Skip to main content

Gujarat: Dilemma of low income from agriculture vis-a-vis other states

 
By Rajiv Shah 
There have been loud claims, which continue to be made till date, that agricultural growth in Gujarat has been a “success story”, which other states must emulate. It is also suggested that Gujarat’s agricultural growth rose from 3.3 per cent per annum in the 1990s to nearly 9 per cent over the last one decade – notwithstanding claims by some experts who say the problem is with the choice of a wrong base year. The argument runs of following lines: Gujarat has written the success story despite facing challenges like depletion of water tables, deterioration of soil and water conditions due to salinity ingress along the sea coast, irregularity of rainfall, and recurrent drought. However, few have sought to see what impact has it made on the actual income of the agriculturists of Gujarat, and how much they have gained vis-à-vis other states. Now, new figures released this month by the National Sample Survey Organization (NSSO) in its report, “Key Indicators of Situation of Agricultural Households in India”, suggest that net incomes from agricultural cultivation remain less than the national average.
Based on the survey carried out between January 2013 and December 2013, the NSSO report has found that, in the agricultural season starting in July 2012 and ending in June 2013, average monthly net receipt from cultivation per agricultural household was Rs 2,933, which was less than the national average, Rs 3,081. Ranking No 12 in a list of 21 major Indian states, this is less than 11 other states. The highest monthly income from cultivation per household was registered by Punjab (Rs 10,862), which is thrice that of Gujarat, followed by Haryana (Rs 7,867), Karnataka (Rs 4,930), and Telangana (Rs 4,227). What should be of particular concern to Gujarat policy makers is, households in poorer states registered a higher net income from cultivation than Gujarat – Rs 4,211 in Assam, Rs 4,016 in Madhya Pradesh, Rs 3,347 in Chhattisgarh, and Rs 3,138 in Rajasthan.
Interestingly, the data suggest that those farmers involved in animal husbandry – an activity in which Gujarat has been traditionally strong because of the powerful Amul cooperative movement launched several decades ago – are able to get much better net receipts compared to almost all major Indian states. The NSSO in its report has identified this category as “farming of animals.” Thus, as against the national average of just about Rs 763 per month per household under this head, Gujarat’s farmers’ net income was a whopping Rs 1,930 from rearing livestock. This is better compared to all other states, except Haryana, whose rural households earned Rs 2,645 per month per household from livestock activity. Even Punjab’s average households earned less than that of Gujarat – Rs 1,658.
Based on NSSO’s 70th round, the report has further revealed that there are a total of 39,30,500 agricultural households in Gujarat, out of which 58.4 per cent are involved in cultivation, which is considerably less than the national average (63.5 per cent). However, what is more interesting is that, Gujarat’s nine per cent agricultural households – next only to Haryana (9.1 per cent) and Tamil Nadu (10.2 per cent) – are involved in livestock activities (thanks again to the white revolution), as against the all-India average of just 3.7 per cent. At the same time, the survey seems to suggest that there has been considerable marginalization of the farming community in Gujarat compared to most Indian states, with a large number of per cent of families dependent on wage labour for survival.
Thus, as against the national average of 22 per cent agricultural households involved in wage earning as their primary means for eking a livelihood, in Gujarat it was 26.7 per cent, which is higher than most states but six – Rajasthan (33.4 per cent), Punjab (31.9 per cent), Kerala (29.9 per cent), Tamil Nadu (29.3 per cent), Andhra Pradesh (28 per cent), and West Bengal (26.8 per cent). Average wages in agriculture per household per month were Rs 2,683 in Gujarat, as against the national average of Rs 2,071. There aren’t many states where agricultural households earn more than Gujarat’s, either – these are Jammu & Kashmir (Rs 7,336), Kerala (Rs 5,254), Himachal Pradesh (Rs 4,030), Haryana (Rs 3,491), and Tamil Nadu (Rs 2,902).
Also of interest is the fact that very few agricultural households in Gujarat – just about 3.7 per cent of the total – are involved in non-agricultural rural enterprises. This is against the national average of 4.7 per cent. Here, Kerala leading with 13.4 per cent of households.
While there is no explanation available anywhere, including in the NSSO report, as to why Gujarat’s income from cultivation is lower than as many as 11 other states, from available indications, this could be because Gujarat’s farmers may be making much higher consumption expenditure in agriculture compared to other states. As against the all-India average of Rs 6,223 per household per month, the average Gujarat household made a consumption expenditure of Rs 7,672, which is higher than most states, except four – Punjab (Rs 13,311), Kerala (Rs 11,008), Haryana (Rs 10,637), and Jammu & Kashmir (Rs 9,017).
---
A version of this blog was first published in The Times of India 

Comments

Post a Comment

TRENDING

MG-NREGA: A global model still waiting to be fully implemented

By Bharat Dogra  When the Mahatma Gandhi National Rural Employment Guarantee Act (MG-NREGA) was introduced in India nearly two decades ago, it drew worldwide attention. The reason was evident. At a time when states across much of the world were retreating from responsibility for livelihoods and welfare, the world’s second most populous country—with nearly two-thirds of its people living in rural or semi-rural areas—committed itself to guaranteeing 100 days of employment a year to its rural population.
Post a Comment
»

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor*  This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.
Post a Comment
»

Concerns raised over move to rename MGNREGA, critics call it politically motivated

By A Representative   Concerns have been raised over the Union government’s reported move to rename the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), with critics describing it as a politically motivated step rather than an administrative reform. They argue that the proposed change undermines the legacy of Mahatma Gandhi and seeks to appropriate credit for a programme whose relevance has been repeatedly demonstrated, particularly during times of crisis.
Post a Comment
»

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.
59 comments
»

Rollback of right to work? VB–GRAM G Bill 'dilutes' statutory employment guarantee

By A Representative   The Right to Food Campaign has strongly condemned the passage of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–GRAM G) Bill, 2025, describing it as a major rollback of workers’ rights and a fundamental dilution of the statutory Right to Work guaranteed under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). In a statement, the Campaign termed the repeal of MGNREGA a “dark day for workers’ rights” and accused the government of converting a legally enforceable, demand-based employment guarantee into a centralised, discretionary welfare scheme.
Post a Comment
»

Making rigid distinctions between Indian and foreign 'historically untenable'

By A Representative   Oral historian, filmmaker and cultural conservationist Sohail Hashmi has said that everyday practices related to attire, food and architecture in India reflect long histories of interaction and adaptation rather than rigid or exclusionary ideas of identity. He was speaking at a webinar organised by the Indian History Forum (IHF).
Post a Comment
»

From jobless to ‘job-loss’ growth: Experts critique gig economy and fintech risks

By A Representative   Leading economists and social activists gathered in the capital on Friday to launch the third edition of the State of Finance in India Report 2024-25 , issuing a stark warning that the rapid digitalization of the Indian economy is eroding welfare systems and entrenching "digital dystopia." 
Post a Comment
»

School job scam and the future of university degree holders in West Bengal

By Harasankar Adhikari  The school recruitment controversy in West Bengal has emerged as one of the most serious governance challenges in recent years, raising concerns about transparency, institutional accountability, and the broader impact on society. Allegations that school jobs were obtained through irregular means have led to prolonged legal scrutiny, involving both the Calcutta High Court and the Supreme Court of India. In one instance, a panel for high school teacher recruitment was ultimately cancelled after several years of service, following extended judicial proceedings and debate.
Post a Comment
»

India’s Halal economy 'faces an uncertain future' under the new food Bill

By Syed Ali Mujtaba*  The proposed Food Safety and Standards (Amendment) Bill, 2025 marks a decisive shift in India’s food regulation landscape by seeking to place Halal certification exclusively under government control while criminalising all private Halal certification bodies. Although the Bill claims to promote “transparency” and “standardisation,” its structure and implications raise serious concerns about religious freedom, economic marginalisation, and the systematic dismantling of a long-established, Muslim-led Halal ecosystem in India.
Post a Comment
»