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Calendar year 2018 is turning out to be yet another year where farmers’ incomes have not seen a “material pick-up”, even though the government estimates marginally higher kharif production, a research report from Crisil said on Monday.
Higher minimum support prices announced by the government have “done little to lift crop profitability so far”, the report said. “Mandi prices of all kharif crop have been trailing the revised MSP rates.”
Farm production
Crisil also expects farm output to be affected in five major States, including Gujarat, Bihar and West Bengal, which have received 20 per cent or more deficit monsoon rainfall this season. “Key kharif crop growing States such as Gujarat, West Bengal and Bihar are hurting, while six others — Maharashtra, Rajasthan, Andhra Pradesh, Madhya Pradesh, Uttar Pradesh and Karnataka — are seeing pain points (because there are rain deficiency in pockets). The worry now is about the rabi crop because Gujarat, West Bengal and Maharashtra have deficient reservoir levels,” the agency said.
While Rayalseema in Andhra Pradesh recorded 36 per cent deficiency, northern Karnataka suffered a 30 per cent deficit, eastern Rajasthan: 23 per cent and Marathwada (in Maharashtra): 20 per cent.
This has had an impact on acreage of crops; for instance, sowing of jowar and bajra in Rajasthan and parts of Maharashtra has come down. Similarly, sowing is estimated to be lower for jute in West Bengal and for cotton in Gujarat and parts of Maharashtra. Also, groundnut acreage is down in Gujarat and parts of Andhra Pradesh, it said.
Pest menace, low prices
There are also other reasons as well. Pest attacks, for instance, have kept farmers away from sowing cotton, whereas in some pulses varieties, the fall in prices last year led farmers to sow less.
Similarly, in Uttar Pradesh, Bihar, Haryana and Punjab — which have good levels of irrigation but mostly for paddy cultivation — the absence of rains has impacted the sowing of other crops such as maize.
According to Crisil, West Bengal had the most districts — as much of 79 per cent — with deficiency of 15-54 per cent for the season. And 74 per cent of districts in Gujarat reported 13-64 per cent deficiency.
Non-farm income up
Contrary to farm income, non-farm income is on an uptrend. “The government’s thrust on constructing rural infrastructure, coupled with the waning impact of demonetisation, likely helped create employment for low-skilled agricultural labourers and boost non-agricultural rural wages,” the report said.
About 52 per cent of rural households are now dependent on non-agricultural sources of income, according to Crisil.
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