NSO 77th Round Report: Situation of Agricultural households in India

Relevance

• GS 3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Context

• Recently, NSO (National Statistical Office) has released its 77^th round of survey on “Land and Livestock Holdings of Households and Situation Assessment of Agricultural Households” in the rural areas of India.

Objectives

• The survey had an objective of generating different indicators like
  • ownership and operational holdings of rural households
  • ownership of livestock
  • income, productive assets and indebtedness of agricultural households
  • farming practices of agricultural households
  • awareness and access to various technological developments in the field of agriculture
  • receipts and expenditure of the agricultural households’ farm and non-farm businesses and receipts from all other economic activities pursued by the members of the agricultural households.

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Who is an agriculture household?

• A household receiving more than Rs. 4000 as value of produce from agricultural activities like cultivation of food crops, pisciculture, animal husbandry, among others.
• and having at least one member self-employed in agriculture either in the principal status or in subsidiary status during last 365 days.

Key results

Loans

• 2% of agricultural households in the country were in debt in 2019.
• The average outstanding loan per household stands at Rs 74,121.
• Only 69.6% of the outstanding loans were taken from institutional sources like banks, cooperative societies and government agencies, while 20.5% of loans were taken from professional money lenders.
  • Of the total loan, only 57.5% was taken for agricultural purposes.

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Monthly income

• The average monthly income per agricultural household during agricultural year 2018-19 was at Rs 10,218.
• Of this, the average income per household from
  • wages was Rs 4,063,
  • crop production Rs 3,798,
  • animal husbandry Rs 1,582,
  • non-farm business Rs 641 and
  • leasing of land Rs 134.

Section-wise agricultural households

• The number of agricultural households in the country was estimated at 9.3 crore with
  • OBCs = 45.8%,
  • SC = 15.9%,
  • ST = 14.2% and
  • Others= 24.1%.

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Marginal farmers

• 5% of rural households had less than 1 hectare of land, while only 0.2% possessed land in excess of 10 hectare.

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Incidence of indebtedness

• The incidence of indebtedness was about 35% in rural India as compared to 4% in urban India.
• 8% households were indebted to institutional credit agencies only against 14.5% households in urban India.
• About 2% of the households were indebted to non-institutional credit agencies only in rural India compared to 4.9% households in urban India.

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