Final Report on Doubling Farmers' Income: Issues and Strategies For
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Final Report On Doubling Farmers’ Income: Issues and Strategies for Maharashtra State Prepared By: Submitted to: Department of Economic Analysis & Research National Bank for Agriculture and Rural Development (NABARD) June 2018 Table of Contents List of Abbreviations ............................................................................................................................ 3 List of Exhibits ....................................................................................................................................... 4 List of Tables .......................................................................................................................................... 6 Executive Summary .............................................................................................................................. 8 Chapter 1: Introduction & Background of the study .................................................................... 11 1.1. Introduction .......................................................................................................................... 11 1.2. Review of Literature ............................................................................................................ 12 1.3. Farmer’s Income in India .................................................................................................... 13 1.4. Farmer’s Income in Maharashtra – Overview of Agriculture & Allied Activities ...... 17 Chapter 2: Approach & Methodology ............................................................................................. 21 2.1. Approach ............................................................................................................................... 21 2.2. Methodology ......................................................................................................................... 22 Chapter 3: Overview of Study Districts and Survey Observations ........................................... 26 3.1. Akola ...................................................................................................................................... 26 3.2. Latur ....................................................................................................................................... 44 3.3. Nashik .................................................................................................................................... 60 3.4. Sangli ...................................................................................................................................... 76 Chapter 4: Government Initiatives & Trends in Investment in Agri & Allied Sectors ......... 92 4.1. State & Central Level Initiatives to Benefit Agriculture and Allied Activities ............ 92 4.2. Overview of Trends in Investments in Agriculture & Farm Sector in Maharashtra .. 99 Chapter 5: Cluster Wise Recommendations and Strategies for enhancing the farmers’ income in Maharashtra .................................................................................................................... 106 5.1. Western Maharashtra and Khandesh Cluster ................................................................ 106 5.2. Vidarbha & Marathwada Cluster .................................................................................... 112 5.3. General Recommendations (Applicable To All Clusters) ............................................ 120 5.4. Recommendations for Improving Non-Farm Income .................................................. 129 Annexure A: District Wise List of Stakeholders Consulted ..................................................... 134 Annexure B: Sample Questionnaire – Farmer Survey ............................................................... 137 Key References .................................................................................................................................. 154 Doubling Farmer’s Income: Issues & Strategies for Maharashtra State Page 2 List of Abbreviations APEDA - Agricultural and Processed Food Products Exports Development Authority APMC – Agriculture Produce Marketing Committee ATMA - Agriculture Technology Management Agency BSLLD - Basic Statistics for Local Level Development CAIM - Convergence of Agriculture Interventions in Maharashtra DIDF - Dairy Processing & Infrastructure Development Fund DoAHDF – Department of Animal Husbandry, Dairying & Fisheries FAIDF - Fisheries and Aquaculture Infrastructure Development Fund GBY - Gramin Bhandaran Yojana Ha. - Hectare INM - Integrated Nutrition Management IPM - Integrated Pest Management JSA - Jalyukt Shivar Abhiyan Program KCC – Kisan Credit Card KVK - Krishi Vigyan Kendra MIDH – Mission for Integrated Development of Horticulture MNREGA - Mahatma Gandhi National Rural Employment Guarantee Act MoAFW – Ministry of Agriculture and Farmer Welfare NAIS - National Agriculture Insurance Scheme NARP - National Climate Change Adaptation Research Plan NAPCC - National Action Plan on Climate Change NFSM - National Food Security Mission NICRA - National Initiative on Climate Resilient Agriculture NHB - National Horticulture Board NHM - National Horticulture Mission PGH – Plant Growth Hormone PMFBY – Pradhan Mantri Fasal Bima Yojana PMKSY - Pradhan Mantri Krishi Sinchayee Yojana PPPIAD - PPP-Integrated Agri Development in Maharashtra RADP - Rainfed Area Development Programme RKVY – Rashtriya Krishi Vikas Yojana RRB – Regional Rural Bank Doubling Farmer’s Income: Issues & Strategies for Maharashtra State Page 3 List of Exhibits Exhibit 1: Distribution of agricultural household by source of income - India ................................................ 14 Exhibit 2: Source of Farmer Income in Maharashtra viz a viz India.................................................................. 19 Exhibit 3: Broad Approach for the Study .............................................................................................................. 21 Exhibit 4: Agro Climatic Zones of Maharashtra ................................................................................................... 21 Exhibit 5: Overall Study Design for the Study ...................................................................................................... 25 Exhibit 6: Cropping Pattern - Akola District ......................................................................................................... 26 Exhibit 7: Land Holding Pattern - Akola District ................................................................................................. 26 Exhibit 8: Block wise Respondents - Akola District ............................................................................................. 28 Exhibit 9: Family Structure wise distribution of the Households (%) - Akola District ................................... 28 Exhibit 10: Ownership of assets - Akola District (nos.) ....................................................................................... 28 Exhibit 11: Annual Household Expenditure Distribution - Akola District ....................................................... 29 Exhibit 12: Sources of Irrigation – Akola District ................................................................................................. 31 Exhibit 13: Crop Wise Selling Behaviour – Akola District .................................................................................. 33 Exhibit 14: Crop Wise % of crop lost during transportation – Akola District .................................................. 33 Exhibit 15: Cattle Possession – Akola District (nos.) ............................................................................................ 34 Exhibit 16: Sources of Non-Farm Income - Akola District .................................................................................. 34 Exhibit 17: Average Monthly Income from Non-Farm sources (in INR) Akola District ................................ 35 Exhibit 18: Sources of Formal and Informal Credit in Akola District (nos.) ..................................................... 35 Exhibit 19: Key Reasons for destruction of the crops in Akola District............................................................. 37 Exhibit 20: Key Reasons for Non-adoption of Crop Insurance by the farmers in Akola District .................. 37 Exhibit 21: Composition of Farmers’ Income – Akola District ........................................................................... 38 Exhibit 22: Income trends in last 5 years - Akola District.................................................................................... 38 Exhibit 23: Income & Expenditure Trends of the Farmers - Akola District ...................................................... 38 Exhibit 24: Land Holding Pattern & Cropping Patterns - Latur District .......................................................... 44 Exhibit 25: Gender Profile of the Respondents – Latur District ........................................................................ 46 Exhibit 26: Tehsil wise sample distribution of respondents – Latur District .................................................... 46 Exhibit 27: Family Structure of respondents surveyed – Latur District ............................................................ 46 Exhibit 28: Sources of Irrigation – Latur District .................................................................................................. 48 Exhibit 29: Livestock Possession – Latur District (nos.) .....................................................................................