Agrarian crisis: Landholding recedes by 1/3rd, loans swell for farm households, finds NABARD survey
- October 12, 2024
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Agrarian crisis: Landholding recedes by 1/3rd, loans swell for farm households, finds NABARD survey
Sub : Eco
Sec: Agri
Context:
- The latest All India Rural Financial Inclusion Survey (NAFIS) 2021-22 by the National Bank for Agriculture and Rural Development (NABARD) highlights key trends among rural farming families in India.
- This is NABARD’s second survey conducted since 2016-17.
Key findings:
- Rising Income but Increasing Expenses:
- The monthly household income of farmers increased from Rs 8,059 in 2016-17 to Rs 12,698 in 2021-22, a 57.6% rise.
- However, monthly expenditures also surged from Rs 6,646 to Rs 11,262, a 69.4% increase, showing that while income is rising, so are living costs.
- Shrinking Landholdings:
- Average landholding size among farmers decreased from 1.08 hectares in 2016-17 to 0.74 hectares in 2021-22, a 31% reduction.
- Shift in Spending Patterns:
- The share of food in total spending decreased from 51% to 47%, indicating that more is being spent on non-food items, raising concerns about food security.
- Growing Debt Burden:
- The percentage of families with outstanding debts rose from 47.4% in 2016-17 to 52% in 2021-22.
- Despite the increase in debt, access to formal financial institutions improved, with institutional lending rising from 60.5% to 75.5%.
- Access to Government Schemes:
- The Kisan Credit Card (KCC) scheme expanded from 10.5% to 44.1% coverage.
- Pension coverage improved, with 23.5% of families having at least one member receiving a pension, up from 18.9%.
- Insurance coverage saw a significant rise from 25.5% to 80.3%.
- Improved Financial Literacy:
- Financial literacy grew from 33.9% to 51.3%, and better money management behaviours were observed in 72.8% of families, up from 56.4%.
- More rural families reported saving money, with 66% having savings in 2021-22 compared to 50.6% in 2016-17, and the average savings amount increased from Rs 9,104 to Rs 13,209.