka, Cotton, has given two time growth in the income of those who grow it. Average income for cotton growers in Karnataka was INR 2.67 lakh in FY 2018 and reached to INR 5.63 lakh in FY 22. While Non-cash crops, like paddy, have seen a comparatively lower growth.  

What has Contributed in this Increase

In order to achieve this target, Government has announced plethora of measures like increase in MSP, crop insurance, focus on Kisan Credit Cards and soil health cards, boosting National Agriculture Market (e-NAM) and food parks, roping in Non Banking Financial Corporations and microfinance institutions for increasing the coverage of institutional credit as also aggregation and collectivisation measures like Self Help Groups and Farmers Producer Organisations.

Agriculture in India: An Overview

Agriculture provides a living for around 58 percent of India's population. Agriculture, forestry, and fisheries were anticipated to generate INR 19.48 lakh Cr (USD 276.37 billion) in FY20. According to the first advance estimates of National Income FY22, Agriculture and Allied Sectors account for 18.8 percent of total Gross value added (GVA) at current prices.

Because of its enormous potential for value addition, particularly in the food processing business, the Indian agriculture industry is poised for massive expansion, increasing its contribution to global food commerce every year. The Indian food and grocery market is the world's sixth largest, with retail accounting for 70percent of total sales. The Indian food processing sector accounts for 32 percent of the entire food market and ranks fifth in terms of output, consumption, export, and expected growth.

According to the Directorate General of Commercial Intelligence and Statistics (DGCI&S) Quick Estimates data, the overall export of products under APEDA ambit (Agricultural and Processed Food Products Export Development Authority) increased to USD 5.9 billion in April-June 2022 from USD 5.2 billion in the previous fiscal period. The aim for April-June 2022-23 exports was USD 5.8 billion. Tea, coffee, spices, cotton, and marine exports are not included in the APEDA basket.