Unveiling the mystery behind agriculture income in India - Get ready to uncover the shocking truths that'll leave you surprised!


Agriculture has been the cornerstone of the Indian economy for centuries and plays a crucial role in providing food security to its growing population. A majority of the population is still employed in agriculture-related activities, and it is one of the largest employers in the country. Despite its importance, farmers' income has been consistently low, leading to financial distress and rural poverty. In this article, we will dive into the current state of agriculture income in India, factors that affect farmers' income, government initiatives, and local innovations.

"Understanding agriculture income in India is the key to unlocking its full potential, empowering millions of farmers to achieve financial stability and drive economic growth."

The Current State of Agriculture Income in India

The income of farmers in India is primarily determined by the yield and price of agricultural products. In recent years, a decline in agricultural yield due to drought, high input costs, and climate change has impacted the income of farmers. According to government data, the average income per agricultural household has increased from INR 77,112 in 2013 to INR 98,934 in 2018, which is a positive sign. However, still, the income is significantly lower than the national average per capita income of INR 1.25 lakhs.

India has diverse agricultural sectors, such as horticulture, cereals, livestock, fisheries, and forestry. The income from these sectors differs, and it is crucial to understand how these sectors contribute to farmers' income.

Horticulture: Horticultural crops such as fruits and vegetables account for a substantial share of agricultural income in India. According to the National Horticulture Mission, the top 3 horticulture crops in terms of production are fruits, vegetables, and spices. These crops are high-value crops and generate a higher income per unit of land as compared to traditional crops.

Cereals: Cereals such as rice, wheat, and maize constitute a significant share of agricultural production in India. However, income from cereals is relatively low due to their low market value. Moreover, erratic weather patterns and low productivity have further reduced farmers' income from cereals.

Livestock: Livestock farming is an essential source of income for small and marginal farmers in India. Income from milk production for dairy farmers is a significant contributor to the overall agriculture income in the country. According to a report by FAO (Food and Agriculture Organisation), India is the largest milk producer globally, and dairy farming supports over 80 million rural households in the country.

Fisheries: Fisheries are another essential sector in agriculture, contributing to food and nutritional security, employment, and revenue. Coastal states such as Gujarat, Maharashtra, Andhra Pradesh, and Tamil Nadu play a significant role in India's fisheries sector with marine fish constituting 71% of the total production.

Forestry: Forestry is an important source of income for indigenous communities and marginalised groups in remote parts of India. However, income from forestry is comparatively lower than other sectors, and there is a need to promote agroforestry and sustainable forest management to enhance farmers' income.


Factors that Affect Farmers' Income

Several factors influence farmers' income, including land fragmentation, climate change, lack of infrastructure, pests, diseases and natural disasters.


Land Fragmentation: Land fragmentation is a significant challenge for small and marginal farmers in India. Fragmented land holdings lead to lower productivity, inefficient use of resources and, ultimately, lower income. The government has initiated several land consolidation schemes aimed at small and marginal farmers to optimise the use of land and resources.

Climate Change: Climate change has become a severe challenge for Indian agriculture. Erratic weather patterns such as droughts, floods, and heatwaves impact crop yields and lead to crop damage. Agricultural insurance schemes such as Pradhan Mantri Fasal Bima Yojana (PMFBY) aim to provide financial support to farmers affected by natural disasters and ensure income stability.

Lack of Infrastructure: Inadequate infrastructure such as irrigation facilities, storage facilities, transportation, and access to credit is another significant challenge for farmers. Poor infrastructure leads to crop spoilage, price volatility, increased input costs, and lower overall income. The government has introduced several schemes such as Pradhan Mantri Krishi Sinchai Yojana (PMKSY) to improve water conservation and irrigation facilities and Kisan Credit Card Scheme to provide affordable credit to farmers.

Pests, Diseases and Natural Disasters: Pests and diseases not only affect the quality and yield of crops but also affect farmers' income. Natural disasters like floods, cyclones, etc. also result in crop damage and income loss. Crop insurance schemes like PMFBY aim to provide financial support to farmers affected by uncontrollable factors.

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Government Initiatives and Policies for Increasing Agriculture Income

The government has initiated several schemes and policies to increase farmers' income and reduce rural poverty.

Pradhan Mantri Fasal Bima Yojana: PMFBY aims to provide affordable crop insurance to farmers against crop loss due to natural calamities. It covers all food and oilseeds crops, horticulture crops, and commercial crops. The premium rates are low, and the scheme offers greater flexibility to farmers and insurers.

Kisan Credit Card Scheme: Kisan Credit Card Scheme aims to provide affordable credit to farmers across the country. It enables farmers to access timely and adequate credit for their farming needs without much hassle and paperwork. The credit can be accessed digitally, and it is easier to monitor and track for lenders, reducing the risk of loan default.

strong>Pradhan Mantri Krishi Sinchai Yojana: PMKSY aims to provide better irrigation facilities and water conservation methods in the agriculture sector. It focuses on improving the use of water and enhancing water use efficiency by adopting novel technologies and raising awareness among farmers. With affordable water irrigation systems in place, farmers can enhance their productivity and overall income.

Pradhan Mantri Annadata Aay Sanrakshan Abhiyan: PM-AASHA is a price support scheme aimed at giving remunerative prices to farmers for their produce. The government collaborates with state governments and public and private agencies to ensure farmers get better prices for their crops.


Local Innovations for Increasing Agricultural Income

Local innovations play a crucial role in enhancing farmers' income and promoting sustainable agriculture in India.

Organic farming: Organic farming has gained popularity in recent years as a sustainable way of farming that enhances soil fertility and reduces dependence on chemical fertilisers and pesticides. It enables farmers to grow high-value crops that fetch higher prices in the market.

Cooperative farming: Cooperative farming is another innovative practice that promotes collective farming and resource-sharing among farmers. It enables small and marginal farmers to pool resources and enhance productivity and income. Cooperative farming also enables farmers to access affordable credit and technical support.

Direct marketing: Direct marketing enables farmers to eliminate middlemen and sell their produce directly to consumers, thereby eliminating intermediaries' commissions. Farmers can sell their produce at a higher price, improving their overall income.

Sustainable practices: Sustainable farming practices aim at conserving natural resources, improving soil health, and reducing the use of chemical inputs. By reducing input costs and improving crop yield, sustainable farming methods enhance farmers' income in the long run.

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Future of Agriculture Income in India and the Way Forward

India's agriculture sector has tremendous potential to enhance farmers' income, promote rural development and ensure food security. The way forward would require empowering farmers through digitalisation, promoting sustainable farming practices, and creating better market linkages to ensure farmers get better prices for their produce. Moreover, there is a need to encourage young farmers, offer them training and support, and ensure they have access to affordable credit and modern farming technologies. Overall, ensuring farmers' income stability and reducing rural poverty are critical to the progress and development of the country as a whole.



Agriculture income remains one of the most critical challenges for India's rural economy. Farmers' income is often a reflection of their yield and the market prices of their produce. The government has initiated several schemes and policies to enhance farmers' income, and local innovations by farmers have also played a critical role. Efforts need to be made to promote sustainable farming practices and digitisation and create better market linkages to ensure farmers get a fair price for their produce. By empowering farmers and ensuring their income stability, India can unlock the true potential of its agriculture sector and reduce rural poverty significantly.