Unit 1: Agricultural and Livelihood Scenario in India

1. Status of Agriculture in India

Agriculture plays a pivotal role in the Indian economy, serving as the primary source of livelihood for a vast majority of the population. Although its contribution to the Gross Value Added (GVA) has gradually declined as the industrial and service sectors have grown, it remains the backbone of India's socio-economic structure.

Key Macroeconomic Indicators

• GDP Contribution: Agriculture and allied sectors contribute approximately 18% to 20% of India's Gross Value Added (GVA) (at current prices).
• Employment: The sector employs roughly 45-46% of the country's workforce, highlighting a dependency disproportionate to its GDP contribution.
• Global Position: India is the world's largest producer of milk, pulses, and jute, and the second-largest producer of rice, wheat, sugarcane, groundnut, vegetables, fruit, and cotton.

Sub-Sectoral Composition

1. Crops: Dominates the sector but is growing slower compared to allied sectors.
2. Livestock: Growing at a CAGR of ~8%, serving as a crucial insurance against crop failure.
3. Forestry and Logging: Minor contribution.
4. Fishing and Aquaculture: High growth sector, particularly in coastal and inland freshwater states.

Major Challenges

• Fragmented Landholdings: The average landholding size has shrunk to 1.08 hectares (Agriculture Census 2015-16). 86% of farmers are Small and Marginal Farmers (owning less than 2 hectares).
• Rainfed Dependence: Approximately 51% of India’s net sown area is rainfed, making production highly vulnerable to monsoon variability.
• Low Productivity: Yields per hectare for many crops remain lower than global averages (e.g., China, Brazil, USA).

2. Status of Agriculture in Different States

Indian agriculture is highly heterogeneous, varying significantly across agro-climatic zones.

A. North-Western Region (Punjab, Haryana, Western UP)

• Characteristics: The cradle of the Green Revolution. High irrigation coverage (near 98-99% in Punjab).
• Cropping Pattern: Monoculture of Rice-Wheat rotation.
• Status: High productivity and high farmer income, but facing severe ecological crises (groundwater depletion, soil degradation) and stagnation in yield growth.

B. Eastern Region (Bihar, West Bengal, Odisha, Eastern UP)

• Characteristics: Abundant water resources and fertile alluvial soil, but high population density and very small landholdings.
• Status: Low mechanization and productivity gaps. Often referred to as the destination for the "Second Green Revolution." High prevalence of flood risks.
• Focus: Paddy, Jute, Vegetables, and Fisheries.

C. Central Region (Madhya Pradesh, Chhattisgarh)

• Characteristics: Mix of rainfed and irrigated areas.
• Status: Madhya Pradesh has recorded double-digit agricultural growth recently due to improved irrigation and infrastructure.
• Focus: Soybean, Wheat, Pulses (Gram), and Garlic.

D. Southern Peninsular Region (Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, Kerala)

• Characteristics: Varied topography; significant dependence on tank irrigation and borewells.
• Status: High diversification into commercial crops. Vulnerable to droughts (especially Karnataka and Rayalaseema region).
• Focus: Spices, Plantation crops (Coffee, Rubber in Kerala/Karnataka), Cotton, Horticulture, and Millets.

E. North-Eastern Region (Assam, Sikkim, Seven Sisters)

• Characteristics: Hilly terrain, high rainfall, low input usage.
• Status: "Organic by default" in many areas. Sikkim is a fully organic state. Shifting cultivation (Jhum) is still practiced but declining.
• Focus: Tea, Bamboo, Organic fruits, Spices (Large Cardamom), and aromatic plants.

3. Income of Farmers and Rural People in India

The focus of Indian agricultural policy has shifted from "food security" (increasing production) to "income security" (Doubling Farmers' Income).

Income Levels and Trends

According to the NSSO Situation Assessment of Agricultural Households (77th Round, 2019):

• Average Monthly Income: The average monthly income per agricultural household was estimated at roughly ₹10,218.
• Income Disparity: There is a massive gap between states.
  • High Income: Punjab (approx. ₹26,000+), Haryana.
  • Low Income: Jharkhand, Odisha, Bihar (often below ₹5,000 - ₹7,000).

Sources of Farm Income

Understanding the composition is vital:

1. Wages (Salary/Labor): Surprisingly, for the smallest farmers, wages constitute a larger share of income than crop cultivation.
2. Cultivation (Net receipt from crops): The primary source only for medium and large farmers.
3. Livestock: A stabilizing income source; share in total income is increasing.
4. Non-Farm Business: Small shops, transport, and services.

The Crisis of Viability

• Cost-Price Squeeze: Input costs (diesel, fertilizer, labor) are rising faster than the Minimum Support Prices (MSP) or market prices for produce.
• Indebtedness: Over 50% of agricultural households are indebted. The debt-to-asset ratio is particularly high in states like Andhra Pradesh and Telangana.

4. Livelihood: Definition and Concept

Definition

The most widely accepted definition comes from Chambers and Conway (1992):

"A livelihood comprises the capabilities, assets (stores, resources, claims and access) and activities required for a means of living."

Sustainable Livelihood Concept

A livelihood is considered sustainable when it can:

1. Cope with and recover from stress and shocks (droughts, economic crashes).
2. Maintain or enhance its capabilities and assets.
3. Provide sustainable livelihood opportunities for the next generation.
4. Contribute net benefits to other livelihoods at the local and global levels in the short and long term.

The Sustainable Livelihoods Framework (SLF)

The concept revolves around the Pentagon of Assets (Capitals). Households combine these assets to generate income:

5. Livelihood Patterns in Rural and Urban Areas

Livelihood strategies differ significantly based on geography, though the distinction is blurring due to improved connectivity (Rural-Urban Continuum).

A. Rural Livelihood Patterns

Rural livelihoods are predominantly nature-dependent but are rapidly diversifying.

1. Farm-Based Livelihoods:

• Owner-Cultivators: Managing their own land for subsistence or commercial sale.
• Sharecroppers/Tenants: Cultivating others' land for a share of the produce (common in Eastern India).
• Pastoralism: Nomadic or semi-nomadic rearing of livestock (e.g., Gujjars, Bakarwals).

2. Agricultural Labor (Off-Farm):

• Landless households selling labor to other farmers for ploughing, sowing, or harvesting. This is seasonal and precarious.

3. Rural Non-Farm Sector (RNFS):

• Manufacturing: Artisanal crafts, agro-processing (rice mills, flour mills), brick kilns.
• Services: Transport (auto/tractor drivers), petty shops, repair mechanics, mobile recharge shops.
• Construction: A major absorber of rural labor during the agricultural lean season.

4. Migration:

• Circular Migration: Moving to cities for part of the year and returning for harvest/festivals. A critical coping strategy for rural livelihood security.

B. Urban Livelihood Patterns

Urban livelihoods are characterized by a dependence on cash income, housing vulnerability, and the formal-informal divide.

1. The Informal Sector (Unorganized):

• employs the vast majority (approx. 80-90%) of the urban workforce.
• Self-Employment: Street vendors, hawkers, rag pickers, home-based workers (beedi rolling, embroidery).
• Wage Labor: Casual labor in construction (Nakabazaars), loading/unloading, domestic help.
• Characteristics: Low wages, no social security, high job insecurity, harassment by authorities.

2. The Formal Sector (Organized):

• Government jobs, corporate employment, factory work with contracts.
• Access to PF, insurance, and steady salaries.

3. Peri-Urban Agriculture:

• Farming on the fringes of cities.
• Specializes in high-value, perishable items like vegetables, milk, and flowers for the immediate urban market.

4. The Gig Economy:

• A rapidly emerging pattern involving delivery partners (food, e-commerce) and ride-hailing drivers. Offers flexibility but lacks traditional employee protections.

Summary Comparison