Farm Sizes & Incomes in India

July 10, 2012 at 6:24 am 4 comments

When looking up any research or facts about about farming in India, one often come across comments about the smallness of farms in India.  So I wanted to understand how small is small.  Here are some statistics from National Sample Survey Organization (NSSO):

Below table shows the data on the average farm sizes in India:

Total area No. of holdings Average farm                         holding size
(million hectares) (millions) (ha/ holding)
1960-61 134 51 2.63
1970-71 126 57 2.2
1981-82 119 71 1.67
1991-92 125 93 1.34
2002-03 107 101 1.06

 

In 2003, the average farm size (what NSSO calls operational landholding) was about 1 hectare, which equals the area of a 100m x 100m plot.  70% of farmers have plots sizes smaller than a hectare.

Next I looked into historical farm sizes and discovered that in the last 30 years, the average farm size has halved. That is, the average farm size in 2003 was 48% of the farm size in 1971.

So the same farm that supported a single family in 1971 now has to support two families.

I suspect the halving of farm sizes within 30 years has much to do with splitting of farms among male offspring of farmers.  With no substantial employment or income-generating opportunities besides farming in rural areas, it is no wonder that splitting of farms is common practice, ultimately making the farms too small to support a family.  [See back-of-the-envelope calculations in an earlier post]

This leads to another line of thought: What is the average income of a farming family in India?

Here also NSSO comes to the rescue and provides us with detailed data.  The average farming household’s income from all activities is apparently Rs. 2,115 per month. The breakup of this income is as follows:

  • From cultivation:                   969
  • From animals:                         91
  • From wage labour:                819
  • From non-farm activities:     236
  • Total household income:    2,115

The average family size in rural India (as per census data) is 5.4.  So the Rs.2,115 per month translates into Rs.13/day per capita, well below the poverty line.

This begs the question: Is small-scale farming a sustainable economic activity?

 

  • Richa Govil

(Richa shares her thoughts on rural businesses at ‘Stirring the Pyramid’)

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Entry filed under: Evolving India, Readers' Contributions. Tags: , .

Is farming an economically viable opportunity? Why the shrinking share of agriculture in India’s GDP is a good thing

4 Comments Add your own

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