**Executive Summary**
This document provides the answer to Lok Sabha Unstarred Question No. 516 regarding the annual income of farmers, to be answered on February 3, 2026. It presents the average monthly income of agricultural households based on the latest NSS 77th round of the Survey (January, 2019 - December, 2019), as well as the average outstanding loan per agricultural household during the agricultural year July 2018-June 2019. It also discusses the implementation of the Swaminathan Commission's recommendations regarding Minimum Support Price (MSP).
**Key Points / Main Content**
* **Average Monthly Income of Agricultural Households:**
* The average monthly income per agricultural household in rural areas is estimated at Rs. 10,218/-.
* Income sources include crop production (Rs. 3,798/-), farming of animals (Rs. 1,582/-), wages (Rs. 4,063/-), non-farm business (Rs. 641/-), and leasing out land (Rs. 134/-).
* State-wise average monthly income for July 2018-June 2019 is detailed in Annexure I.
* **Outstanding Loans of Agricultural Households:**
* The average outstanding loan per agricultural household is Rs. 74,121/-, covering 50.2% of total agricultural households (9.3 crore).
* Loans are availed for various purposes, including farm business (capital and revenue expenditure), non-farm business, housing, marriages, education, and other consumption.
* State/UT-wise details for the agricultural year July 2018-June 2019 are provided in Annexure II.
* **Minimum Support Price (MSP):**
* The government has implemented a policy to keep MSP at a minimum of 1.5 times the cost of production.
* MSPs for Kharif, Rabi, and other commercial crops are fixed with a margin of at least 50% over the weighted average cost of production.
* The Commission for Agricultural Costs and Prices (CACP) considers factors beyond production costs, including demand-supply, prices (domestic and international), and resource utilization.
* **Government Initiatives to Enhance Farmer Welfare:**
* The Government has implemented policies, reforms, developmental programs, and schemes to improve farmer incomes.
* Examples include: PM-KISAN, PMFBY, PM-KMY, MSP at 1.5 times the cost of production, Agriculture Infrastructure Fund (AIF), Farmer Producer Organizations (FPOs), PM-AASHA, Modified Interest Subvention Scheme (MISS), NBHM, AgriSURE, ISAM eNAM, Rashtriya Krishi Vikas Yojana (RKVY).
**Impact Analysis**
**Stakeholder:** Farmers
**Impact:**
* Provides information on average income and debt levels.
* Outlines government support through MSP and various welfare schemes.
**Action Required:**
* Farmers should review available government schemes and policies to potentially improve their income and manage debt.
Key Entities Referenced
Situation Assessment Survey (SAS) of Agricultural Households: A survey conducted by the National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) to estimate the average monthly income and outstanding loan of agricultural households in India.
National Commission on Farmers (NCF): A commission chaired by Prof. M.S. Swaminathan that recommended Minimum Support Price (MSP) should be at least 50 percent more than the weighted average cost of production.
Minimum Support Price (MSP): A policy to fix the Minimum Support Price at a level of minimum one and half times the cost of production as a pre-determined principle for mandated Kharif, Rabi and other commercial crops.
Ministry of Agriculture and Farmers Welfare: The ministry responsible for policies related to agriculture and farmers' welfare in India. This unstarred question will be answered by the minister of this ministry.
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): A scheme implemented by the government of India to improve farmer incomes.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 516
TO BE ANSWERED ON THE 03RD FEBRUARY, 2026
ANNUAL INCOME OF FARMERS
516. MS IQRA CHOUDHARY:
ADV PRIYA SAROJ:
SHRI PUSHPENDRA SAROJ:
SHRI DHARMENDRA YADAV:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ(cid:874)ष एवं (cid:873)कसान क(cid:227)याण म(cid:287)ं ी
be pleased to state:
(a) the median annual income of farmers, separately from farm and non-farm sources
since 2014, State and year-wise;
(b) the number and proportion of indebted farmer households, the total outstanding
agricultural debt and the break-up between crop loans and other borrowings since 2014,
State and year-wise;
(c) the average outstanding debt per agricultural household along with trends over the
last decade, State-wise; and
(d) whether the Government proposes to implement the Swaminathan Commission’s
Minimum Support Price formula (C2+50 per cent) and if not, the reasons therefor and the
details of any alternative income-assurance measures under consideration?
ANSWER
MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ(cid:874)ष एवं (cid:873)कसान क(cid:227)याण रा(cid:207)य म(cid:287)ं ी (SHRI RAMNATH THAKUR)
(a): The average monthly income of agricultural households in the country is periodically
estimated through the “Situation Assessment Survey (SAS) of Agricultural Households”,
conducted by the National Statistics Office (NSO), Ministry of Statistics and Programme
Implementation (MoSPI). As per the latest NSS 77th round of the Survey (January, 2019 –
December, 2019) in the rural areas of the country, the average monthly income per
agricultural household from various sources is estimated at Rs. 10,218/- per month. The
income of agricultural households is derived from multiple sources, including net receipt
from crop production (Rs. 3,798/-), net receipt from farming of animals (Rs. 1,582/-), income
from wages (Rs. 4,063/-), net receipt from non-farm business( Rs. 641/-) , and leasing out of
land (Rs. 134/-). The contribution of these sources varies across States depending on local
agro-climatic conditions, farm size, and cropping patterns. The State‑wise average monthly
income per agricultural household from different sources during July 2018–June 2019 is
given at Annexure I.
(b) & (c): As per the latest Situation Assessment Survey (SAS) of Agricultural
Households, the average amount of outstanding loan per agricultural household is Rs.
74,121/- covering 50.2% of total agricultural household (9.3 crore) during agricultural year
July, 2018- June, 2019 across different States/UTs, as detailed in Annexure-II. The SASalso indicates that loans were availed for various purposes, including capital expenditure in
farm business(25.9%), revenue expenditure in farm business(31.6%), non-farm
business(3.9%), for housing(11.2%), marriages and ceremonies (6.4%), education and
medical (5.4%), other consumption expenditure (9.4%) and others (6.2%).
(d): National Commission on Farmers (NCF), constituted under the Chairmanship of Prof.
M.S. Swaminathan in 2004, inter alia, recommended that Minimum Support Price (MSPs)
should be at least 50 percent more than the weighted average cost of production. To give
effect to this recommendation, Government, in its Union Budget for 2018-19, had made an
announcement to keep MSP at a level of minimum one and half times of the cost of
production as a pre-determined principle. Accordingly, MSPs for all mandated Kharif, Rabi
and other commercial crops have been fixed with a margin of at least 50 percent over
weighted average cost of production.
While recommending MSP, CACP considers important factors like cost of production,
overall demand-supply conditions, domestic and international prices, inter-crop price parity,
terms of trade between agricultural and non-agricultural sectors, the likely effect on the rest
of the economy, besides ensuring rational utilization of land, water and other production
resources and a minimum of 50 percent as the margin over cost of production.
Further, Government of India is committed to enhance the welfare of farmers and
making agriculture more remunerative. The Government has implemented various policies,
reforms, developmental programs, and schemes aimed at improving farmer incomes which
includes Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), Pradhan Mantri Fasal Bima
Yojana (PMFBY), Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY), Fixing of Minimum
Support Price (MSP) at one-and-a half times the cost of production, Agriculture
Infrastructure Fund (AIF), Formation and Promotion of 10,000 Farmer Producer
Organizations (FPOs), Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA),
Modified Interest Subvention Scheme (MISS), National Bee Keeping and Honey Mission
(NBHM), Agri Fund for Start Ups & Rural Enterprises (AgriSURE), Integrated Scheme for
Agriculture Marketing-National Agriculture Market (ISAM eNAM), Rashtriya Krishi Vikas
Yojana (RKVY), among others.Annexure I
ANNEXURE REFFERED IN REPLY TO PART (a) OF LOK SABHA UNSTARRED
QUESTION NO. 516 TO BE ANSWERED ON 03.02.2026 REGARDING “ANNUAL
INCOME OF FARMERS”.
State/UT - wise average monthly income of agricultural
household during agricultural year July 2018- June 2019
Sl. State/ Group of NE States/ Group Income (Rs.)
No. of UTs
1 Andhra Pradesh 10,480
2 Arunachal Pradesh 19,225
3 Assam 10,675
4 Bihar 7,542
5 Chhattisgarh 9,677
6 Gujarat 12,631
7 Haryana 22,841
8 Himachal Pradesh 12,153
9 Jammu & Kashmir 18,918
10 Jharkhand 4,895
11 Karnataka 13,441
12 Kerala 17,915
13 Madhya Pradesh 8,339
14 Maharashtra 11,492
15 Manipur 11,227
16 Meghalaya 29,348
17 Mizoram 17,964
18 Nagaland 9,877
19 Odisha 5,112
20 Punjab 26,701
21 Rajasthan 12,520
22 Sikkim 12,447
23 Tamil Nadu 11,924
24 Telangana 9,403
25 Tripura 9,918
26 Uttarakhand 13,552
27 Uttar Pradesh 8,061
28 West Bengal 6,762
Group of N E States 16,863
Group of UTs 18,511
All India 10,218
Source: NSS Report No. 587: Situation Assessment of Agricultural Households and Land
and Livestock Holdings of Households in Rural India, 2019.Annexure-II
ANNEXURE REFFERED IN REPLY TO PART (b) & (c) OF LOK SABHA
UNSTARRED QUESTION NO. 516 TO BE ANSWERED ON 03/02/2026 REGARDING
“ANNUAL INCOME OF FARMERS”.
Sl.No. State/Group of Average amount (Rs.) of Percentage of covering
NE outstanding loan per agricultural households.
States/ Group of agricultural household
UTs
1 Andhra Pradesh 2,45,554 93.2
2 Arunachal 3,581 12.5
Pradesh
3 Assam 16,407 31.0
4 Bihar 23,534 39.7
5 Chhattisgarh 21,443 31.2
6 Gujarat 56,568 42.5
7 Haryana 1,82,922 47.5
8 Himachal Pradesh 85,825 29.2
9 Jammu & Kashmir 30,435 31.9
10 Jharkhand 8,415 25.3
11 Karnataka 1,26,240 67.6
12 Kerala 2,42,482 69.9
13 Madhya Pradesh 74,420 48.4
14 Maharashtra 82,085 54.0
15 Manipur 5,551 20.6
16 Meghalaya 2,237 9.1
17 Mizoram 23,485 8.0
18 Nagaland 1,750 6.0
19 Odisha 32,721 61.2
20 Punjab 2,03,249 54.4
21 Rajasthan 1,13,865 60.3
22 Sikkim 32,185 10.6
23 Tamil Nadu 1,06,553 65.1
24 Telangana 1,52,113 91.7
25 Tripura 23,944 47.7
26 Uttarakhand 48,338 46.6
27 Uttar Pradesh 51,107 41.9
28 West Bengal 26,452 50.8
Group of N E 10,034 19.2
States
Group of UTs 25,629 27.5
All India 74,121 50.2
Source: NSS Report No. 587: Situation Assessment of Agricultural Households and Land
and Livestock Holdings of Households in Rural India, 2019
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