DOUBLING THE FARMERS’ INCOME IN UTTAR PRADESH BY 2022 - - OPPORTUNITIES & CONSTRAINTS AMARNATH TRIPATHI INSTITUTE OF ECONOMIC GROWTH, DELHI CONTENTS 1 INTRODUCTION .................................................................................................................................. 1 1.1 WHY UTTAR PRADESH ............................................................................................................................ 2 1.2 IMPORTANCE OF AGRICULTURE SECTOR IN UP ............................................................................................ 2 1.3 OBJECTIVES OF THE PRESENT STUDY .......................................................................................................... 6 1.3.1 Farmer level objectives ............................................................................................................. 6 1.3.2 Macro level objectives .............................................................................................................. 7 1.4 ORGANIZATION OF THE REPORT ................................................................................................................ 8 2 THEORY OF FARMERS’ INCOME ........................................................................................................ 18 2.1 SOURCES OF INCOME GROWTH WITHIN AGRICULTURE SECTOR ...................................................................... 19 2.2 SOURCES OF INCOME GROWTH OUTSIDE AGRICULTURE SECTOR ..................................................................... 21 3 SAMPLES & SAMPLING PROCEDURES ............................................................................................... 23 3.1 SAMPLING PROCEDURES ....................................................................................................................... 23 3.2 SAMPLE DISTRICTS ............................................................................................................................... 25 3.2.1 Varanasi .................................................................................................................................. 25 3.2.2 Gorakhpur ............................................................................................................................... 25 3.2.3 Lalitpur .................................................................................................................................... 26 3.2.4 Ghaziabad ............................................................................................................................... 27 3.2.5 Firozabad ................................................................................................................................ 27 3.2.6 Pratapgarh .............................................................................................................................. 28 3.3 SAMPLE VILLAGES & THEIR RELATIVE POSITION IN DEVELOPMENT .................................................................. 28 3.4 SAMPLE CHARACTERISTICS ..................................................................................................................... 29 3.4.1 Demographic Features ............................................................................................................ 29 3.4.2 Occupational Pattern .............................................................................................................. 30 3.4.3 Assets ownership .................................................................................................................... 30 3.4.4 social status ............................................................................................................................ 31 3.5 FARMING CHARACTERISTICS OF THE SAMPLE ............................................................................................ 31 3.5.1 Major Seasons of Agriculture .................................................................................................. 31 3.5.2 Major Crops ............................................................................................................................ 32 3.6 INDEBTEDNESS .................................................................................................................................... 32 3.6.1 Sources of Rural Credit ............................................................................................................ 33 3.6.2 Purposes of Rural Credit ......................................................................................................... 33 4 FARMERS’ INCOME IN UTTAR PRADESH ........................................................................................... 54 4.1 CURRENT INCOME LEVEL OF FARMERS AND ITS COMPOSITION...................................................................... 54 4.1.1 Income Level ........................................................................................................................... 54 4.1.2 Income Composition ............................................................................................................... 55 4.2 NET INCOME FROM CULTIVATION ........................................................................................................... 56 4.2.1 Income from Principal Crops ................................................................................................... 56 4.2.2 Constraints in Growth of Cultivation Income .......................................................................... 57 4.3 NET INCOME FROM ANIMAL HUSBANDRY................................................................................................. 58 4.3.1 Diterminants of Livestock Income ........................................................................................... 59 4.4 DIVERSIFICATION OF ACTIVITIES .............................................................................................................. 59 4.5 SUPPORT& HINDRANCES FOR THE FARMERS ............................................................................................. 60 4.6 ISSUES OF CLIMATE CHANGE & SUPPORT REQUIRED BY FARMERS ................................................................. 61 5 STRATEGY FOR DOUBLING THE FARMERS’ INCOME ......................................................................... 83 I 5.1 INVESTMENT REQUIRED FOR DOUBLING FARMERS’ INCOME BY 2022 ............................................................ 83 5.2 STRATEGY SUGGESTED BY THE STATE GOVERNMENT ................................................................................... 84 5.3 PLAN OF ACTION BASED ON THE STUDY OBSERVATIONS .............................................................................. 85 5.3.1 Reducing Output Gap by improving efficeincy ........................................................................ 85 5.3.2 Increasing Productivity by Adopting Hybrid Seeds.................................................................. 86 5.3.3 Increasing Output by Better Access to Irrigation .................................................................... 87 5.3.4 Increasing the Farm Productivity through Group/Collective Farming and Adopting Model Lease Act 88 5.3.5 Better Realization of Prices ..................................................................................................... 90 6 CONCLUSION AND RECOMMENDATION ......................................................................................... 100 6.1 SUMMARY OF THE FINDINGS ................................................................................................................ 101 6.2 KEY AREAS OF POLICY CONCERN & SOLUTIONS ....................................................................................... 106 7 REFERENCES ................................................................................................................................... 109 II Table 1-1: Crop-wise Largest Producing States in India ................................................................................ 13 Table 1-2: Profitability of the select crops in UP and two other major producing states ............................... 15 Table 1-3: Percentage of Rural Population below Poverty Line in Select States ........................................... 15 Table 1-4: Changing cropping pattern (in per cent) in UP since 1982 ........................................................... 16 Table 3-1: Categorization of agri-climatic zones on the basis of agricultural productivity ............................ 35 Table 3-2: Name of sample villages and their primary features ..................................................................... 38 Table 3-3: Development indicators ................................................................................................................ 40 Table 3-4: District-wise sample population and characteristics ..................................................................... 42 Table 3-5: District-wise child ratio ................................................................................................................. 42 Table 3-6: Female Headed Household in Sample .......................................................................................... 42 Table 3-7: Occupation pattern based on primary occupation ......................................................................... 43 Table 3-8: Share of households (in %) owing durable goods ......................................................................... 43 Table 3-9: Share of households (in %) owing farm assets 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