Farm income to be lower by 18% in coming years: Survey

Farm income to be lower by 18% in coming years: Survey

Farm income to be lower by 18% in coming years: Survey

Even as the government has set a vision of doubling farmers' income by 2022, the country's farm income is set to decrease by 18% in the coming years in case the climate change is ignored.

"In the absence of any adaptation by farmers and any changes in policy (such as irrigation), farm incomes will be lower by around 12% on an average in the coming years," the Economic Survey presented in the Parliament on Monday said.

The annual survey further goes on to predict that unirrigated areas will be the most severely affected, with potential losses amounting to 18% of annual revenue.

According to climate change models, such as the ones developed by the Intergovernmental Panel on Climate Change (IPCC), predict that temperatures in India are likely to rise by 3-4 degree Celsius by the end of the 21st century.

The survey is also critical of the uneven rainfall across the country. "If the observed increase in the number of dry days over the past 4 decades is applied to the short-run estimates, this channel alone would imply a decrease in farm incomes by 1.2%," the survey says.

The survey also suggests that these losses might go up to 25%. "At current levels of farm income, that translates into more than Rs 3,600 per year for the median farm household," it states.

The real agriculture growth in the four years since 2014 is estimated at 4%.

Despite these worrying figures, the government has maintained its stance on doubling the farmer income across the country by 2022. "The government is keen to double the income of the farmers by 2022, for which it has launched several new initiatives that encompass activities from seed to marketing," the survey said.

The government is banking on credit from institutional sources will complement all such government initiatives for this.