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

Stronger India–Russia partnership highlights a missed energy breakthrough

By N.S. Venkataraman* The recent visit of Russian President Vladimir Putin to India was widely publicized across several countries and has attracted significant global attention. The warmth with which Mr. Putin was received by Prime Minister Narendra Modi was particularly noted, prompting policy planners worldwide to examine the implications of this cordial relationship for the global economy and political climate. India–Russia relations have stood on a strong foundation for decades and have consistently withstood geopolitical shifts. This is in marked contrast to India’s ties with the United States, which have experienced fluctuations under different U.S. administrations.

From natural farming to fair prices: Young entrepreneurs show a new path

By Bharat Dogra There have been frequent debates on agro-business companies not showing adequate concern for the livelihoods of small farmers. Farmers’ unions have often protested—generally with good reason—that while they do not receive fair returns despite high risks and hard work, corporate interests that merely process the crops produced by farmers earn disproportionately high profits. Hence, there is a growing demand for alternative models of agro-business development that demonstrate genuine commitment to protecting farmer livelihoods.

The Vande Mataram debate and the politics of manufactured controversy

By Vidya Bhushan Rawat* The recent Vande Mataram debate in Parliament was never meant to foster genuine dialogue. Each political party spoke past the other, addressing its own constituency, ensuring that clips went viral rather than contributing to meaningful deliberation. The objective was clear: to construct a Hindutva narrative ahead of the Bengal elections. Predictably, the Lok Sabha will likely expunge the opposition’s “controversial” remarks while retaining blatant inaccuracies voiced by ministers and ruling-party members. The BJP has mastered the art of inserting distortions into parliamentary records to provide them with a veneer of historical legitimacy.

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.

Thota Sitaramaiah: An internal pillar of an underground organisation

By Harsh Thakor* Thota Sitaramaiah was regarded within his circles as an example of the many individuals whose work in various underground movements remained largely unknown to the wider public. While some leaders become visible through organisational roles or media attention, many others contribute quietly, without public recognition. Sitaramaiah was considered one such figure. He passed away on December 8, 2025, at the age of 65.

Epic war against caste system is constitutional responsibility of elected government

Edited by well-known Gujarat Dalit rights leader Martin Macwan, the book, “Bhed-Bharat: An Account of Injustice and Atrocities on Dalits and Adivasis (2014-18)” (available in English and Gujarati*) is a selection of news articles on Dalits and Adivasis (2014-2018) published by Dalit Shakti Prakashan, Ahmedabad. Preface to the book, in which Macwan seeks to answer key questions on why the book is needed today: *** The thought of compiling a book on atrocities on Dalits and thus present an overall Indian picture had occurred to me a long time ago. Absence of such a comprehensive picture is a major reason for a weak social and political consciousness among Dalits as well as non-Dalits. But gradually the idea took a different form. I found that lay readers don’t understand numbers and don’t like to read well-researched articles. The best way to reach out to them was storytelling. As I started writing in Gujarati and sharing the idea of the book with my friends, it occurred to me that while...

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...

Proposals for Babri Masjid, Ram Temple spark fears of polarisation before West Bengal polls

By A Representative A political debate has emerged in West Bengal following recent announcements about plans for new religious structures in Murshidabad district, including a proposed mosque to be named Babri Masjid and a separate announcement by a BJP leader regarding the construction of a Ram temple in another location within Behrampur.

Global LNG boom 'threatens climate goals': Banks urged to end financing

By A Representative The world is on the brink of an unprecedented surge in Liquefied Natural Gas (LNG) development, with 279 new projects planned globally, threatening to derail international climate goals and causing severe local impacts. This stark warning comes from a coalition of organizations—including Reclaim Finance, Rainforest Action Network, BankTrack, and others—that today launched the " Exit LNG " website, a new mapping project exposing the extent of the expansion, the companies involved, and their bank financiers.

Search This Blog