Income and inequality among farm households in Punjab
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Date
2021
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Punjab Agricultural University, Ludhiana
Abstract
The present study was conducted to examine the farm-size productivity relationship, level of
income, extent of inequality and to decompose sources of income inequality among farm
households in Punjab. The study was based on the data of National Sample Survey
Organization (NSSO) 70th round. The data pertained to the agricultural year 2012-13. The
results revealed that majority of the farm households in Punjab belonged to general category
(84.41%) followed by OBC (9.32%) and SC/ST group (6.28%). The average family size of
the farm household was 5.49 members. There were around six per cent of the farm
households headed by female members. The average operational holdings across different
farm-size categories were 0.47, 1.40, 2.76, 6.00 and 14.81 hectares for marginal, small, semimedium,
medium and large farms, respectively. The wheat and paddy were two main crops of
rabi and kharif seasons, respectively. Farm-size and productivity analysis was conducted at
two levels i.e., crop-wise analysis for wheat crop and farm level analysis for kharif, rabi and
all crops. Farm-size and input use relationship was also studied. There was positive and
significant correlation between area under the wheat crop and productivity. For kharif crops,
the farm-size and productivity relationship between productivity and cropped area was found
to be significant and positive. Same results were observed for rabi crops and all crops. Farmsize
and input-use relationship was positive for fertilizers, plant protection chemicals, hired
labour, diesel while negative for hiring machinery. The main source of farm household
income was crops (81.89%), followed by salaries (8.67%), livestock (6.61%) and non-farm
business (2.32%). The distribution of income among farm households was highly skewed.
The Gini coefficient was estimated at 0.50 among the farm households. Using Theil index, it
was analyzed that the inequality within farm-size categories (0.27) was higher than the
inequality between categories (0.18). Livestock came out to be inequality decreasing factor in
overall decomposition as well as intra class decomposition of income inequality. Cooperative
farming, strengthening of dairy sector, promotion of agro-processing industries and
establishment of skill development centers were suggested policy implications of the study.
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Citation
Saini, Rohit (2021). Income and inequality among farm households in Punjab (Unpublished Ph.D. Dissertation). Punjab Agricultural University, Ludhiana, Punjab, India.