Average farm income soars 1.3-1.7 times in FY22 from FY18: SBI Research
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SBI Research in its latest report has said that the income of farmers has grown in the range of 1.3-1.7 times in FY22 from the FY18 levels on average while grain exports soared to over USD 50 billion. For certain crops in some states (like soyabean in Maharashtra and cotton in Karnataka) farmers' income more than doubled in FY22 from FY18 levels.
The increase in the income of farmers engaged in cash crops has been more prominent compared to farmers growing non-cash crops. This also has led to an increase in the share of agriculture in the GDP to 18.8 per cent from 14.2 per cent, the report said. This rise was also due to the shrinkage of the industrial and services contribution to the economy due to the deadly second wave of the pandemic.
Further, the report, based on key farming states like Maharashtra, Rajasthan, MP, UP, Karnataka, and Gujarat among others, noted that allied/non-farm income showed a significant increase of 1.4-1.8 times in the majority of states in tandem with farm income during this period, substantiating the trend in the 77th National Sample Survey that said source of farmers income has become increasingly diverse apart from crops. Besides, the report also urges the government to launch a livelihood credit card by targeting at least 1 million farmers every year and an omnibus credit guarantee fund for Rs 5 lakh crore agri credit push.
