Citation

Kannan E. J. Agrar. Change 2015; 15(2): 201-219.

Copyright

(Copyright © 2015, John Wiley and Sons)

DOI

10.1111/joac.12068

PMID

unavailable

Abstract

India's agricultural sector is at a crossroads, facing challenges of stagnation in crop yields, non-remunerative prices, falling crop incomes and tardy responses from public service systems. There are reports of peasant suicides due to non-profitability of farming. However, scant empirical evidence is available on changes in real income and wages in the Indian agricultural sector. The present study uses data from the National Accounts Statistics and Cost of Cultivation Surveys to analyse the changes in real income and discusses the underlying reasons. The study reveals that the purchasing power of farmers has remained low and has worsened over recent years. The value of crop output has increased, but a disproportionate rise in input costs has resulted in a fall in crop incomes in several states, with the agriculturally developed Punjab being an exception. Interestingly, real wage rates for agricultural labour have shown an increasing trend, indicating improvement in the welfare of labour. © 2014 John Wiley & Sons Ltd.

Language: en

Keywords

Wages; Crop output; Farm business income; Input costs