Key Indicators of Situation of Agricultural Households in India



Key Indicators of Situation of Agricultural Households in India


The National Sample Survey Office (NSSO), Ministry of Statistics and Programme Implementation, conducted Situation Assessment Survey of Agricultural Households in its 70th round (January – December, 2013).  The detailed results of this survey will be brought out through a series of three reports.  In order to make available the salient results of the survey to the data users, well in advance of the release of the main reports, NSSO has released the key indicators of situation of agricultural households in India. NSSO conducted a similar survey on ‘Situation Assessment Survey of Farmers’ during January - December, 2003 in the rural areas of the country as part of its 59th round.


            The survey covered the whole of the Indian Union. The survey aimed at capturing the condition of agricultural households in the rural areas of the country in the context of policies and programmes of Government of India. It was designed to collect information on various aspects relating to farming and other socio-economic characteristics of agricultural households. Information on consumer expenditure, information on income and productive assets, their indebtedness, farming practices and preferences, resource availability, awareness of technological developments, access to modern technology in the field of agriculture and information on crop loss & crop insurance was also collected. With a view to collect relevant information, separately for the two major agricultural seasons in a year, the same set of sample households was visited two times during the survey period.  The first visit was made during January- July 2013 and the second during August- December 2013.  The reference period for data collection was the agricultural year July 2012- June 2013.

            An agricultural household for this survey was defined as a household receiving  value of produce, more than Rs.3000/- from agricultural and having at least one member self-employed in agriculture either in the principal status or in subsidiary status during last 365 days.  On the other hand, in the ‘Situation Assessment Survey of Farmers’ conducted in NSS 59th Round, a ‘farmer’ was defined as a person who possesses some land and is engaged in some agricultural activities on that land during last 365 days preceding the date of survey. Thus the definition followed in NSS 59th Round had kept all agricultural activities of persons outside the scope of the survey which did not possess and operate any land.

Due to the change in coverage and difference in some important concepts and definitions followed in this survey vis-a-vis the 59th round survey, the results of these two rounds are not strictly comparable. While making any comparison of results of these two rounds, sufficient care should be taken to account for these differences.

The results of the survey are based on the Central Sample canvassed by NSSO, consisting of 4,529 villages spread over rural areas of all States and Union Territories. A total number of 35,200 households were surveyed in first visit and 34,907 of them could be re-surveyed in second visit. Some salient findings of the survey regarding situation of agricultural households in the country are as follows:

A.    Number of Agricultural households
·         During the agricultural year July 2012- June 2013, rural India had an estimated total of 90.2 million agricultural households, which constituted about 57.8 percent of the total estimated rural households of the country during the same period.
·         Uttar Pradesh, with an estimate of 18.05 million agricultural households, accounted for about 20 percent of all agricultural households in the country.
·         Rajasthan had highest percentage of agricultural households (78.4 percent) among its rural households and Kerala had the least percentage share of agricultural households (27.3 percent) in its rural households.
Out of the total estimated agricultural households in the country, about 45 percent belonged to Other Backward Classes.
About 16 percent agricultural households were from Scheduled Castes and 13 percent from Scheduled Tribes.
B.     Source of Income  of Agricultural households
·         Principal source of income of agricultural households is largely determined by the extent of land possession.
·         Majority of the agricultural households which possessed more than 0.40 hectare land,  reported cultivation as their principal source of income.
·         Among the agricultural households having less than 0.01 hectare land, about 56 percent reported wage/salary employment as their principal source of income and another 23 percent reported livestock as their principal source of income.
·         Agricultural activity (cultivation, livestock and other agricultural activities) was reported to be the principal source of income for majority of the agricultural households in all the major States, except Kerala where about 61 percent of the agricultural households reported to have received maximum income from sources other than agricultural activities.
About 44 percent of the estimated agricultural households in the country had MGNREGA job card during the survey period.
In rural India about 12 percent agricultural households did not possess any ration card as on the date of the survey.
BPL card was possessed by about 36 percent of the estimated agricultural households and another 5 percent possessed ‘Antyodaya’ cards.
About 13 percent agricultural households having land less than 0.01 hectare did not have ration card.
C.    Possession of Land by Agricultural households
About 0.1 percent of the estimated agricultural households in rural India were landless.
About 93 percent of agricultural households in the country possessed some type of land other than ‘homestead land only’ and little less than 7 percent possessed only homestead land.
Around 78.5 percent of the agricultural households did not possess any land outside the village they were residing during the survey period.
Among the households reported land possession outside the village, about 17.5 percent had land within the State itself and about 4 percent had land outside the State.
D.    Income, investment and indebtedness
About 52 percent of the agricultural households in the country were estimated to be indebted.
Among the major States, Andhra Pradesh had the highest share of indebted agricultural households in the country (92.9 percent) followed by Telengana (89.1 percent) and Tamil Nadu (82.5 percent).
In rural India, about 60 percent of the amount of outstanding loans taken by the agricultural households was taken from the institutional sources, which included Government (2.1 percent), Co-operative society (14.8 percent) and banks (42.9 percent).
Share of income of agricultural households from non-farm business in their average monthly income decreased with increase in land possession.
Net investment in productive assets per agricultural household increased with increase in land size.
E.     Farming practices, crop insurance etc.
Of the estimated 90.2 million agricultural households in the country, 86.5 percent households were engaged in crop production during the period July 2012- December 2012.
The average gross cropped area per agricultural household during this period was 0.937 hectare.
The survey results indicated that very small segment of agricultural households utilized crop insurance.
Lack of awareness was the most reported reason by the agricultural households for not insuring their crops during the agricultural year July 2012- June 2013.
The publication related to above cited Key Indicators is also available on the website of the Ministry of Statistics and Programme Implementation. www.mospi.gov.in
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Key Indicators of Land and Livestock Holdings in India Released



The National Sample Survey Office (NSSO), Ministry of Statistics and Programme Implementation, conducted a survey on Land and Livestock Holdings in the rural areas of the country as a part of NSS 70th Round during January, 2013 to December, 2013.  Similar survey on the same subject was last conducted by NSSO ten years back i.e. during January, 2003 - December, 2003 as a part of its 59th Round.

   NSSO has released the key indicators of Land and Livestock Holdings in India based on the data collected in the 70th Round Survey.  The detailed results of the survey are planned to be released in two main reports, one on ‘Household ownership and Operational holdings in India’ and the other on ‘Livestock holdings in India’.

   The main objective of the survey on Land and Livestock is to generate basic quantitative information on the agrarian structure of the country relevant to land policy. Detailed quantitative information on various aspects of land ownership holdings, operational holdings and ownership of livestock was collected in the survey. The collected information includes area of plots, type of use of plots, leasing pattern, ownership of plots, irrigation facility, type of crop production/farming, number of different types of livestock owned, etc.

          The survey covered the entire rural areas of the Indian Union. The results of the survey are based only on the Central Sample canvassed by NSSO, consisting of 4,529 villages spread over rural areas of all States and Union Territories. The information of the round was collected in two visits from the same set of sample households. The first visit was made during January 2013– July 2013 and the second, during August, 2013 - December 2013.  A total number of 35,604 households were surveyed in first visit and 35, 337 of them in second visit.

        Some key indicators on various aspects of land and livestock holdings by the rural households in the country are as follows:
A.    Ownership of  Land

·         During the agricultural year July, 2012- June, 2013, rural India had an estimated total area of 92.3 million hectares under household ownership of land and the average area owned per household was 0.592 hectares.
·         Within the rural households, the marginal land owners (i.e. possessing more than 0.002 but less than or equal to 1.0 hectare of land) constituted the highest proportion(75.42%)  of total rural households, whereas the large land owners (possessing land more than 10.000 hectares) constituted the lowest proportion (0.24% ) of the total households.  The landless category (possessing land less than or equal 0.002 hectare) constituted 7.41% of the total rural households.
·         In terms of percentage of total area owned, the largest category was the marginal land owners (i.e. possessing more than 0.002 but less than or equal to 1.0 hectare of land) owing 29.75% of the total land area owned.
·         Among all the ownership holdings, the households with self-employed in cultivation as the major source of income, owned the highest share of land (81.4% of the total land area owned) with average area owned 1.104 hectares. Share of land owned by the households with self-employed in livestock farming and the households with self-employed in other agricultural activities were 1.5% each of the total land area owned.


B.     Operational Holding of Land

·         During the agricultural year July,2012- June,2013, rural India had an estimated 108 million household operational holdings, covering a total area of 98.6 million hectares of land. The average area operated per holding (ha) was estimated at 0.907 hectares.

Trends in cultivation pattern
·         88.6% of the household operational holdings were operated for the whole agricultural year, whereas 8.5% was operated only during July,2012 to December,2012, and 2.9% only during January,2013 to June,2013.

·         The land use pattern shows that the estimated land area used for crop production was around 94.7% during the season July,2012 – December,2012 and around 79% during the season January,2013 – June2013.  Percentage areas of land used for non-agricultural purposes were 2.83% and 13.85% in these two periods respectively.
·         The highest percentage of area was used for growing cereals in both the periods July, 2012 – December, 2012 (56.21%) and January,2013 – June,2013 (57.74%). The next major use of land was for production of oil seeds (13.75% and 7.34%) and pulses (6.30% and 10.20%) in the two seasons respectively.

·         At all India level, the major source of irrigation was ground water (tube well, well, etc) covering 67% of irrigated land area during July, 2012-December, 2012 and 71% during January,2013-June, 2013.
·         During the season July, 2012 – December, 2012, the major States where land area was mostly affected by flood included Andhra Pradesh (26%), Assam (23%), Bihar (17%) and West Bengal (13%) . Amongst these, agricultural activities were mostly affected by flood in the States of Assam (7%) and West Bengal (4%).
Trends in Livestock Farming

·         Among the land used for animal farming (i.e., dairy, poultry/ duckery, piggery, fishery and farming of other animals) the major use of land was made in dairy (53.8% and 69.7%) in July, 2012 – December, 2012 and January, 2013 – June, 2013 respectively. In about, 18.7% and 11.8% of land area was used for fishery during the two seasons.
·         The percentage of area used for all types of farming of animals is 0.97% in July,2012 – December,2012 and 1.69 % during January,2013 – June,2013. Also, 36.69% of household operational holdings reported farming of animals in July, 2012 – December, 2012, and 43.58% reported in January, 2013 – June, 2013.

C.        Stock of Livestock/Poultry Birds holding in the country

·         The stock of cattle and buffalo of the country was estimated at 204 million during     2012-13. The estimated population of sheep & goat during the period was about 99 million.
·         The population of poultry birds has been estimated at 255 million during the year     2012-13.
The publication based on above cited Key Indicators is also available on the website of the Ministry of Statistics and Programme Implementation. www.mospi.gov.in
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Key Indicators of Debt and Investment in India for 2013

      The National Sample Survey Office (NSSO), Ministry of Statistics and Programme Implementation has released the key indicators of debt and investment in India, generated from the data collected during January 2013 to December 2013 in its 70th round survey. NSS All India Debt and Investment Survey (AIDIS) are conducted decennially starting from 26th round (1971-1972) and the last survey was conducted in NSS 59th round (January to December, 2003).

      The All India Debt and Investment Survey (AIDIS) aims at generating average value of assets, average value of outstanding debt per household and incidence of indebtedness, separately for the rural and urban sectors of the country, for States and Union Territories, and for different socio-economic groups.  These indicators are amongst the most important measures of the indebtedness of the respective domains of the population and are crucial inputs for estimation of credit structure.  The detailed results of this survey on debt and investment are planned to be brought out by the NSSO through a set of four main reports.  In order to make available the salient results of the survey, well in advance of the release of its reports, for use in planning, policy formulation, for decision support and as input for further statistical exercises, the NSSO has released the key indicators.

      The key indicators are based on the Central Sample consisting of 4,529 villages in rural areas and 3,507 urban blocks spread over all States and Union Territories of the country.

The required information was collected from a set of sample households through two visits to each household.  On considerations of operational necessity, the survey period of the first visit was seven months from January 2013 to July 2013 and the survey period of the second visit was of five months duration from August to December 2013. The total number of households from which information was collected, was 62,135 in rural India and 48,665 in urban India in Visit 1 and 61,650 in rural India and 46,771 in urban India in Visit 2.

The average value of assets (AVA), percentage of indebted households, representing incidence of indebtedness (IOI) and average amount of debt (AOD) per household and ‘debt-asset ratio’ which is defined as the average amount of debt outstanding for a group of households expressed as a percentage of the average value of assets owned by them as on 30.06.2012 for rural and urban areas of India are presented in Table below:


Some salient findings of (i) Household Assets, (ii) Household Indebtedness and (iii) Fixed Capital Expenditure obtained from the survey are as follows:



Ø     Around 98% of rural households and around 94% of urban households in India owned some physical and financial assets as on 30.06.2012. Average value of assets (AVA) owned by a household was Rs. 10.07 lakh for the rural areas and Rs. 22.85 lakh for the urban areas.

Ø     Land and building were found to be the two major components of household assets. In the rural areas, land and buildings together, accounted for 94% share in the total value of assets at the national level - with land 73 percentage points and buildings 21 percentage points. In the urban areas, land and buildings together, accounted for about 92% share in the total value of assets - with land 47 percentage points and buildings 45 percentage points.

Ø     About 31% of the rural households and 22% of the urban households reported debt (cash loan) outstanding as on 30.6.12. The average amount of debt (AOD) for a rural household was Rs. 32,522 and that for an urban household was Rs. 84,625.

Ø     As on 30.6.12, the `debt-asset` ratio at the all-India level was 3.7% for urban areas and 3.23% for rural areas.

Ø     Around 31% of the rural households and 15.2% of the urban households reported fixed capital expenditure and the average amount of expenditure for fixed capital formation is Rs. 10,717 in rural and Rs. 14,493 urban India.      

Ø      Among the social groups, in rural India, IOI (16.9%) was lowest for ST households and highest (35.7%) for OBC households. On the other hand, AOD was lowest for ST households (Rs. 9,610) and highest for ‘Others’ households (Rs. 44,565). In urban India, the lowest IOI was again that of the ST households (16.4%) and the highest that of OBC (26.0%).  But the IOI for ‘others’ was only 19% – lower than that of SC. The relative position of the four social groups, in terms of AOD, was found to be the same as in the rural areas.

Ø     The results of the survey show that non-institutional agencies played a major role in advancing credit to the households, particularly in rural India. The non-institutional agencies had advanced credit to 19% of rural households, while the institutional agencies had advanced credit to 17% households.  In urban India, the picture is different; the institutional agencies appear to have played a major role, advancing credit to 15% of households against 10% by non-institutional agencies.

Ø     The indebtedness as on 30.06.2012, with simple interest is predominant for both rural (20.3%) and urban (13.4%) households. IOI for ‘interest-free loans’ (mainly taken from friends and relatives) was also quite significant - with 6.5% in the rural and 4.4% in the urban.

Ø     The institutional agencies played a significant role in providing credit to the households with a moderate rate of interest (6% to 15%) for both rural and urban area. It is observed that among Total Cash Dues (TCD) funded by the institutional agencies, about 89% in the rural and 92% in the urban were provided at less than 15% interest rates. On the other hand, the non-institutional agencies provided a significant amount of its total loans to households at an interest as high as 20% or above, the share of such loans to total loans by the non-institutional agencies was 69% in the rural and 58% in the urban.

Ø     About 65% of total amount of cash debt outstanding on 30.06.12 among rural households and 52% of the same among urban households had been contracted for a relatively shorter duration of less than 2 years and meagre 2% for a period of 10 years or more for both the sectors.

Detailed publication on above Key Indicators is also available on the website of the Ministry of Statistics and Programme Implementation. www.mospi.gov.in
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Key Indicators of Situation of Agricultural Households in India Key Indicators of Situation of Agricultural Households in India Reviewed by Ajit Kumar on 5:27 PM Rating: 5

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