Agricultural Households in India Increasingly Rely on Non-Farm Income: PRICE Report

Context:

52% of agricultural households now earn additional income from non-agricultural activities, reflecting a growing trend toward income diversification.

• The working paper titled “Reimagining Annadata Households and Their Livelihoods Beyond the Farm” was published by People Research on India’s Consumer Economy (PRICE).
• The shift aims to build financial resilience against farming uncertainties caused by:
  • Market volatility
  • Climate events
  • Economic shocks

Top States by Share of Agricultural Households with Non-Farm Income (2024–25)

• Nagaland: 98%
• Tripura: 94%
• Meghalaya: 85%
• Tamil Nadu: 83%
• Sikkim & Uttarakhand: 80% each

States With Highest Dependence on Farming Alone

• Arunachal Pradesh: 82%
• Punjab: 78%
• Assam: 77%
• Karnataka & Manipur: 73% each

Income Inequality Among Agricultural Households

• Average annual income (2024–25): ₹7.31 lakh
  • Poor farmers: ₹2.03 lakh
  • Rich farmers: ₹26 lakh
• Share of income from farming-related activities: 80% (₹5.77 lakh)
  • Direct farming: 67.1%
  • Allied activities (dairy/livestock): 7.4%
  • Agricultural labour: 4.4%
• Share from non-farm sources:
  • Non-agricultural business: 7.1%
  • Salaried jobs: 3.4%
  • Pension: 1.4%
  • Remittances: Balance

States With Highest Average Annual Income for Agricultural Households

• Punjab: ₹20.1 lakh (₹16.2 lakh from farming alone)
• Haryana: ₹16.7 lakh
• Kerala: ₹11 lakh
• Mizoram & Tamil Nadu: Follow closely

States With Lowest Agricultural Household Income

• Chhattisgarh: ₹3.2 lakh
• Odisha: ₹4.15 lakh
• Jharkhand: ₹4.77 lakh

BS